The rarely told truth about network marketing

When people hear the term Network Marketing, they often think of multi-level marketing companies, like Amway or Herbalife. But there are many other forms of network marketing that are rarely talked about but offer great opportunity for people looking to create a home-based business.

So what is network marketing? "Network Marketing is a business model for retail sales in which a company rewards sales agents who recruit new agents." It's one of the most common ways to make money outside of owning your own store.

How does it work? A company will pay commission on the sales of product by the salespeople that they recruit. The more successful a salesperson is, the more product they sell and the higher "rank" or level in the company they are able to achieve. Once a salesperson becomes ranked as a high level official in the company, they are able to make commission based on their overall rank. This may include being paid on all products sold by other people that they have recruited into their organization and any products sold by all of their downline members as well.

Network marketing companies can often provide you with tools to help build your business, such as websites, training and speaking opportunities at conferences. The training is designed to help you learn the skills necessary to build a healthy business.

The business has no minimum sales requirement, so it's not hard to get started. However, once you get a certain level of revenue as a "downline" distributor, you will become eligible for commissions at levels above that amount. For example, if your downline recruits 10 people and each of those people recruits 2 more people, then your downline will be eligible for commissions up to $500 per person on the $2,500 sales limit from those two individuals (10 x $500 = $5,000). If the people you have recruited go on to recruit others, you will be eligible for commissions on the sales of those other people in their downline.

What products are available? There is an overwhelming variety of products available, which makes it easier to find a product that you are confident in using. Network marketing companies often sell nutritional and health supplements, personal care products, household cleaning items, and many other types of items.

A Few Examples: Organo Gold is a Network Marketing company that sells weight management drinks and snacks around the world. You can choose to represent the company as an Independent Consultant or become an Associate (a distributor) for free with no obligation to purchase their products or services. Tupperware is another example of a Network Marketing company that guarantees you success. At Tupperware, you can either sell products as an Independent Consultant or earn income by becoming an Associate and having your customers purchase through you. Various MLM companies offer health and beauty products, jewelry, pet food, household products and more. Your business opportunity may be just around the corner from where you live!

Is it legit? Yes, network marketing is legit in the sense that it's not a scam or pyramid scheme. If a company genuinely doesn't want to provide value to its customers, then it shouldn't be in business at all. A good network marketing company will always strive to build its business with the best interest of the customer in mind.

However, not all Network Marketing companies are created equal. You want to be careful and do your homework before you join one so you can avoid having it be a waste of your time. Here are some things to watch out for:

Churn rates: What percentage of people fail and quit within the first few months? And what is the life expectancy for someone in a network marketing company? Will I have tons of competition in my area? Just because a certain MLM company has the potential for great income, it doesn't mean that you'll be successful with it. So, be careful and do your research. Ask questions like: How soon can I achieve my goals? How easy is it to make money? Is there a training program for me to follow? What type of support and leadership are available for me?

How does the compensation plan work? Compensation plans vary widely from company to company. So, it's important that you know what you're getting in to before you join any MLM business. Many MLM companies offer "dual level" income, which means that you will receive your commission percentage on all sales made by people in your downline organization. Make sure that they clearly define the compensation plan so that you understand everything upfront before joining their organization.

You also don't want to be in a position where you are completely "on your own." Having a good support team is important for a long-term success. This can be as simple as meeting with other members in your home area regularly or working with someone who may be able to give you marketing help. It's also beneficial if you can find a sponsor or mentor that will act as a role model and provide you with guidance on how he or she started his or her business.

Will the company support my family? The type of company you join will depend on how much time and energy they want to devote to recruiting. If you are able to dedicate a lot of time to the business, then you may be able to help build it into something that can support your family. However, if you want to be able to focus on supporting your family and providing for yourself first, then you may want a more passive opportunity such as creating content online or writing eBooks.

Is it easy to get started? If you're looking for a simple business opportunity where you can make money right away, then network marketing is not for you. It takes time and effort - lots of energy and motivation - to build an effective network marketing business. However, once things have been set up properly, it can become passive income for many people. So, work hard and be disciplined.

What is the income potential? There are a lot of statistics that are floating around out there about how much money you can make in network marketing. However, the only way to know for sure is by joining and building your business. You may earn more or less than what you've read, but if you focus on helping others to succeed, then you will earn more over time.

Is it worth it? The short answer is yes! Network marketing is a great opportunity to help people get healthy and earn an income.

Conclusion

With any business opportunity, it's important that you conduct your own due diligence and research to see if it's a good fit for you before signing on the dotted line. Network marketing is no different from any other business opportunity out there. However, if you're having a hard time making money in your current job or career, then I would highly recommend you consider network marketing as an option for getting to the next level in your life.