I hear this question a lot – “What is Network Marketing?”
And that is understandable because it often gets a bad rap for two reasons.
- People don’t realize that to be successful it takes a lot of work, and for this reason, many give up early and call it a scam.
- There have been a lot of unethical network marketing companies setup that only get the money from new recruits joining instead of from sales of actual products. This is called a pyramid scheme and is illegal.
If you suspect the company you are joining is a pyramid scheme, then please check these FTC guidelines first.
How do you make money in Network Marketing Company?
Now a proper Network Marketing company is defined by Wikipedia as “A sales force who are compensated not only for sales they generate, but also for the sales of the other salespeople that they recruit.”
In other words,
- You make money by selling the Network Marketing company’s products
- You recruit people known as your downline, who also sell the products, which you get a cut of
What attracts people to Network Marketing?
- You can work from home or a tropical island!
- It gives the ability to make as much money as you like depending on how you perform.
- It offers residual income by you recruiting team members and getting a slice of their commissions.
Why people don’t succeed at Network Marketing
I think people don’t seem to acknowledge that it takes real work to succeed in Network Marketing. You could argue it takes work to succeed in most walks of life.
For example, to get a corporate job you have to college and get a degree …
It also takes discipline, and focus. Just because you’re working, it doesn’t mean you can slack off.
When they realize this then they scream that MLM and Network marketing is all a big scam.
I hope that helps with your decision to become a network marketer (or not) If you have any questions, please post below or drop me a line.
As usual, I’m a real person, so please reach out and say hi.