So, what is Network Marketing, really?

By Ewa

Network Marketing is a business opportunity which is quite old and respected as well. It is not the same as a pyramid scheme, in fact, it is quite the opposite.

The principle behind it is, that every one of us has contact to a certain amount of people, every day. So you can imagine yourself as a center of a circle, with lots (or even not so many) of people around you.

You start using a product, really like any product, nutritional supplements, make-up, household stuff, IT things, whatever, really. You like what you use, and you tell your friends about it. That is the beginning of network marketing.

If you want to do it as your business, you obviously have to do it a bit more professional than that. You advertise your product or your opportunity, and explain other people about it. If they are interested either in the product or in the business opportunity, and purchase from you, than you earn money.

The nice thing about it is, that you can create an residual income with network marketing, and it is not difficult at all. Residual income means that you earn money without actually working directly for it. For example if you get rent every month, that is a form of residual income, since you do not work for that money. In network marketing you start training people, who are interested in your business and teach them everything you know. When these people start to go out there and find their own customers, or “prospects”, they start to make money, and you do as well, because you get a percentage of the income your team produces. That means, as soon as your team is able to work without you, you could actually stop working, but most of the successful network marketer continue working anyway, since they have so much fun doing it!

The plan from which you are paid is called “compensation plan” and this one is different in every company. In this compensation plan it is defined for what type of work you get paid and what you actually have to do for it as well. In some companies you have to sell a certain amount of the product to get paid, in others you get paid a percentage of every customer.

The principle is the same though, the people that are trained by you will produce income for you, for as long as they are working.

On the other hand, you do not have to be afraid of not knowing what you are doing. You just follow a plan that already worked for thousands of people, and which will work for you as well, and there are people, called your “upline” who will teach you everything you need to know.

All together Network Marketing is a reasonable business idea, indeed the only one in which a “normal” person can achieve a six figure income in a reasonable time frame. It has the advantages of your own company without the risk and problems.

————– Ewa is a Paediatrician as well as an Income Coach. If you want to learn about possibilities she can offer, visit www.whyresidualincome.com/ewa