Network Marketing Online FAQ

What is Network Marketing?

Network Marketing, also known as Multi-level marketing (MLM) is a business distribution model that allows a parent network marketing company to market their products directly to consumers by means of relationship referral and direct selling.
Independent, unsalaried salespeople of network marketing referred to as distributors, represent the parent company and are rewarded a commission relative to the volume of product sold through each of their independent businesses (organizations).

Independent distributors develop their organization by either building an active customer base, who buy direct from the parent company and / or by recruiting a downline of independent distributors who also build a customer base, expanding the overall organization. Additionally, distributors can also earn a profit by retailing products which they purchased from the parent company at wholesale price.

Distributors earn a commission based on the sales efforts of their organization, which includes their independent sale efforts as well as the leveraged sales efforts of their downline. This arrangement is similar to franchise arrangements 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.


Why Should I Join Network Marketing?

Network Marketing is considered as one of the most viable way for everyone who wants to earn additional income by owning a business without having to actually run a company. This way, Network Marketing distributors are driving the marketing and sales of the business, and subsequently earn a reasonable portion of the sales revenue.
This marketing concept is very powerful and widely recognized by many multi-millionaires and even billionaires as one of the strongest business model on earth. In their book titled "Why We Want You to Be Rich", Robert Kiyosaki and Donald Trump both recommend Network Marketing as lucrative wealth creation vehicle.

They even said that if they are to start their business all over again, they would certainly choose Network Marketing as one of their means to riches. In 2007, Warren Buffet (#1 richest man in the world) bought 7 Network Marketing companies in his investment portfolio. These people really understand the power of Network Marketing when in comes to potentially high return on investment.

As stated above, Network Marketing concept is similar to franchise with a certain advantages and disadvantages. Network Marketing is an extremely profitable way to earn recurring passive income. By simply recruiting one downline, you will earn residual commission for as long as he/she remains. You got paid over and over again for doing one-time work. The drawback of this model is that you build your income level in a relatively longer time. This is certainly not an overnight get-rich-quick scheme. On the contrary, in Network Marketing, you build a lifelong passive income over the long run.

Isn't it just another pyramid scheme or cash gifting program?

In the truest sense of marketing, Network marketing, pyramid scheme and cash gifting are basically the same. The differences lie on the legality and products or services.
First, let's look at the pyramid scheme business model. Pyramid scheme is where you pool your money for joining a 'company' but there is no products or services given. The company itself is not really exist and they are not registered as a legal company. They just come up with some company name to impress some credibility. You make money when you refer new members to your downline and pay a certain amount of money. The people who are making the most money are those at the top.

Cash gifting is similar to pyramid scheme but it is slightly more clever. Instead of just pooling the money to a company join, they made it legal by making you send your money as 'gift' to your upline and that's where the term come from. While there is no products or services involved, giving money to someone else is legal according to law and that's why this model is very controversial. You make money when someone decided to join and 'give' you money for admission, but again, no real benefits given other than making money opportunity.

In Network Marketing, you have real products and services. These are not just some craps that you can get anywhere near your house, but they give a benefits to the members. The products or services are usually very good that it can stand on its own without network marketing model needed. This way, you can feel safe to invite anyone who are interested in the products or making additional income in their spare time.


What is this "new age" of Network Marketing?

Gone are the days of cold-calling, hotel meetings and one-on-one presentations. Today's Network Marketing business has evolved and growing at even higher rate than ever before. The story behind this explosive growth lies on the power of internet.
When it comes to reaching to the masses, internet comes at the top of the list. No country limits, no time boundaries and reasonably low cost. Imagine how long and how much will it takes for you to reach 1 million of people using the traditional communications? In internet, provided you know how, you can reach to millions in less than 24 hours!

Taking advantage of this wonderful cyberspace, you can leverage both time and energy spend on spreading your Network Marketing business hundred folds. Nowadays, it will be foolish to not having implemented this media into your Network Marketing system.


Isn't the internet already saturated and there is no more place to do business?

Many people have asked me if the internet is saturated and if there's still a place for them to do a business (especially in Network Marketing)...
Fact is, as long as there are people, there will always be enough room for anyone to start a real business online. Every day, hundreds of thousands (probably a lot more) of people discover the internet for the first time, or go back online again to search for information. Recent statistics shown that around 11 million people come across the internet for the first time EVERY month!

The creator of the internet himself, Tim Berners-Lee, said recently the world wide web is still in its infancy! People all around the globe, especially from India and China, are heavily bombarding the net as you read this. And there are still plenty, if not infinite, places for you to start an Internet Network Marketing business. The internet itself is evolving and many upcoming new era will open up even more opportunities 10 or 20 years from now. Having said that, the best time to start is definitely today.