What is Network Marketing or Why Network Marketing?


For those new to our industry their first question may be: What is network marketing? Network marketing has been around since the 1940's. Network Marketing or NWM, is also known as multi level marketing, mlm, and sometimes direct sales.

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In each of these, the participants earn money from their retail sales and the retail sales of their distributor team. Usually the company has other bonuses based on production and leadership development. Distributors may also be known as associates, independent business owners, ibo's, brokers, or other names.

After asking, what is network marketing, a sincere person is also likely to ask: Why network marketing? There are several reasons why network marketing offers great potential for building a lifestyle of freedom, as well as monetary wealth.

One reason is the ability to recruit a team of distributors through prospecting locally or on the internet. As you train your team to retail and recruit, momentum can, and does kick in.

One of the biggest reasons to be a network marketer, is not likely to be mentioned, by many network marketers. It is, the character building that can occur in network marketing. It has the potential to turn you into more than you ever were. Network marketing has been known to turn shy people into outgoing people. It has helped many people develop their unseen leadership abilities.

"The Perfect Business" ~ where
"The average person can become financially FREE"
-- Robert Kiyosaki

Robert Kiyosaki is a big proponent of network marketing as a business. (See his book with Donald Trump ~ Why We Want You to Be Rich: Two Men - One Message) His new book The Business School, For People Who Like Helping People (Rich Dad's- The Eight Hidden Values of a Network Marketing Business, Other Than Making Money)


"Success in this industry is NOT in finding the right person,
but in becoming the right person."
-- Dr. Forrest Shaklee

*** OMG - this is HUGE and one of the BIGGEST points you can take away from this ***


In addition network marketing has a very attractive component. It is passive residual income. In this model, one can work hard for several years, and then reap the rewards of their labor, year after year, without much labor.

The next thing, that is very attractive about NWM, is the great leverage, without the huge risk and investment a traditional business entails. This leverage is twofold. First, leveraging your time, without the large investment required in hiring employees. Second, by leveraging your small investment of less than a thousand dollars, into an income steam that can turn into thousands per month, for years.

Your small investment in people can grow geometrically as you grow and develop other leaders in your network marketing organization. If you're coming from a traditional business background, this leverage of time, and money without a huge dollar investment, may seem like a dream come true.

To me it was a dream come true, as years ago, I sat down and penciled out my perfect business on the back of a 3x5 card. I was having a vision of the future of business. I just did not know it at the time.

I was frustrated with the huge expenses and risk of my traditional business. Traditional businesses require way more capital than the average entrepreneur has. This leads to either taking on partners, selling a share of your business, or taking on the partnership and risks of a bank loan, if you qualify.

The biggest risk a traditional business person faces when they're first exposed to network marketing, is the risk of not taking it seriously. This is probable. They ask what is network marketing going to do for me?

A businessman looks at the small startup costs and says it can't be true! The possible rewards, are much more, than they may believe to be possible. It may not make sense to you either, on first glance. I have known business owners, with debts of hundreds of thousands of dollars, who found their financial salvation in a network marketing business.

This happens because of the leverage, the passive residual income and the geometric growth a network marketing business offers. What is network marketing offering to you? In a nutshell more than any other type traditional business or franchise can hope to, with smaller risk.

(For additional information on Building a Network Marketing Business check this out)

You get, to hire on team members with very little cost. You pay no payroll. They get paid, from retailing products and services. You override your associates and make money when they make money. As you build a team it all multiplies.

Each of your developing leaders has their own network of distributors and developing leaders. As your team grows, you'll have a strange experience. At times, they just don¹t need you, as their competence is growing. It¹s sweet, to see them developing their leadership skills.

"Any person who contributes to prosperity must prosper in turn."
-- Earl Nightingale

(I highly recommend) The Slight Edge, by Jeff Olson)

This is a good thing, as it frees you up, for more family time, ability to take off for an emergency, or a needed vacation. The bonus is, not worrying about your business while you're away. After all, your team members own their own businesses and that's whose business they¹re building. The side benefit is their business growth helps you too.

Article courtesy of Jay Vandenhoff at Work From Home Network Marketing

~ Thank you Jay, WONDERFUL article! For more great information visit his site too.


Here are some of my personal recommendations about Network Marketing, Direct Selling and Multi-Level Marketing books.


Enjoy and Thank you!

Best of Luck and God Bless!

~ Kelly Staley


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