“What is network marketing?”
If you’re new to the concept of network, or multi-level, marketing – or if you’ve heard of it but never been involved in it – you may not know exactly how it works. Or, you may have heard contradictory information about it, and don’t know what the truth is.
In this article, I will get down to the basics of network marketing.
What Is A Multi-Level Marketing Company?
A multi-level marketing company, or MLM, distinguishes itself from other companies in two ways.
- It does not pay for advertising. Rather, it depends on word-of-mouth advertising for its growth and success.
- It pays commission to people who join the company and do that advertising (by “networking”) and therefore get other people to join the company and/or use its products or services.
“Multi-level” refers to the payment structure. If you join Company X, and then find five other people who join Company X, who then go out and each find five other people to join, etc., you get a commission from the monthly purchases of everyone in your group down to a certain level that the company has arbitrarily chosen.
This group that grows below you in the company is called your downline. Your upline, on the other hand, is the person who sponsored you into the company, and the person who sponsored them, etc.
“What do I care? I don’t need another job!”
Are you familiar with the term “residual income”? This is income you receive month after month after having worked for it only one time. Network marketing is the only way to develop that kind of residual income, where, after you have sponsored only a handful or two people into their business, and helped them to sponsor some people, you can basically sit back and watch your monthly check grow.
How does that work? First of all, most MLMs require their members to spend a certain amount each month in order to qualify for commissions. Therefore, you will get some commission from most everyone in your group every month.
Second, because the people who join the company want to develop a residual income, most will sponsor at least one or two people. So – assuming the companies products or services produce results or are in high demand – your group will continually grow. Therefore, your check will continually grow.
Furthermore, building an MLM business requires only a few hours of your time every week.
Would you like to quit your job?
Let me give you a conservative example of what that looks like. Let’s say that you have four people on your first level whom you have personally sponsored. And let’s say that each of them sponsors four people, and each of them sponsors four. Say the average monthly commission you make from each person in your group is $10. You would be making a monthly check of about $840, and all you ever did was sponsor four people.
Not only that, but your group will continue to grow, until you are eventually making ten, twenty, even thirty THOUSAND dollars per month. For some network marketers, this kind of income takes a few years to develop. For others, it may take just a few months.
I know of one network marketing couple who was making around $5,000 per month after being in the company for only three months. Eventually, they were making between $30,000 and $50,000 EVERY MONTH. This is not the norm, but within the realm of possibility.
Yes, network marketing has its ups and downs. I’ll get into that later. But for now, I want to drive home the point that network marketing is a realistic way for you to develop the financial freedom you need in your life in order to live the life of your dreams.
Think about it.
