What is Network Marketing?
Network Marketing is a business development opportunity for individuals to create a business of their own, by building a network of associates through which a company’s product or service makes its way to the final customer.

Profits are derived from commissions on the individual’s consumption and the consumption of their personal network or downline organization (the Multi-Level aspect).

Traditional Marketing involves moving a product through a hierarchy of middlemen from the manufacture to the end consumer. All these jobbers, wholesalers, retailers, etc. earn a profit for handling the product. In Network Marketing these positions are unnecessary. The functions are simplified and the profits that would normally go to the middlemen are instead shared by the individuals in the network! It’s a more efficient way to distribute products – and a more powerful way to earn income.

An Analogy
Have you ever shopped at Wal-Mart? Let’s say Wal-Mart called you and said "We have a problem and we think you are the answer. We want to increase our customer base, but we don’t want to spend money on television advertising where we pay first and hope it works. We want to pay you for referring people to us. This way we only pay after we have our money so it’s a win-win situation for both of us."

"Here’s the plan. If you commit to spending $40 per month at Wal-Mart and refer one person a month that will also commit to spending $40 and they refer one person a month, at the end of 12 months, if these people continue to shop at Wal-Mart, your check will be more than $11,000 per month. Now we know it’s not a perfect world and some of the people you refer to Wal-Mart will not continue to shop here. So let’s say you only accomplish 10%, 20%, or 30% of what you set out to do. Would an extra $1,000, $2,000, or even $3,000 a month be helpful for you? Oh, and by the way, if you keep working your "one-a-month" plan with Wal-Mart, you can set retirement income in place in 1 to 3 years."

Now if Wal-Mart really was doing this, would you participate in this financial plan? I think we all would. Of course with Wal-Mart we would have to drive every month to spend our $40, but what if you could just call a toll-free number and have it delivered to your front door. Even very busy people working 80-hour weeks could find time to refer one person a month.

How often do you recommend a great movie, a good book, an excellent restaurant or even a name brand product you feel is a superb value? All the time! And yet, have any of these companies ever paid you for the powerful, persuasive "advertising" you did on their behalf? Certainly not!

With Network Marketing you get paid for referring people to use products and services from their associated company. If you could purchase top quality products that everyone uses on a regular basis don’t you believe you could easily purchase from a "store" that will pay you back the commissions?

Why buy from large chain stores and Corporate America when you can buy from a company that will compensate you to "share" their products and the concept of Network Marketing? This is your chance to enjoy the benefits of owning your own business and create additional income as well!

Income from Network Marketing – Residual vs Linear
The income received from Network Marketing is Residual. The income you receive for working a certain number of hours is Linear. Below is the definition of each according to the American Heritage Dictionary.

re·sid·u·al ( r¹-z¹j"›-…l) adj. 1. Of, relating to, or characteristic of a residue. 2. Remaining as a residue. n. 1. The quantity left over at the end of a process; a remainder. 2. Often residuals A payment made to a performer, writer, or director for each repeat showing of a recorded television show or commercial. re·sid "u·al·ly adv.

lin·e·ar ( l¹n"¶-…r) adj. Abbr. lin. 1. Of, relating to, or resembling a line; straight. 2. a. In, of, describing, described by, or related to a straight line. b. Having only one dimension. 3. Characterized by, composed of, or emphasizing drawn lines rather than painterly effects. 4. Botany Narrow and elongated with nearly parallel margins: a linear leaf. [Latin lºne³ris from lºnea line; See line 1 ] lin "e·ar·ly adv.

Residual income will continue to come in EVERY month. Even after you quit actively working the income will still keep coming in. The chances it will decrease are close to null since the people in your organization will be receiving this income as well. What are the odds that people will choose to quit redirecting their money towards products and services they need to purchase anyway when they have a substantial income coming in?

Network Marketing vs "Pyramid Schemes"
Illegal pyramid schemes generate income based solely on the recruitment of vast numbers of people. These people must buy something of questionable value in order to "earn the right" to recruit others into the scheme. There is no legitimate product or service to be consumed or retailed to the public. Sometimes, there is not even a company!

A pyramid is a variation on the old chain letter, where a few people that got in at the top win and everyone else loses. It is not a business development opportunity. It appeals to greed alone.

Network Marketing distributes products to customers and services based on their wants and needs. It requires energy and effort to train others to develop the business. This is the foundation of the Network Marketing compensation structure. By compensating "upline" associates in addition to the immediate sponsor, the new associate has a good chance of success because there are several people who have a vested interest and take an active role in creating future success.

What to Look For in a Network Marketing Company

Is Network Marketing Right for You?
Whether you are looking for a way to achieve financial independence, or are simply seeking a part-time income, Network Marketing is your answer.

If you can simply share with others your enthusiasm for a product or service, and are willing to help them do the same, then you can succeed with a sound and well-managed Network Marketing company.

It’s important to realize that you already possess the most vital ingredient for success in Network Marketing. That is, the network of people you already know. Sociological studies tell us that by age 21, the average person is acquainted with over 800 other people.

These are the same people with whom you would normally share things that please and excite you. And they, in turn, will do the same thing with others they know. Networking is the most natural business there is – which is why so many people, regardless of their background, can be successful in this industry.

Network Marketing is THE perfect business! Profitable enough to interest the elite, successful business person, yet simple enough for anyone to grasp and use to create financial freedom.