Building and Understanding Your Network Explained By Roby Robertson At Isnare.com Ezine Articles

Network Marketing is sometimes called Multi-Level Marketing. By definition Network Marketing is defined this way. It is a business-distribution model that allows a parent company to market its products directly to consumers by means of relationship referrals and direct selling.

For years there has been a negative stigma attached to this type of business model. The reason for this is because of the usual bad apples that arise when new things are introduced.

However if you think about it Network Marketing is nothing more than an arrangement similar to franchising, where royalties are paid from the sales of individual franchise operations to the franchisor as well as to an area or region manager. Commissions are paid to multi-level marketing distributors according to the company’s compensation plan. There can be multiple levels of people receiving royalties from one person's sales.

This arrangement is very prevelant via some large companies. Companies that franchise are restaurants, real estate companies, car dealerships and many more.

The best companies are the ones that have a low barrier to entry. What this means is that, unlike the ones above, it is not costly to get involved and the marketing and marketing ideas have already been created and ready to duplicate.

Many people get involved and many people fail. The reason people fail is usually one. They quit! Let's look at an example of how this can be lucrative if worked, even partime.

For the purposes of example, let's say that your failure rate is 80%. I know that sounds high but it is not uncommon. Getting involved in businesses like this take time and the most important consideration is to not quit!

That said, Let's say your organization has only 10 people. All of you are committed to show your product via video or website to at least 3 people every day. This is not too hard to do via websites, articles, email etc.

Making Money online is very confusing. So much information to discern. Understanding the concept of building a downline or network is difficult..

Let's look at some numbers: If all 10 of you show your product in some fashion to 3 people a day that is 30 new prospects each and every day. With some thought, imagine how little time it actually takes to target just 3 people a day. 30 new prospects a day over the course of a year is 10,950 exposures to your product.

Even with a high 80% rate of failure, your 10 person team could generate 2190 new members of your network and that;s if NONE of the new members of your network ever did anything. However, they will do something if the method you teach them can be duplicated.

This would mean over 2000 network members in your 2nd level alone. Now consider you join a top notch program that allows you to recruit up to 5 levels deep. Recommended!!

Your big money comes on layers 3-4 and 5 when those network partners duplicate your efforts. Just think, in time you could have thousands of partners.The key is finding where you fit, making sure it is inexpensive to start, making a decision and not quitting!

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