[gluckspilz]

CLICK HERE FIRST: Giving Away A Brand New Website. Absolutely FREE! No Credit Card Required

Alarm bells are set off, when people hear the words “Network Marketing”, which has also been known under various other names such as “Multi-Level Marketing”, “Referral Marketing” and “Word of Mouth Marketing”. The reason for the alarm is that this business model is often confused with pyramid schemes. So, what is the difference between network marketing and pyramid schemes?

Well, for one thing, pyramid schemes are illegal, while network marketing is legal. A pyramid scheme is a business that is non-sustainable and involves the exchange of money through a sign-up fee. However, unlike network marketing, pyramid schemes do not actually have any product or services. This is the reason why it is a non-sustainable business and hence illegal. It is impossible for people at the bottom of the pyramid to make money, because there is no product or service. Pyramid schemes can seem very attractive, but one must be careful and do some research on it. Many people have fallen prey to this and lost many thousands of dollars in the process.

Now that you have a better understanding of what a pyramid scheme is, let’s turn our attention back to Network Marketing. As mentioned before, network marketing is essentially a legal business model, which is utilized by multi-level marketing companies. The confusion with pyramid schemes exists because network marketing follows a similar concept. However, there are two important differences. The first is that members in this multi-level marketing model are able to earn income through the company’s products or services even without recruiting new members. Secondly, members at any level in a multi-level marketing company can advance past the people under whom they have joined. Thus, Network Marketing is not a scam. It is a legit business model.

As you can see, even though network marketing and pyramid scams may appear similar at first, understanding the way each of these businesses work will clear up the confusion. Apart from this, a further reason why the legit business model has gained a bad reputation among the public is possibly due to some online business people inappropriately discussing business in social situations, coming across as desperate or overly focusing on new recruits and thereby neglecting existing members. This is not to say that all online marketers behave this way. However, even a small minority can hurt the reputation of the rest.

[gluckspilz]

CLICK HERE FIRST: Giving Away A Brand New Website. Absolutely FREE! No Credit Card Required

Network Marketing - How does the network marketing model work?

Now that you understand what network marketing is, let’s talk about how it actually works.

The main reason, why some companies follow a network marketing business model, is because advertising costs are greatly reduced. Advertising can be very expensive! Instead, a company may elect to reward members for “spreading the word” usually through a monetary incentive. Thus, there is a drive for existing members to recruit new members in order to sell or use the company’s product or service. It is a win-win situation for the company and its members.

There are certain elements that legit network marketing companies have in common. For instance, there is usually little or no enrollment fee and the company explains itself transparently in regards to its purpose, products and services prior to signing up. This ensures that there are no hidden traps. Further, members mainly make an income through selling the company’s products or services and they can earn at any level of the model, even without recruiting new members.

Such elements are important because this allows all members to have a fair chance to earn money from the network marketing company.

When a new member joins a network marketing company, they usually pay an initial joining fee. Once they do so, they gain access to training programs, sales and management tools for building their own business and a certain amount of products. The sponsoring distributor is entitled to a commission through this sign up. Usually, the amount of products accessible to a member depends on their membership level. The more a member spends upfront, the more products they receive and the higher the commission earned by the sponsoring distributor. This makes sense, doesn’t it?

Nowadays, you can join some network marketing companies at a very low start up fee. This means that you do not have to purchase any product, but you still gain access to training and business tools. If you join this way, the sponsoring distributor does not receive any commission. However, they gain a new distributor and if you decide to upgrade in the future, they will be eligible for commission.

Essentially, with the 100% money back guarantee over a specific period that most companies offer, there is virtually no risk to you! You can try it out and then decide for yourself if the products or service will be beneficial to you.

[gluckspilz]

CLICK HERE FIRST: Giving Away A Brand New Website. Absolutely FREE! No Credit Card Required

Network Marketing – How do I choose a network marketing company?

Before joining any network marketing company you should do some research on them to avoid falling prey to attractive scams. There are some pyramid schemes out there that appear to follow the network marketing model and hence it can be difficult to single them out as scams.

The two big questions that should always be asked are firstly, whether the network marketing company of interest offers a legitimate product. What does the company offer you other than the potential to earn a lot of money? If it does not offer you any products or services, or if the price for training tools is overinflated, the company may be a scam. The second important question to ask is whether you earn commission by distributing a product or by recruiting. You should be skeptical if the company pays you solely for recruitments.

There are other factors, which can help you make an informed assessment of the network marketing company. Even though many people reckon that the income potential is greater if you join the company early on, this is usually not the case. So, it is much safer to join a company that has been around for some time, in which case, it will usually have a proven track record.

Moreover, consider if the company offers a money back guarantee in case you are unhappy with the products or simply change your mind. Most network marketing companies will give you a complete refund if you opt out. Also be wary of get rich quick schemes. If something sounds too good to be true, it most likely is. Even though there are success stories of gurus who make millions of dollars overnight through network marketing, this does not happen very often in reality. Consistency is the key!

A good network marketing company will provide you with a solid training system. Usually, there are strong leaders who look after their team members and ensure their success. So take your time to research the type of product or service the company offers and the mode of training provided. Also research well-known leaders associated with the network marketing company. All this information can usually be found on their website, but you can also simply Google the company’s name and most likely there is a forum or blog where the products have been reviewed.