How Does Network Marketing Work?


Today there are millions of people around the world building this unseen industry called network marketing. So, if your wondering how does network marketing work, you’ve come to the right place.

The DSA reports that there are over 13 million people in the U.S involved in direct selling.

You do not see them but they are everywhere, some probably right in your own neighborhood. It is a business in which common people can invest a small sum of money and rise to staggering levels of financial reward and personal freedom.

Each day millions of people report to work,

…where your employer leverages your time to build his or her business and financial future.

In Network Marketing we help and assist others in building their business. We are also leveraging their time, with each of us is gathering customers along the way.

Hence the name Network. We get paid for this because we are assisting, coaching and helping them to establish their business.

Helping them to reach their goals for their financial future. So Its only right that we also get paid for our time?

Just like your employer leverages your time, through network marketing you can leverage the time of others. What does this mean?

Lets take a look at a typical employer in a service industry with 100 or more employees.

Lets say they have a labor rate of 60 dollars per hour. The goal of our employer is to keep each employee active and busy for each hour paid.

Out of this once all the costs of doing business are factored in such as wages paid, health insurance, unemployment insurance, federal taxes, state taxes, fica taxes, permits, maintenance, housekeeping, the list just goes on and on.

The employer may get to keep 5 to 10 dollars per hour of that labor rate.

In Network Marketing, we have our initial start up costs anywhere from just a few dollars to several hundred dollars.

Where most network marketers fail is they feel that they don’t need a marketing budget for advertising, they don’t seek out the education required to succeed.

One of the important things to remember is, you are in a real business, you no longer have a boss holding you accountable. Your network marketing success or failure is dependent upon you and your actions.

Your primary task will be to gathering customers for your products or services.

And to help and assist others get started in their own business partnered with you.

You are looking at a business model that will take 3 to 5 years to produce the kind of results you’re looking for.

So don’t give up your day job just yet. It will require 5 to 20 hours of consistent time and effort each week to build a successful Network Marketing Business.

It will require a marketing budget, most people simply do not understand how does network marketing work. Nor do not even consider this aspect of their business.

This is a real business this is your business, not a get rich quick overnight program, although it has been hyped by a great many naive marketers and web sites.

Network marketing is based on word of mouth advertising

…which is the most effective form of advertising. Think about it when you go out, watch a great movie, you will go out and tell people about it.

When Sam’s club or Costco moved to your area, you joined their buying club and started telling everyone how much you saved.

This is the power of word of mouth advertising. Major advertising agencies and companies count on this.

This is one of the things that we do as network marketers. The major difference is that we get paid for our word of mouth advertising.

One of the most often asked questions is, will I have to sell products and services? That answer is of course yes.

Think about it, no one likes to have a salesman or woman come to the door and sell them products.

We hate to go to the automobile dealerships.  When you arrive, you’re swarmed with 5 different salesman all trying to get you to sign the dotted line!

So how are we as a network marketer different? We recommend products or services that we like and personally use.

If we know it’s good and personally use it. Then recommending it to our friends and family is very easy.

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