Network Marketing

Network Marketing + The Internet = CASH

Network marketing, sometimes referred to as Multi-Level Marketing (MLM) or Referral Marketing, is a business model in which anyone can work from home, invest a small amount of money, and through a little hard work and determination rise to a staggering level of income. It is the ultimate example of free enterprise and is a business model based upon people helping people. Network marketing is also the most affordable way to start up a home based business.

Reputable companies like Tupperware, Mary Kay, Amway, Prepaid Legal, and many more have used network marketing to distribute their products. Typically there is a very low upfront investment for the purchase of a product sample kit. The product usually has a fixed sales price with good markup, and the company will typically have advertising materials and training to help you promote the product.

The network marketing company enjoys an army of representatives selling it's products, often by word of mouth. This is a huge benefit because word of mouth advertising is still the most powerful form of advertising today. Also, instead of paying millions of dollars in up-front marketing costs it pays post-sales commissions to independent representatives. The end result is a win-win relationship between product manufacturer and independent representative.

The Power of Leverage

Most network marketing programs will also ask you to recruit sales reps who will become your downline. As their recruiter, you're entitled to earn commissions on their sales as well. This is where the power of network marketing becomes apparent. By recruiting just a few hard workers you can build an organization of hundreds or thousands of people, each generating you a small commission. For many in network marketing the small commissions paid by each recruit amounts to a six figure income.

The typical corporation leverages it's employees time and makes money from the work of its people. The end result is the company makes millions of dollars, and the employees just make it day to day. With network marketing you too can leverage the time and hard work of others - however - you are not taking advantage of your workers because they too have the same opportunity. They are also benefiting from a product or service they want and need. Those who choose simply to purchase the product and not operate a business are happy because they are receiving a quality product at a low cost. With true network marketing nobody takes advantage of anyone regardless of whether you are only using the product or building a business.

Network Marketing and Pyramid Schemes

Pyramiding is when a company pays commissions for recruiting new distributors. Most states outlaw this practice. State laws against pyramiding say that a multilevel marketing plan should only pay commissions for retail sales of goods or services, not for recruiting new distributors. Pyramids are also similar to chain letters where people just spend money based on the promise that other people will put in money that will filtrate back to them and somehow, they'll get rich. A pyramid is strictly a money game and has no basis in real commerce. Normally, there's no product involved at all, just money changing hands. Modern-day pyramids may have a product, but it's clearly there just to disguise the money game.

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. Plans that pay commissions for recruiting new distributors inevitably collapse when no new distributors can be recruited. And when a plan collapses, most people lose their money.

Network marketing is NOT a pyramid scheme. With network marketing, each person can multiply his or her efforts, skills and talents by helping others be successful. Network marketing has proved itself as part of the new economy and a preferred way to do business here and around the world.

Innovation in product delivery

There are many ways for a product manufacturer to get the product from the maker to the consumer. First, there's retail distribution, where the product is created at the factory, shipped to distribution warehouses, then shipped to regional and local retail stores. This is the type of product delivery we are most familiar with. When you walk into a retail store and make a purchase, chances are the product went through this cycle to get to the store shelf. Wholesale Clubs are another distribution model. With a wholesale club, you usually pay an annual membership fee and have access to a "warehouse" full of materials at reduced prices. Here in America, Sam's Club is the prime example of a successful wholesale club. There's also direct sales, like Dell Computers. They sell strictly through the internet and by mailing out catalogs. note: Sam's Club and Dell Computers are trademarks of their respective companies and are not associated with Abundant Wealth or EverydayWealth.

By far the most creative - AND POTENTIALLY PROFITABLE - method of distributing a product is through network marketing. Network marketing is simply individuals selling the product to other individuals and earning commissions based upon those sales. Typically you recruit representatives to use and sell the product. They, in turn, recruit more representatives whom recruit more, and so on. The end result is a structure where you are making monthly commissions on the many individuals that are using the product. Network marketing is just like starting your own business, but without all of the high expenses involved in a typical start-up.

A popular choice

Network marketing is a popular and legitimate form of business. It is a unique distribution method based on providing people with real, legitimate products they need and want at a fair price. Many companies use network marketing to deliver their products to the customer. Today, more and more old-school companies are adding network marketing to their distribution mode. Here is an example of just a few of the companies that use the network marketing distribution method:

It is true that 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. Network marketing is without question the simplest way to run a home based business. Here are some of the many advantages of network marketing:

What to look for in a Network Marketing Company

Reputation - Does the company have integrity? Do they stand behind there products, services and people? Do they make outrageous claims or exaggerations?

Distributor Support - Does the company make its decisions with the representative in mind or the company in mind?

Products and Services - The most successful people in network marketing love their products. It is much easier to soft sell a product when you really do use and enjoy the product. You need great things to say about your products and services.

Ease of Duplication - This is vitally important but is missing in a lot of network marketing companies. Do they leave it up to you? Look for a company and a team that has a system in place that you can use day one in your network marketing business.

Quality Management - Good management is a must in this business, what is their experience. Think about this for a minute how many times in the past year have you heard of a new startup opportunity? We get them every other day it seems like! Most if not all of these companies are started with management that has little to no experience in network marketing. These companies contribute to the high failure rate in this business.

Things to Watch Out for:

Avoid any plan that includes commissions for recruiting additional distributors. It may be an illegal pyramid. Commission should be paid on the products or services sold.
Beware of plans that ask new distributors to purchase expensive inventory. These plans can collapse quickly -- and also may be thinly-disguised pyramids.
Be cautious of plans that guarantee you will make money solely through continued growth of your downline.
Beware of plans that claim to sell miracle products. Just because a promoter of a plan makes a claim doesn't mean it's true! Ask the promoter of the plan to substantiate claims with hard evidence.
Beware of shills -- "decoy" references paid by a plan's promoter to describe their fictional success in earning money through the plan.
Don't pay or sign any contracts in a high-pressure situation. Insist on taking your time to think over a decision to join.
Do your homework! Check with your local Better Business Bureau and state Attorney General about any plan you're considering -- especially when the claims about the product or your potential earnings seem too good to be true.

Not The Work It Used To Be

Until now network marketing was a lot of work. You had to spend a lot of time ordering, stocking, and delivering the product you sold. There was also a lot of paperwork involved. Worst of all, recruiting usually limited you to selling to your family and friends. Not a lot of fun. This is not the case today. Now it is possible to find an opportunity where there is no product to stock or manage - everything is done via the internet. Quite often there is no paperwork to do, no forms to fill out, and even your commissions can be deposited electronically. With the internet there is also practically no selling - if people want and need the product, they will buy it. This generation of network marketing has been revolutionized by eliminating the disadvantages and hassles and by building upon the benefits. This is the beginning of a new generation in network marketing.

The key to being successful is to provide products and services that the average person uses everyday. The ideal products are unique and consumable. Finding the right sponsor is also important to your success in this emerging industry. A sponsor is someone who will guide you and provide the necessary support to help you grow your business. It is the people within an organization that matter most. Companies come and go but the friends and business partners will stay with you always.

Take a look at these Profit Harvest Approved Network Marketing Programs: