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Ron Kaiser
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What Is Network Marketing And Why You Should Use It?

Published on 11/13/2011
For additional information  Click Here

You are considering using network marketing and want to know what benefits it might bring to you. There is a lot of buzz about using it in your industry but you want to make sure that you are taking the best approach. There are basically three ways for you to make money. You can have a job and work for someone else where you agree to trade your time for someone else’s money building their business. It is the most common way to make money and the most limiting. Second is working in a profession such as doctors, lawyers, or engineers.This will bring you higher salary compensation but it takes up more time and greater commitment on your part. The third is being your own boss. This is the most exciting way, most flexible way, and the most rewarding way to make money. You are not building any else’s dream but your own. The key benefit of being your own boss is you can leverage the efforts of others to build your dream, you can accomplish more, and earn more. Today the home-based business industry is booming and network marketing is a large part of that boom. Over 49% of all business in the U.s. is home based. World wide it’s a $427 billion industry. Network marketing companies not only pay you for the sales you make but also for the sales your referrals or team make. This is what’s referred to as a viral exposure or marketing. With most traditional jobs or professions, the amount of money you earn is directly tied to how much you work. You don’t work, you don’t work, you don’t make money. Network marketing relies on teamwork. It’s that teamwork that is essential to your success. With a duplicatable system, your team can make you and themselves a hefty annual income. Network marketing uses the principles of leveraging or compounding to make money. I’m sure you’ve heard the question, “what would you rather have, a million dollars or a penny doubled every day? Without thinking, most people would take the million dollars. If you took the penny doubled every day, at the end of 28 day you would have a bit more than $1.2 million. After 30 days, that total reaches over $5 million. It’s the same with network marketing. If you get one person a day into your business for 30 days and they do the same at the end of one year you would have 4,000 people making you money. Multiply that with a good compensation plan and, well you do the math. Network marketing is basically word of mouth adverting. It’s something we all do everyday. Recommending a book, movie, software, or anything else is simply word of mouth advertising. However, you don’t get paid for making those recommendations. With network marketing, you do. Some companies will pay you 50-60% commissions every month just to recommend their product or service. They use the money they would normally use for more traditional ways of advertising, such as radio, TV, or newspaper and magazine ads, or billboard ads to pay you instead. It’s a win-win situation for both parties. This industry had gotten a bad name from time to time. It’s been called a scam and a pyramid scheme. True, there are some scams and pyramid schemes that are disguised as network marketing programs. They want people to give up their money to them without a product or service being offered. Reputable network marketing companies have products or services to sell. Think of Amway, Tupperware, and Avon. Even such companies as IBM, Gillette, Colgate-Palmolive, and AT&T use some form of network marketing. Can this business be cost-effective? The answer is yes for both parties. As I mentioned earlier the company saves money on traditional advertising methods. They pay after a sale is made instead of upfront. This way they’re paying for successful, nor unsuccessful campaigns. On your side is the low cost of starting the business. You don’t have to pay out rent or mortgage for a store, expenses for a home based business is often fully tax deductible. You also save on franchise fees if you want to go the way of McDonald’s. Advertising cost are very minimal with the Internet today. Paid advertising will bring in faster results while free methods will take longer to do. You can run a business for very little per month using the Internet. Expenses will vary depending on your method of advertising. As I mentioned earlier with traditional jobs or professions, income depends on how much you work. With this industry you can work part-time, fill-time, or just as a hobby and still earn more money than with traditional ways with less work, time, and stress involved. Network marketing is not right for everyone, but it is important to consider if it is right for your considering the positives involved with it. Hopefully this article will give you the help you need with making your decision.
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