What exactly is Network Marketing?

What is the Network Marketing Business Model?

Many people are under the impression that Network Marketing or Multi Level Marketing is a pyramid scheme. Nothing could be further from the truth. Network Marketing is a distribution channel just like a retail store or Amazon or any other method of getting products from a manufacturer to a consumer. Network Marketing is the sale of products to consumers through a network using word-of-mouth advertising. There are three key aspects of the model:

1) Associates or distributors can sell products to consumers and   receive a commission on their sales

2) Associates can increase their income by building a network of others who do the same thing. They are then eligible for commission on the sales in their network.

3) Associates can improve the productivity of their network through leadership, guidance and training.

The network marketing business model allows the average person, with no business background, to own a business of his or her own. It is a structure where you are affiliated with but not employed by a company that has a product or service that you believe is worthy of sharing with others.

The Network Marketing company knows that word of mouth marketing is far more powerful than any other form of distribution so they pay you for your efforts in building a consumer and distributor base. Your commission is based upon the sales of your entire team that, over time, can grow to many thousands of associates. This concept of leveraging has created more than 200,000 millionaires in the last 20 years – more than any other type of business. Leveraging can best be explained by understanding the growth effect of compound interest. When you invest and reinvest the interest earned, it is the same as having a distributor organization that grows by people talking to more people about your product.

It’s not like sales where you have to sell a new widget every week to be paid. As people consume the product each month on an autoship program, you are paid many times over for that original sale. Thus creating an ongoing residual income.

The company is responsible for everything to do with the logistics of the business itself except the advertising. They take care of product development, shipping, new markets, legal issues, insurances, customer service and the rest of the headaches. They also pay affiliates directly. Your only job is to spread the word.

Many people have the dream of owning their own business but don’t know how to do that while still working a job. Network marketing allows you to build the business in your spare time with training and mentoring from experienced people who have a strong incentive to help you become the best you can be.

It is very difficult to find the ideal career where you can have both a substantial income coupled with abundant time freedom. Network marketing is the only business I know of where that is possible. Usually, you can only achieve one or the other.

Many business people such as Robert Kiyosaki, Warren Buffet and Paul Zane Pilzer have endorsed the model as the ideal business for the average person wanting to own their own business without having to make a huge financial investment. The investment needed is only time and commitment.

Want to know more about how you can benefit from the business model that more and more professionals are choosing to create time freedom and financial independence. Len is a 20 year veteran of the industry who sold a multi-million dollar business to become a Network Marketing professional. Message me if that's something you would like to know more about. Just click on my picture at the bottom of this article and then on "Message". Type "Learn More" in the message and I will send you a 7-minute video that will allow you to check us out.  In case you still think it's a pyramid scheme, you'll enjoy this: