I was doing some research today about what to write my next blog post on as I wanted to know what you fine people wanted to know? What questions you were asking and seeking answers to and I discovered that a fair amount of people were asking this question: Network Marketing how does it work?
So because I am such a great guy and love to help you guys out I am going to tackle this question in this post.
I am going to explain exactly how network marketing works AND I am going to give you some tips and links to other blog posts were you can learn how to crush it in this industry and create a serious residual income for yourself.
Alrighty then, let’s get into it…
A Brilliant Business Model
Network Marketing is simply just a business model. A brilliant one, but simply a business model. A model that a company can choose to use to market and distribute or bring its products to market.
It allows the company to cut the middleman out and go directly to the end user i.e. the customer.
Saving boat loads of money by doing so.
Instead of fighting with their competitors to get their product placed on store shelves they bypass selling their product in the store altogether and instead they sell it directly to their customers.
By cutting out the middleman they save big bucks. They in turn are now able to use this saved money to market their product in a completely different manner.
Instead of advertising their product on TV, the internet, radio or in newspapers and magazines they use the most powerful method of advertising known to man… Word of Mouth!
What they do is create a business opportunity for everyday people like you and I to come on as independent distributors for the company.
As an independent distributor, your role is to go out and find customers for the company. When you find a customer, the company sends the product directly to them and they pay you a commission for the sale.
A Large Team Equals A Large Check
The company also allows you to sponsor other independent distributors. Sign up other people who want to build the business like you are doing.
When you do this these new people are attached to you, they become part of your business or your team, typically referred to as a downline.
Every time they make a sale you also receive a commission.
These new distributors can also sponsor more distributors which in turn grows your team and builds you a larger downline. You receive a commission from all sales made within your team or downline.
So your goal is to build as large of a team as possible.
In fact your goal should be to have a team that grows without you. You get it going the right way and it takes off on its own, growing exponentially forever, earning you commission off all of the sales made within it.
That takes some time to accomplish no question, but when that happens there simply is no lifestyle on planet earth like it. It is what is referred to as walk away income. True residual income that continues to be paid to you for the rest of your life.
It is win win for everyone.
The company is happy because they are selling boat loads of product in your organization.
Your team is happy because they are also building their own organization and earning the commissions from the sales also.
And you are happy because you have a very profitable business on your hands!
Let me give you an Example of how this works…
Example of How It Works
Your friend Mary-Sue recently joins a network marketing company that sells weight loss products.
She asks you to take a look at the product. You take a look at it, you think it sounds pretty cool, so you buy the product. You use the product and you lose 20 lbs., you are a pretty happy camper.
Mary-Sue than shares with you that there is also a business opportunity associated with the product.
She explains you can join as an independent distributor and by simply doing what she did, which was sharing the product or opportunity with others you can make some money, maybe make enough to pay for your product or perhaps if you really go for it a serious 6 or 7 figure income!
So you join up…
You go and share the opportunity with 100 friends. 15 of them decide to join with you. When they join they order product, you make a nice commission off the product they order. You are happy!
Those 15 go and share the opportunity with 100 of their friends. Let’s say they each get 10 people who join. Your team of 15 has now turned into a team of a 165 people.
And guess what? You now also earn a commission off the sale of product to those 165 people. Your pay check has taken a nice jump.
Those 165 people each go and find 5 people who want to do the business also. Your team has now grown to a team of 825 and you are earning a commission off all sales of products from all 825 people.
You can see how this can start to grow exponentially.
Now of course the numbers don’t work exactly as I just shared.
Some people will sponsor a ton of people, some people will sponsor a few and other people will do nothing. But if you are consistent and treat the opportunity like a true business it is going to grow. And once you hit a certain level it will take off exponentially on its own along with your pay check!
See why I call it a Brilliant business model?
Let’s take a look at how you get started and what you do to build your business once you are signed up as an independent distributor.
Step #1 – Pick a company.
There are lots of companies in the network marketing industry. Some are great, some are good, some are OK, some are terrible and some are plain and simply scams pretending to be good companies.
You have to know what to look for. I have done a complete training on picking the best network marketing company.
Check it out here:
Step #2 – Get trained.
It is crucial to your success that you learn how to build this business the right way. Success in this industry is not like any other industry. It is unique to itself.
You have to learn the right way and wrong way to build your business. So take the time to learn the right way. I have loads of training on this site that you can use to learn how to get started the right way quickly.
Here are a few places you can start:
Step #3 – Build fast.
This business is so much easier to build fast then slow. The reality is that your success is a numbers game. The more people you share the opportunity with the more people are going to join.
You want to get to those people fast and start earning a nice pay check as quickly as possible.
Here is a training to help you get off to a fast start:
Step #4 – Get good at prospecting.
Prospecting and sponsoring new distributors into your business is the name of the game. If you get good at just that one skill set your success is not a matter of if but a matter of when because it will happen for you.
The great news is that prospecting is a learned skill and anyone can become good enough at it to achieve success if you give yourself the time to learn the skill.
Check out these training to start mastering this skill set:
Step #5 – Don’t quit
The only way you can fail in this industry is if you quit. Achieving success is going to take longer for some than others. Some get there in 6 months; others get there in 2 – 4 years.
What you need to realize is that the time is going to pass anyway, why not spend that time learning and working towards creating an incredible future and a lifestyle?
If you stick it out you will figure it out.
Was Your Question Answered?
Well I trust that helped you to somewhat get an understanding of how network marketing works.
If you have any questions feel free to drop a comment in the comment section under this post And I will be happy to help you out.
Also, if you got value from this post a comment saying so is always appreciated.
Cheers to YOUR Success
P.S. You will see on the side of the blog a sign up box to my FREE prospecting boot camp. As I explained in this post, prospecting is the #1 skill you want to master, and if you do you will create a serious residual income for yourself. My free boot camp will provide you with all of the skills you need to get really good at prospecting and earning that big check.