You may have heard the term "Network Marketing" but aren't quite
sure what it is. Network Marketing is also referred to as MLM
or Multi-Level Marketing or, you also might have heard the term
"Party Plan Company". All of these terms essentially describe
the same kind of business; a business that allows you to sell their
products from your home or through home parties while earning a
commission off of your sales. Additionally, you can earn
extra income with your network marketing company by bringing other
people into your company and signing them up to be on your
team. This means that you will also earn a residual income
from any sales they might make.
How to Get Started in Network Marketing
Usually a person is introduced to a network marketing company by
attending a home party. You may have been invited to a
friends or a neighbors home in order to view and possibly purchase
some of the products from the individual involved in the
company.
Typically they'll talk to you about the product and have some
samples available for you to look at, touch, smell and use (if
possible). You'll receive a catalog which has all of their
products available as well as an order form to purchase any of the
products you happened to like.
Additionally, you'll also be presented the opportunity to join
the business yourself. Most often the representative of the
company will give you an overview of the cost of the products, how
much you sell them for, what percentage of income you could expect
to receive as well as other "perks" that the company offers such as
trips and award ceremonies.
It's easy to get caught up in the excitement while the
representative is giving their talk - you have the products in
front of you, if you've decided to purchase a product then they
know you already like the products they offered and the income
potential can look mighty enticing - especially if you're
struggling financially as it is.
Just remember, there are a few pointers you need to consider
before putting your hard-earned cash into a network marketing
company. You can see what these
are here.
But you don't have to wait for someone you know to have a party
before you become involved in a network marketing company, you can
also check out our listing of network marketing companies here at
ConnectingWAHMs.com.
Although network marketing companies are sometimes mistakenly
referred to as "pyramid schemes" it's important that you know that
MLM companies are completely legal and legitimate
businesses.
Network Marketing Company or Pyramid?
No one wants to be taken advantage of, and as such, there are
many individuals who steer clear of a network marketing company
simply because they're afraid they'll get taken by a pyramid
scheme. Here's how to spot the difference between a
legitimate company and a pyramid scheme:
Commissions are based on the number of distributors
recruited;
Most of the products that are sold are sold to
distributors and not the general public;
The products may be lackluster; they may make promises
that sound too good to be true;
You are pressured to sell a certain amount each month
and recruit a certain number of new representatives during a
specific time-frame.
There are many legitimate network marketing companies available
and some have been around for many, many years. The important
thing is that you do your research. Check out our list of dos
and don'ts when considering a network
marketing business first. Whatever you do, don't be
pressured into joining a network marketing company...make good
decisions for yourself.
See Also...
Dani
Johnson - Avoiding Failure in Network Marketing
