A Marketer’s Life

Some companies use a network marketing business model to distribute their goods and services instead of using traditional methods. This type of business model relies on independent sales associates or consultants to sell products or services as well as sign up other associates or consultants. Companies that typically employ network marketing do not spend money on traditional advertising.

You can make a lot of money in a network marketing company if you are able to put together a team of motivated business partners.

There are a few network marketing companies you may have heard of. I have included the details on a couple successful network marketing companies you may already know about

In 1959, Amway was founded in Michigan. Amway is a very familiar company and you probably have heard about this network marketing company. They distribute primarily household items, but have expanded their product line in recent years. In the United States, Amway is now operating under the name of Quixtar. Amway has been at the center of pyramid scheme controviersies. The FTC has ruled Amway is a legitimate business, but has imposed some rules and has fined Amway when the rules were violated.

Another example of a very successful network marketing company is Excel Communciations. Excel entered the telecommunications service industry when it was deregulated and had a very successful run before reduced profitabilty in the telecommunications industry took its toll. Excel made a lot of new business people a lot of money distributing long distance service. Excel really showed how the power of a large network could create huge monthly paychecks. The compensation plan Excel developed was considered one of the best and has been copied by many companies since then.

When you are interested in making money in network marketing, it is extremely important to work with a company that has a profitable compensation plan. It is also important to have a product that sells and that you understand and believe in. Ambit Energy is offering a fantastic network marketing MLM home business and I will use them as an example of how multi level marketing works.

A mlm network marketing opportunity starts with becoming a consultant, sales rep, associate, or whatever a particular company calls it. There will usually be a sign up fee of some sort. A business start up kit is usually included with the price to start.

This is just like a normal job where you get paid more (usually) when you do more work. The thing that you probably don’t get paid for at work is the work that other people do. In a way, a plant manager gets paid for what the people that work for him do, but there is no direct relationship. Unlike most traditional jobs, you also get paid for the sales other business owners make. In Ambit, you get paid for the customers that are gathered by consultants for 6 layers below you. Exponential growth is the mathematic term used to describe this and that is a very good thing when you get paid for every person that enters your organization.

You will usually get paid bonuses when new business owners enter your business. In a true network marketing business, these bonuses are not paid until a certain number of sales is made. This is just like getting a bonus at your normal job for doing something good.

A pyramid scheme as defined by the US Securities and Exchange Commission is a program where participants attempt to make money just by bringing new members into the program. They are illegal and should be avoided unless you really like living behind bars. There are many sites like Pyramid Scheme Alerts that try to educate consumers before they get involved in something unethical or illegal.

One simple test you can do without checking any websites is to look at how money is generated. If the money is generated by sign up fees and not customer purchases, there may be some unethical or illegal elements to the program.

If you choose to try a MLM network marketing opportunity you can be on your way to financial freedom. Just make sure you do your homework before starting.

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