When asked the question "what is network marketing?" I usually reply by saying it's an amazing strategy to earn a substantial income while enjoying a great deal of freedom and a wonderful life.

Network marketing or multilevel marketing is generally direct sales. Whenever I encounter people who say "oh that is a scam" I always feel sorry for them. They've naturally tried network marketing or know somebody else who has and they've failed to do the work it requires to succeed.

What exactly is Network marketing? - Understanding The basics

Products usually do not sell themselves. It doesn't matter if they're automobiles or widgets. If there's a demand for all those items then they have to be taken out of a warehouse and distributed to the people that want them, which includes marketing. In typical retail sales, for example a supermarket, the manager will call the warehouse and place an order that will go out to his bricks and mortar shop.

Network marketing is no different. The retailer is replaced by a distributor's home where she keeps the products until they are sold to her consumers. Network marketing provides a massive benefit to organizations due to the fact they do not have the expense of renting or acquiring retail outlets and staffing them and so on.

The words "pyramid scheme" are frequently used when people talk bad about network marketing. But think about it. The top of the pyramid represents the most productive people in the business. The base of the pyramid represents all of the thousands of distributors. This can be no different than any other business model. The structure is exactly the same. The CEO is at the top and the people who function inside the little white cubicles or on the shop floor are at the bottom of the pile.

In a typical work environment, people suit up and show up daily and anticipate promotions, the occasional raise plus a couple of days off every now and then. And, hopefully, any raises they receive over the years will be enough to keep up with inflation.

With network marketing you work at your pace and that pace determines how much you'll make. If you get in and get busy and work to lead a team of go-getters like yourself, you are able to rapidly create an enormous network of active distributors, producing a good passive, residual revenue for yourself and your team members.

Lots of people who join a network marketing opportunity are content to simply purchase the products and services at wholesale prices, maybe, retail the products here and there when the opportunity arises. This will earn a few hundred dollars per month. However the earnings possible is considerably more than that. In fact, there is no cap towards the quantity of income that is possible to make or how rapidly you are able to earn it.

It does take a good deal of hard work, but you are doing it for the benefit of the business and your loved ones and not somebody else!

What exactly is Network Marketing? - Leveraged, Residual Revenue

You'll find only so many hours in a week that you have to run your business. During that time you might have the ability to sell on average 50 units of product a week for which you earn a commission. To become profitable at network marketing you must recruit an effective downline team. Maybe after a year you'll have a team of 200, each promoting 50 units a week. Now you are credited with promoting those 10,000 products, and you earn commissions on each.

So what exactly is network marketing? It really is exactly what you need it to be and absolutely nothing more or less. It could be blessing or a curse. It may mean a few dollars in your pocket or perhaps a fortune. It really is all up to you.