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. 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
