Why Network Marketing? Understanding the Basic Principles of Network Marketing

Let's get to it! Most people jump into Network Marketing without having the foggiest idea of what it is. Network Marketing is a business model whereby we move products and services from manufacturers to the consumers. Now here's what I like to call 'the twist' - with the twist being, people like you and me are able to get in on the profits!Let's begin by analyzing why manufacturers and Fortune 500 companies are endorsing Network Marketing. First, manufacturers want to get their products into the hands of as many people as possible and as quickly as possible.When it comes to conventional marketing it typically requires millions of dollars in expenses for advertising. It also usually requires a chain of middlemen (wholesalers, retailers, etc.) who want their stake of the profits - thereby adding zero value to the products or service. Not to mention, the competition can be tough. And check this out - even after spending millions of dollars, there's no guaranteed degree of success.In MLM however; the manufacturer introduces his product in the form of a business opportunity or franchise to a small group of independent business people also known as representatives. The company produces and supplies the products at wholesale, develops the products promotional sales tools, handles accounting and processing and more than often offers training.This small group of people introduce the business opportunity and products to others who introduce it to others. Therefore; duplicating and creating a larger than life base of independent distributors and consumers each day, month and year. The partnership between the company and independent business owners is formed and is mutually beneficial to each party. The company saves an enormous amount of money from its distribution, sales costs and advertising expenses with the profits being given to the business associates in the form of commissions and overrides when the products are sold.Now here's where it starts to get real good for you and me: because each individual can only personally move a small amount of product, Network Marketing companies also allow us to sponsor other people into our business where we have the ability to earn override commissions on our personal efforts. This (my friend) is one of the most powerful advantages that Network Marketing over tradition direct selling methods. Network Marketing Success is about a lot of people each doing a little.When you join a network marketing company you start out as the head of your own company; it's your own business with huge tax saving benefits (talk with your CPA). You will begin to build your own network of independent business owners while earning a percentage of their sales. Each partner you bring on is a CEO of their business, just like you, with the opportunity to build their own making money networks directly below them.By now you should have a pretty good understanding of why Network Marketing. Now check this out: Do you know what happens when you double a penny every day for a month? Go ahead, begin doing the math. At day 15, it's grown to $163.84. But by day 30th it has bloomed to OVER 5 MILLION Dollars! Do you know why? It's what we refer to the power of duplication and is by far the most powerful ingredient in Network Marketing. It's also a key component to why Network Marketing is creating financial freedom for thousands of people worldwide. Imagine that you shared your Network Marketing opportunity with Susan in California. Susan has an associate in New Jersey by the name of Andrea. Andrea comes aboard and soon shares the opportunity with Todd from Tennessee. Through Todd's efforts, a Texan, Mike, joins the network.Just by sponsoring one person, you've set into motion a chain of events that now has people working indirectly on your behalf across the nation! And every person (Susan, Andrea, Todd and Mike) is each adding to your commission check. This is a small example of networking and duplication in action.So I ask you, do you think you could find one person each month to join your Network Marketing business? Just one person a month who might be interested in more family time, more security, more happiness and financial freedom?Do you think you can teach that one person a month to do what you do? If you answered 'YES', you can have Network Marketing Success!