The Network Marketing Success Ezine

Don't make someone else rich! What is the ultimate pyramid scheme? Your place of employment is, most likely, a fine example of a pyramid scheme. Think about it! The time that you are spending working for someone else is making them very rich. Why not take that time and make yourself rich? It is easier than you think!

Are you tired of trading your time for a paycheck? Are you sick and tired of going to work every day to make someone else rich? Do you **** your lifestyle? If any of the above is true for you, then read on.

Multi level marketing allows you to change your lifestyle and have more time to do what you want to do because Multilevel Marketing allows you to create residual income. Residual income is money that comes in month after month without you having to do any extra work. For example, residual income of $700 a month is the equivalent of investing $168,000 in a CD that returns five percent. There are MLM companies that only require a downline of 20 people or less to make a residual income of $700. You could go on vacation for a month, and still make $700. Now, that is powerful. So, remember, Multilevel marketing is not about making money; it's about residual income. When you understand the concept of residual income, the power of network marketing becomes crystal clear.

Six reasons that multilevel morketing will change your life:

Multilevel marketing is a very touchy subject in the business world. Many people, when they hear the term multilevel marketing, immediately think, “pyramid scheme”, which is a very negative connotation. And while some multilevel marketing companies are perfectly legit and can provide decent residual income to participants, the pyramid scheme description is not completely inaccurate.

In general terms, a multilevel marketing program is one in which individuals are signed up, usually online, to become commission only salespeople for the parent company. They either sell directly to customers or, more commonly, have their own website or blog on which they place ads for the parent company. When customers click on those ads and then buy a product, the commission only salesperson makes a commission on the sale. This is also commonly referred to as affiliate marketing.

Affiliate programs have become wildly popular in the past few years. There are many ads and articles out there claiming that you can make a fortune by being an affiliate for a company. The truth is, while making good income through a multilevel marketing program is possible, it is not as simple as some make it sound.

One thing that many people who are excited about becoming an affiliate do not understand is that they have to do virtually all of the “sales” work themselves. It is, in a very real sense, becoming a salesperson, which many people have no interest in. While there may not be any literal door to door sales involved, it is the internet equivalent of that, in that you have to persuade people to come to your blog or site, and then entice them to click on your ads. You truly have to sell yourself (through your blog or site) in order to succeed in an affiliate program.

Network marketing opportunities that work not only exist, but are also doing quite well for themselves and their representatives. Some people will no doubt scoff at the notion. It’s understandable considering the number of businesses that pose as reputable top notch network marketing opportunities.

To give you a better idea of what network marketing is and what it isn’t, let’s look at some of the basics of network marketing. Network marketing isn’t an industry in and of itself. It’s a method of distribution for various products and services.

Network marketing organizations rely on their representatives to promote and sell the company product or service. This saves the company the huge expense of marketing themselves.

Also, because network marketing allows reps to recruit and train their own sales team, they receive a portion of the revenue generated by their sales team.

When most people hear the terms network marketing or multi-level marketing, they tend to immediately think “oh no…! Not another pyramid scheme.” It’s good to have a basic understanding of the fundamental difference between the two.

Point blank, pyramid schemes are illegal. Besides that however, pyramid schemes don’t rely on the sale of a product or service. Instead, these organizations focus heavily on recruiting and provide give little or no value to the new recruit aside for the promise of big bucks.

So, if the business opportunity you’re looking at doesn’t have a clearly defined product or service, or relies heavily on fancy recruiting systems to “do all the work for you”, it’s most likely an just another attempt to dazzle you with lots of hype.

Believe me, I speak from personal experience. “Everything that glitters, ain’t gold.” Use good judgment, and be sure to do the proper background research before you spend your hard earn money on a potential business opportunity.

Having its roots way back in the 1940's, the network marketing business today is looked up to as a multi-billion dollar industry.

Not so long ago, however, the network marketing business method was frowned upon and was included in the league of such financial scams as the pyramid scheme and other get-rich-quick schemes.

Nevertheless, throughout the years, network marketing has proven its worth as a stable and legitimate method of doing business. In fact, network marketing has developed into one of the major powerful pillars of the 21st century economy. Furthermore, business leaders around the world consider network marketing as the "business of the future."

Would you like to know why network marketing will ALWAYS work? Here are some reasons:

*People will ALWAYS need extra income.

With the unpredictable fluctuation of inflation rates and currency rates in most economies in the world, people who have full time jobs all the more need to have a sideline to augment their income and make both ends meet. Even in more comfortable households where the family's basic needs are met with barely a sweat, it still wouldn't hurt to have supplemental income for the members to enjoy a little more luxury, right?

The truth is, extra money will ALWAYS be appreciated and be a great help — be it for savings, for that long overdue vacation, or for emergency funds. No matter what your financial status, you will ALWAYS be thankful for that opportunity to earn a little more.

Would you also want to have extra income to spend on anything that your heart desires? Network marketing will ALWAYS be one of the simplest and least risky ways of getting that extra cash!

*People will ALWAYS want flexible working hours.

When you mention the term Multi-Level Marketing or the MLM business, the one thing that usually comes to mind is a pyramid scheme. However, if you have any experience at all with Multi level marketing companies and the MLM business itself, you would know that this is not the case at all. Instead of cheating people out of their money through a pyramid scheme, MLM companies actually aim to help individuals joining the business to earn a living in a perfectly legal manner.

First, here's a quick definition of Multi Level Marketing. This is a type of marketing strategy where a person will be compensated for promoting a direct selling company – not only for the products that you will actually sale, but also for the sale of those who you introduced to the direct selling company or the MLM companies.

This is probably the reason why the term 'pyramid' was coined – but this is not necessarily a bad thing as far as the MLM business is concerned. What it simply means is that the wide the network that you have, the more opportunities for profit you will have.

Top 5 Reasons to Join MLM Pre-Launch

Now, let's take a look at the top 5 reasons why you should join MLM pre-launch. Basically, it means that you will be joining new Multi level marketing companies even before they actually launch and expand in the market.

If you feel that joining a MLM pre-launch would be a risky proposition, then think again. What matters is for you to have a deeper understanding of how the new companies will operate so that you can take the necessary precautions to protect your initial investment.

Here are the top 5 reasons why you should join MLM companies in their pre-launch phase:

How does network marketing work? Many people think that it is the best business model out there. Other people are so afraid of the concept that they just assume network marketing is a pyramid scheme or a scam.

The official definition of network marketing is a distribution channel that is defined by government regulations. It’s nothing more complicated than that. But exactly what kind of distribution program is it? The ideal way to understand network marketing is to understand what a traditional distribution model is first.

There are several key components to a traditional distribution model: the manufacturer, the agents, the wholesaler, the retailer, and finally, the customer.

Manufacturers create products in large quantities and they work directly with wholesalers and agents.

Agents are the middlemen who negotiate between suppliers and distributor to make contracts between different distribution channels. Now, some manufacturers don’t work with agents at all, and just connect with the wholesalers. However, agents still play a part in the transactions, because agents make sure all negotiations are legal under the rules and regulations of importing and exporting product.

Wholesalers keep large quantities of product and stock on hand. Wholesalers work with retailers directly. They are who negotiate with manufacturers and with agents about storage of backlogs of products, and they also distribute product in a way that makes sure that retailers have the right amount of product on hand.

Retailers are the only people who actually sell directly with customers. They carry product and stock on hand, after getting it from wholesalers.

The customer is at the end of this chain. Product moves through all of these channels and once the customer gets it, the price is raised considerably! The customer is not able to figure out the true cost of a product from what they pay for it.

Everybody wants to earn money. For this reason, many people are enticed to find ways how to generate additional income. They try different business, whether big, small, or at-home. They try direct selling. However, the most common income-generating venture is the multi-level marketing or the MLM.

Basically, MLM, also known as network marketing, is another kind of business that combines contracting business and direct marketing.

The problem with the advent of MLM is that they are greatly associated with the so-called "pyramid scheme." This is because many people are enticed to join pyramid scheme using the recruitment process that is why it has been a popular venture in the market for quite some time.

Consequently, because of its focus on downline promotion, pyramid scheme has been associated with MLM or network marketing because they use the same technique, which is creating a downline.

However, the caveats of pyramid scheme were based on the fact that people require each member to pay certain amount of money as membership or registration fee.

On the other hand, MLM does not work that way. They do not require their member to require their recruits to give money as registration fees. Hence, it has greatly been noted that MLM is more on the real sense of direct marketing, while pyramid scheme is an illegal and fraudulent activity.

As time goes by, MLM continued to grow, with many people trying to get their own residual income within the business. With residual income, they get to earn commission with every person they bring to the company. With this, more and more people are enticed to join the business because of this recruitment process.

Are MLM/Network Marketing Businesses A

Honest Way to Earn Income?

The MLM/Network Marketing Business

MLM (Multi-Level Marketing) is based on the concept of distributing the process of selling onto independent businesspersons. Honest MLMs give everyone (and anyone) the opportunity to start and grow their own business. Consider that the MLM concept can be applied to selling every good and/or service, and that every person is a potential future representative. One can say that everything has the potential to become a MLM opportunity.

Think about where you work. Isn't it true that the boss (or company) is raking in the big bucks out of the money YOU are making for the company? Maybe you aren’t in sales. You still contribute something of value to the company. If you didn’t, they wouldn’t pay you! Your paycheck is a reflection of that value. Whether you work in sales, for a nonprofit, or in the service industry, somebody somewhere is making money and you are contributing to that effort. If they weren’t making money, the company would collapse.

There are many good examples of traditional businesses that function very much like a MLM. Examples include the Insurance business, the Yellow pages guys, your local Auto Dealers, etc. Look at a sales force. The salesman makes a commission of 12%. That’s all he makes unless he makes his quota or sale goals and then he may get a bonus. The sales managers for these companies may have 10 salespeople to train, keep track of, and motivate. As reward for this extra work, he makes 3% of everything that each salesman makes plus commissions and bonuses for his own effort. He may make an additional bonus for all of his salesmen making their sale goals. And the owner of the company makes money on everyone!

When you tell people that you're involved with a Network Marketing company, many will respond with things they've heard.  You might have people say, "Is this one of those pyramid schemes?" or "Is that one of those get rich quick things?"  There are many myths about the Network Marketing industry.  Here are four common myths debunked.

Myth:  Network Marketing is a pyramid scheme.

Network Marketing, or MLM, is different than a pyramid scheme.  Network Marketing is a business model that moves products or services and compensates distributors for product or services moved through their network.  It is completely legal.

A pyramid scheme, on the other hand, does not involve moving products.  A pyramid scheme involves paying money to be involved and receiving money from those you recruit.  No goods or services are received when people are involved in a pyramid scheme.  Pyramid schemes are illegal.

Myth:  Network Marketing is a way to get rich quick.

Network Marketers can and do get rich…the industry is full of rags to riches stories!  However, most people who become successful Network Marketers do not get rich overnight.  It takes hard work and dedication in order to become a successful Network Marketer.

Myth:  Most people fail in Network Marketing.

Many people join Network Marketing companies every day.  Unfortunately, not everyone who joins a Network Marketing company will become a successful Network Marketer.

The fact is, most people quit before they ever become successful.  They don't put forth the effort and invest the time necessary to become successful Network Marketers.  There is a difference between quitting and failing.  The fact that many people quit doesn't mean that Network Marketing doesn't work.  It does work…but not everyone is committed to reaching the top.

How successful are multilevel marketing businesses? Let's just pump out some numbers here, shall we? Avon, probably the most well-known MLM company in the world, tops $6 billion a year. Amway makes about $4 billion, Herbalife about $1.5 billion and Mary Kay $1.2 billion. That's how well multilevel marketing businesses are doing these days, thanks to the hard work, solid product and service lines and tireless recruitment practices of its members.

What is a multilevel marketing business?

A multilevel marketing business, also known as an MLM is essentially a networking business. Unlike traditional forms of businesses, MLM is made up of representatives, distributors or members who are allowed to recruit other distributors and members to form a downline.

Depending on the business model being followed by the MLM program, members earn by collecting commissions from the sales generated by their downlines and commissions obtained from their own sales. Sometimes, recruiters earn a percentage from the membership fees paid by their downlines. However, in legitimate MLM businesses, this is not the only means with which members earn. Otherwise, the business will be treated as a pyramid scheme.

Are multilevel marketing businesses legal?

Yes. The manner with which an MLM business creates its sales force and pays its members is perfectly legitimate. Problems only arise when unscrupulous individuals begin using the concept of MLM for their own dubious designs, either to promote a business that doesn't exist or a product that is low quality at best. Only when there is a legal backbone to the program and there are real, actual products and/or services being sold to consumers can an MLM be considered legal.

Do multilevel marketing businesses offer real money-earning potential?