WHAT IS NETWORK MARKETING

MLM aka Multi Level Marketing or Network Marketing is a low capital start up business. They are also called Affiliate Marketing, Direct Sales etc depending on the structure of the compensation plan.

HOW DOES MLM OR NETWORK MARKETING WORK?

Network Marketing is basically the buying products from your own store (company) instead of buying it from the supermarket, doctor, pharmacy or other companies etc. When you get other people to do the same, the company pays you a sales commission every time the people you have signed up buys the product you recommended.
You need not carry any stocks, have sales staff or office. You just recommend people to the company and the company will pay you the sales commission The company will also deliver the products to your customer(s).

If the customer recommends the product to another friend, you will be paid a Referral Fee and Commission also. For my company, this goes on indefinitely until your weekly commissions reach US$13,500 A WEEK (for my company). Once you have reached this stage, you would become a Professional Network Marketer and are ready to go to the next level (provided you meet the qualifications of being an Executive) where your income can be unlimited depending on your business skills, team growth and activity.
That in a nutshell is MLM. You are paid on your efforts and the efforts of others who do the same under the two lines / teams / legs started by you – all the way down the line. It is possible that you may be earning from the efforts of people you have never met as these are brought in by your friends of friends of friends etc etc. These people are called your “downlines / team / organisations / associates“.

EXAMPLE OF HOW MLM / NETWORK MARKETING WORKS

You plant a single lily pad in the pond on day one.
1. Lily pads double every day
2. On day 30th, the pond is 100% full of lily pads.
3. How full is the pond on the 29th day???
When you understand this idea, you’ll understand the Power of Network Marketing