Network Marketing Business Model Proves Profitable For Income Seekers
The network marketing business model has been around quite awhile and proves to be profitable for income seekers. The network marketing business model is basically independent representatives that bring the product and/or service to the people rather than the people coming to a store. People earn a commission on product sales and their team underneath them that they sponsor.
Network Marketing/Pyramid Confusion
Some people in the past have confused network marketing with pyramid schemes, but that is an insult to any network marketing company with integrity. Besides one could consider the corporate structure of a CEO, some managers below them, some supervisors below them and then all the masses as being a pyramid. There are similarities, but the difference in both is that there is a product or service of value involved. They are real companies doing business.
Network Marketing Business Model Proven
It is because the network marketing business model has proven profitable for income seekers that so many con men (and women) have come out of the woodwork to try to get peoples’ hard earned money. People on the other hand should realize that getting something for nothing is not likely and be wary. Con men though have masked their schemes in various ways to make things appear legitimate, so beware.
It’s A Business Like Any Other
Back to the good stuff. If you are looking at the network marketing model as a way to do business, be reassured that the network marketing business model proves profitable for income seekers, but it is imperative that you understand you are not going to get rich in a day. If you were looking to start a business selling shoes in a storefront in your neighborhood, you would do the research, cost analysis, apply for appropriate licenses, search for your building, possibly attain a business loan, get educated on your particular business, gather inventory and supplies, hire employees, get an accountant, do some advertising and put in lots and lots of hours for not much pay at first until your business grows. It is a process.
Being a representative or distributor for a network marketing company will take away most of the hassle and a large amount of the financial risk of a traditional business. Yet, the concept I am trying to get across is the same. It is a business that involves steps to go through. It involves a great deal of work, however, you can do it part-time before quitting your current job. It also takes time to build just like any legitimate business. I think many people are still under the illusion that people can get rich quick. That being said, there are many that make comfortable incomes and get wealthy in a relatively short time. It can be done with a good network marketing company. There are things to look for that will more likely enable this. Remember though, it is still a process and it takes time to build, some longer than others. Here are a few things to look at.
- A network marketing company with high standards and a good track record.
- A product that is needed in the marketplace.
- Products and/or services competitively priced.
- Compensation plan that rewards its distributors for their effort.
- Compensation plan that allows income to start flowing even at the beginning and a good plan for residual income.
- Compensation plan that does not allow random changes that can take away distributor profit.
- Excellent training and ongoing support.
Network Marketing Business Model Compared To Compound Interest
One could compare the network marketing business model to compound interest. With compounding, you start with a principal amount. You put the work into your business week after week. This is your principal. Then after a few months you have some income or”interest”. Some people are added to your team that are making money, kind of like more “interest” added to your principal, then those people are working their business and now you have “interest” upon “interest.” In other words, sort of like compounding. You put your initial principal deposit down, then as you build your business, compounding earnings start coming in. It is a beautiful thing actually, when everyone is taking their business seriously and doing the work. If you compare the basic concept on how compound interest works, it is easy to understand why the network marketing business model proves profitable for income seekers year after year, decade after decade and even over the last couple centuries.