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Ron Kaiser
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Ron Kaiser   My Press Releases

Understanding the Network Marketing Business Opportunity Model

Published on 11/19/2011
For additional information  Click Here

The network marketing business opportunity model is simple and straightforward, rewarding distributors for sales as well as for recruiting additional distributors. While the commission payout structure may vary from company to company, the ability to build a successful team and earn residual income remains consistent. Few business models are as frequently replicated as the network marketing business opportunity model. The model is known for efficiently selling products and services with the help of independent salespeople or distributors who earn a percentage of each sale. The commission payment plan is multi-level, so there is significant potential for growth and increased income the more members you bring to your team. The word "network" comes from the idea that the independent distributors will be recruiting other distributors, creating teams that work together. This business model is also known as multi-level marketing. Whatever name you choose to call it, the model for network marketing business opportunities is designed and fine-tuned for maximum selling and maximum earning. While there have been some fraudulent companies utilizing the business model who have given it a bad name, network marketing is 100% legitimate. In fact, some of the most successful companies in the U.S. are maintained through the network marketing model. Among the companies utilizing this model are U.S. Sprint, Mary Kay and Herbalife, as well as many others. These companies and more understand that the network marketing business opportunity model allows someone with little money or experience to jump into an already streamlined model and build personal financial security. While you may not have the time or finances to build a business from scratch, you can achieve great success over time with network marketing by simply contributing a few hours each week to the business. While the model is not, and does not claim to be, a get-rich-quick opportunity, it does provide a pathway to increased income and even residual income over time. Each team member is a distributor that is independent from the company, which means the distributor works for himself, sets his own hours and makes and meets his own personal goals. When the team member distributes products or services to paying customers, he receives commission based on the dollar amount of the products sold. The goal of each distributor is not only to sell, but also to recruit other people to become distributors, creating a downline. The original distributor earns a percentage of his downline's sales. As the recruited distributor recruits additional distributors, she will earn a percentage of the sales, as will the original distributor. This cycle continues as long as new recruits continue to recruit new team members. In essence, the network marketing business opportunity model can potentially earn money for distributors, even if they are not personally making sales. They can continue to earn simply through their downline's sales. Network Marketing Business Opportunity Model: Training is Key! The network marketing business model typically places a high level of importance on recruits' training. It is through the proper training and support that these recruits are able to: 1) Learn how to sell the product, and 2) Determine the most effective ways to build a downline Distributors who pour into their recruits often experience much higher rates of recruit success, which translates into increased earnings for themselves. Furthermore, training and connecting with recruits makes it easier to retain them over time. Recruits who feel like they have the support of their distributor is more likely to stick with the company and stay motivated to work the business model. The network marketing business opportunity has proven itself time and time again, turning regular people with great commitment and determination into big money-makers. While it may not be the opportunity for everyone, if you have drive, ambition, and an excellent work ethic, network marketing can be the path to financial security and success. This article is free for republishing Source: http://businessoppsuccess.articlealley.com/understanding-the-network-marketing-business-opportunity-model-1482550.html
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