What is network marketing?

Network marketing, also known as Multi-level marketing and more recently known as Team marketing is an ethical way to build an extra income by using and moving unique, high quality consumable products or services through a low cost, low start-up business model.

It's an excellent way to start a business working from home on a part-time basis, ie, anything from 7-15 hours a week. Depending on the time available to you, you can build up the business from home where you income from you home-based business equals your regular income. When this happens, it is the time when most people would then start to work this home-based business on more than a part-time basis, about 20-30 hours a week, depending on what level of income you wish to achieve.

Take a look at some disadvantages of working for someone and advantages of running your own business:

 

Disadvantages	Advantages
Working to build profits for employer	Profit are all yours
Expenses have to be paid from taxed income	Most expenses are tax-deductible
Inflexible working hours	Flexible working hours
Can't choose who you want to work with	You choose your customers and team members
Only get paid when you work	Can develop a business that pays you even when you don't work

Excellent products and services

Most good network marketing companies have excellent and unique products and/or services.
The key point is that you have to be a product of the products, ie, you have to use the products or services. Once you do that and have found not just health benefits, but cost savings as well, you will want to tell other people about it.

This is where the networking comes in and you start to build a team by bringing other people into your team or network. You advise them to use the products like you do, so they get to purchase the products at wholesale prices like you do, and enjoy the health benefits and cost savings like you do.

However, because you introduced them to the company, the company shows their appreciation by paying you a commission on the extra turnover that has been generated. Obviously, the company can only pay out when products have moved.

Benefit from Reduced Costs

Traditional marketing is a MULTI-Stage process. At each stage, someone takes a share of the profits. Up to 95% of the cost of many products is taken up by promotion, distribution, retail end event sponsorship.

Network marketing is a 3-Stage process. The product range is sold directly to the consumer via the distributor. As a result, 68% of the product price is available to the distributor in the form of retail profit and bonuses.

Win-Win Situation

It's a win-win situation all round:

It may look very much like buying into a franchise. Yes, there are some similarities, but there are also big differences listed below:

 

Franchise	Network Marketing
High start-up costs	Low & affordable start-up costs
Inventory	No stock holding
Premises	Home-based
Business needs you in it	You leverage time by building a team to work with

Build Your Team

To take it a stage further, now that you can see how the money starts to come in, you introduce more people to join the company in your team and you also suggest to the people you introduced to do the same as you, ie, use the products and recommend who they know to join the company in their team. So, as long as products continue to move from the company, the company will show their appreciation by paying you and the people you introduce all commissions.

Example of Network Marketing

Take Forever Living Products as an example. This company offers a very wide range of products that can very easily replace everything you buy on the high street. Why not buy from your own shop and enjoy the cost savings instead of putting profits into someone else's pockets?

Please visit our "Explore Freedom" website for some further inspiration.

I work with 3 well established, ethical and successful companies:

The Aloe Vera Company

The Healthy Chocolate Company

Money saving utilities and shopping

Knowledge is King has a very wide selection of material to help you understand Network Marketing better.