Is Network Marketing For Real

Network marketing has proved itself as part of the new economy and a

preferred way to do business here and around the world. Network marketing

isn't about taking advantage of your friends and relatives. It is a low-

overhead, home based business that can actually offer many of the tax

advantages associated with owning your own brick and mortar business.

These home businesses are part- or full-time opportunities for those

interested in selling products and/or recruiting a sales team. Network

marketing is just a business model, and it really amounts to "micro-

franchising". There's a huge difference between network marketing and

pyramid schemes.

To help you understand what network marketing is, I must first explain what

it isn't.

Network Marketing is not a pyramid scheme. A Pyramid scheme is where

people put up money on the promise that other people will put up money that

will filter down to them somehow. Nothing of value is given in the way of a

product or service. That is the key. You must have a product or service to

offer people and everyone gets paid as a result of marketing those products

or services. No one gets paid for recruiting. That is illegal. Network

Marketing isn’t a brick and mortar business where you need to lease a

building, hire employees, pay workman’s comp. pay benefits, etc.

Now let’s discuss what network marketing IS. The networking model is

pyramid shaped. Meaning: There is someone at the top, who sponsors other

people into the business who also want a home business. Those people do the

same and so on. It begins to looks like a pyramid as the organization grows.

Just like our government looks like a pyramid ie: President, under him are

senators, under them are citizens from their states. Or like a corporation.

Again you have a CEO, Vice Presidents, Supervisors, Managers, Employees.

They all look like a pyramid. The difference is that in a Network Marketing

Business each person in the “pyramid” can make as much or more at the top

person. In a regular corporation “pyramid” there is little to no chance at

all that an employee will ever make equal or more than the President of the

company.

As the process of sponsoring continues, you create compound growth that

can lead to hundreds or even thousands of people coming into your business.

Network marketing is a low-overhead, home based business that can actually

offer many of the tax advantages. Most competent accountants recommend that

everyone have a home business. Write off’s may include part of your mortgage

if you have an office space in your home, mileage used while working your

business, office equipment, phones, travel, etc. Always consult you CPA for

correct deductions.

The real key is this: Network marketing is all about leverage. This

very basic concept is the cornerstone of network marketing. Would you rather

have 100% of your efforts to build a business or 1% of 100 people. Of course

you want 100 people working with you.
Many, many people in network marketing have hundreds and even thousands of

people in their organization. That is Leverage! Leverage your time,

leverage your work and the income will follow.

Sallie Roberts