What is network marketing?

If you've been looking for a home-based business, you have undoubtedly come upon business opportunities that are referred to as Network Marketing programs. Also known as Multi-Level Marketing or MLM, Network Marketing is just a way for businesses to distribute their products.

Rather than using the customary distribution process that moves from manufacturer to warehouser to wholesaler to retailer to end customer, Network Marketing companies use a network of independent marketers to move the products directly from the manufacturer to the end customer.

The independent marketers earn a percentage of the profit on all sales they make. While it's possible and highly recommended to earn an income by selling to customers directly, the real power of Network Marketing is that you are allowed to build a downline of other independent marketers below you, and earn a percentage of their combined sales.

Think about it. You may be a great salesman and have a few dozen good customers. You make your percentage from all their purchases. Great. But wouldn't it be better if you had a downline of 10, 100, 1000, or even 10,000 other people also making sales and you earning a percentage of all those sales? Of course it would.

There is limited amount of time any one person can spend working. By having a downline working with you, you can multiply that time. Imagine having a downline of 1000 people each putting in only an hour a day five days a week. In one month 20,000 hours of work would be done. It would take one person 10 years to produce the same amount of work.

Now you can see how it's possible that successful Network Marketers can make huge monthly incomes.

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