Wednesday, March 29, 2017

What is Network Marketing?

What is network marketing?

Network Marketing - The Best Business in the World

Network marketing, also known as teammarketing or recommendation marketing, is an effective and proven business model that uses personal recommendation to promote and retail a company’s products or services.

Illegal Pyramids (Ponzi) vs. Legal Multilevel Marketing MLM Companies

Multi-level Marketing (MLM) is a marketing strategy designed to promote their product by through distributors, offering multiple levels of compensation.

Pyramid schemes are, however, fraudulent schemes, disguising as an MLM strategy. The difference between a pyramid scheme and a lawful MLM program is that there is no real product that is sold in a pyramid scheme, and commissions are based only on the number of new individuals one introduces into the scheme.
There are two additional important factors to consider: the only guilty party in the Ponzi and pyramid scheme is the originator of the corrupt business practice, not the participants (as long as they are unaware of the illegal business practices). Secondly, a pyramid scheme differs from a multi-level marketing campaign which offers legitimate products.

Read more: What is the difference between a Ponzi and a pyramid scheme? | Investopedia 

Legitimacy of Network Marketing

The Federal trade Commission (FTC) has set guidelines that help consumers discern legitimate plans from illegal ones. The difference between MLM and pyramid schemes under these guidelines are as follows:
  •  Sales of actual product or services to consumers, MLM offers products whereas Pyramid schemes do not
  • Commissions are paid on sale of products and not on enrolments; MLM has a hierarchical commission set up on the sales of products, whereas pyramid schemes are based solely on new enrolments.
Company buys back inventory from participants at the time of termination, pyramid schemes do not have any inventory.

Robert Kiyosaki on Oprah - Why People Should Join A Network Marketing Company

    Forever Living Products

    Forever is a well-established, structured network marketing company, designed to enable people to develop their own independent businesses. Instead of investing large amounts in advertising, Forever generously rewards people for sharing its products and business opportunity with others.

    This lucrative business structure offers many incredible financial benefits that traditional business models cannot match.

    Own your own business.
    With network marketing, you’ll enjoy the freedom and flexibility of owning your own business. As an entrepreneur, you get to choose where and when you want to work. Instead of working hard to make your boss rich, all of the hard work you put in benefits you.
    No risk. Minimal overhead costs.
    Traditional businesses typically cost many thousands of pounds to establish and often involve getting into debt. Starting your own network marketing business means you do not have to borrow money or hire employees, and you’ll have little overhead cost. It’s that simple.
    No income cap.
    Corporate jobs limit your pay range based on the market standard. The network marketing industry, however, does not cap how much you can make. The harder you work, the higher your financial rewards.

    How do we do network marketing?

    Network marketing is simple, all you need to do is use the products, share the products and connect with people, build a team and duplicate.

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