Perhaps you have heard of the awesome money making potential of network marketing, or MLM, and you are thinking about joining a program. In this article you will learn the reason for that potential, and how the process of duplication is the key to making it a reality.
The terms, MLM and network marketing are different ways of saying the same thing. MLM is the older term. It stands for multi-level marketing, which emphasizes the general payment structure. Network marketing tends to emphasize the fact that you are working as a team. You network with them.
It is interesting how many people mistakenly believe that these types of companies are not legal, simply because their payment structure is similar to pyramid schemes. The big difference is network marketing companies sell actual products and services, so that makes them absolutely legal.
They are totally different entities. To be against the idea of network marketing because of the existence of pyramid schemes does not make sense. It would be like refusing to ever get in a car, because cars are so often used to rob banks and commit other crimes. (That would be silly.)
So, where does the potential to create fiscal freedom in network marketing come from? It has to do with the fact that you work with a team of of people who join your organization under you. You will earn income, several levels beneath you, whenever anyone on your team, sells a product or buys a product. Similarly, when you buy or sell something, people above you are benefited as well.
The real success stories in network marketing come from the process known as duplication, which can be extremely powerful. Duplication is what happens when you refer someone to join under you and you teach them to be able to refer others — and then they do, and teach their referrals to do the same. Duplication is downright powerful.
When there is a lot of duplication over the course of time, the creation of wealth is a distinct possibility. If you can not create duplication, it might still be possible to make some money, although not nearly as much.
Let’s look at a hypothetical example. Say that the minimum monthly purchase is $50. You will always make the most commissions on your first level, direct referrals. So, imagine it is $10, per $50 sale. Levels 2 through 6 might pay, $5, $4, $3, $2, and $1.
Duplication is so powerful that if you have a ton of it, you might make a lot of money, even if you only counted the sixth level — which is only a dollar profit. On the other hand, if you are great at referring and terrible at teaching others how to refer, then even without duplication, you could make some residual income, just from the $10 first level payments alone. However, it would not be anything like what duplication would bring you.
Why haven’t you found the simple ways to make money? Get all the information at http://businesstm.com.