Network Marketing - what this business model is
There is so much confusion over network marketing. What exactly is it and how does it work? This is a business model where you sign-up with a sponsor within a company, have your own home-based business, training, back-office set-up, and it's ready to go.
Basically what you do are two things. You share your products/services, and you sponsor others who will do the same. You "grow" your own business and organization. So for instance, you invite 3 people on your team, each of those 3 people invite 3, each of those 3 get 3, and on down the line. Now you have a large organization, yet you didn't have to sponsor all of those yourself. Each person does their own share, but it all started with you. The company pays you to share their products. And you get a portion of when your team shares their product. These companies do not spend millions in advertising, instead they pay commission to their distributors, who through direct sales, word of mouth, person to person approach, are sharing the products.
There are a lot of people who drop out of network marketing companies, which is why you hear of a high failure rate. In reality, it is not a failure rate at all, it is a "quit" rate. Too many people join a network marketing company thinking they won't have to do any work, it will be easy money. But like all endeavors with big rewards, you have to do the work. When you work for yourself however, it's very different than working for a boss. I hardly consider it hard work at all. How do you know if the company you are looking at is a network marketing company? Just ask. They have to follow guidelines, rules and regulations, and laws.