What is Network Marketing ?

Ok So what is it?

It is a business about helping people, often called a people's franchise. It is the unseen business, it does not have giant signs or large offices but yet millions of people are working in this industry each and everyday.

In the 1950's when the Franchise emerged it was labeled a scam, illegal etc. Fortunately a franchise is not labeled as such anymore or you would not be enjoying your favorite hamburger today.

A network marketing business in reality is a business school, you are or should be in a training program from day one. This truly is a Learn while you earn Program. The training if it is quality training is life changing.

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Through out our life, the school systems have taught each of us to be a good employee. Our college system has taught us to be a good manager. All the while our labor is designed to make some one else wealthy. (Here is a Audio you just might Identify with click here.)

There are many different opportunities that in reality are a network marketing company or MLM company, but they refuse to call themselves that. Each of these companies are best described as a non-traditional form of business, so what’s the difference. In a traditional business you have lots of overhead, employees, health insurance for your employees, office rent the list goes on and on.

Non-traditional businesses are generally worked from a home office. This eliminates the high overhead of the traditional business. In today's high fuel prices one can save up to several hundred dollars a month in just fuel costs by not having to commute to a JOB.

Let's compare

Network marketing / Multi-level marketing ( MLM )

They usually offer reasonably priced products and services that people consume in a short time. Generally the commission structure is less up-front then the direct sales companies, but it has a benefit that most direct sales companies do not have and that is residual income.

• It costs less to get involved with this form of business, a few hundred dollars.
• Allows more people to become involved.
• Builds Residual Income.

Network marketing is about sales and distribution, but a different kind of sales. Its more of a soft sale or recommendation then the hard closing type that your accustomed to with the typical salesman or saleswoman in the direct sales.

Direct Sales Companies

These companies are known as seller-based, they market higher priced, usually one time sales items. The benefits of these programs are you make higher commissions but they have very little if any residual income. Essentially if you stop working so does your income.

You are paid directly on what you personally sell, so you have to sell lots and lots of merchandise. This also limits you to the type of people you can bring into your business as the “salesperson” type. Direct sales cost more to get involved with usually in the thousands of dollar range, again limiting you on the number of people!