Network marketing is legitimate business. In short it simply is a paradigm shift in the distribution processing of goods and services. Traditional distribution is usually involves a lengthy process of middle men (wholesalers, jobbers, distributors and retailers) are hired to eventually deliver the product to the end customer.
The following definition of network marketing was found in the online encyclopedia, Wikipedia:
Multi-level marketing (MLM), also known as Network Marketing is a business distribution model that allows a parent multi-level marketing company to market their products directly to consumers by means of relationship referral and direct selling.
Independent unsalaried salespeople of multi-level marketing referred to as distributors (associates, independent business owners, franchise owners, sales consultants, consultants, independent agents, etc.), represent the parent company and are rewarded a commission relative to the volume of product sold through each of their independent businesses (organizations). Independent distributors develop their organization by either building an active customer base, who buy direct from the parent company and / or by recruiting a down-line of independent distributors who also build a customer base, expanding the overall organization. Additionally, distributors can also earn a profit by retailing products which they purchased from the parent company at wholesale price.
Distributors earn a commission based on the sales efforts of their organization, which includes their independent sale efforts as well as the leveraged sales efforts of their downline. This arrangement is similar to franchise arrangements where royalties are paid from the sales of individual franchise operations to the franchisor as well as to an area or region manager. Commissions are paid to multi-level marketing distributors according to the company’s compensation plan. There can be multiple levels of people receiving royalties from one person's sales.
First, it’s based on providing people with real, legitimate products they need and want at a fair price. While some people do make a lot of money through network marketing, their financial benefit is always the result of their own dedicated efforts in building an organization that sells real products and services.
Pyramids are illegal and are based on taking advantage of people. For a person to actually make money in a pyramid scheme, someone else has to lose money. However in network marketing, each person can multiply his or her efforts, skills, and talents by helping others be successful. Network Marketing has proved itself as a part of the new economy and a preferred way to do business here and around the world.
REALIZE THIS: *Network Marketing isn’t about taking advantage of friends and relatives.
*Network Marketing isn’t about a get rich-quick scheme. (Some people do make large amounts of money quickly). Network Marketing is a serious business for serious people. It is a proven system where the design, creation and expense the corporate team has gone through becomes a road map for your own success. Just follow the simple, proven and duplicable system the company provides. Network Marketing provides the ability for to create a residual form of income. Residual income is not based on wages but rather leverage. This concept usually involves a system that is able to take the place of the individual or a system that incorporate the efforts of others rather than simply the one individual. Here’s how residual income works.
The real key is this: Network Marketing is all about leverage. You can leverage your time and increase the number of hours of work effort on which you can be paid by sponsoring other people and earning a small income on their efforts. J. Paul Getty, who created one of the world’s greatest fortunes, said “I would rather make 1 percent on the efforts of 100 people that 100 percent on my own efforts.” This is the cornerstone of network marketing.
Network marketing is an organized method. You work a few dedicated hours each week, with each hour of effort serving as a building block for their long-term business growth. You sponsor other people and teach those people how to sell the company products and sponsor others who duplicate the process.
Network Marketing inherently has many attributes are not available in other industries that are not available in many other industries. These attributes such as residual income, leverage and time compounding have been the features that continue to attract individuals from all walks of life.
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