Network Marketing, also sometimes referred to as Multi-Level Marketing (MLM) or Relationship Marketing, is a marketing concept in which the promotion of the product line or service is done through network or relationship building, rather than traditional marketing and advertising systems. In addition, a representative earns not only on their own efforts, but also the efforts of those people they bring into the business to help them promote.
One of the best definitions I’ve seen online comes from BusinessDictionary.com:
“Network Marketing: Direct selling method in which independent-agents serve as distributors of goods and services, and are encouraged to build and manage their own sales force by recruiting and training other independent agents. In this method, commission is earned on the agent’s own sales revenue, as well as on the sales revenue of the sales-force recruited by the agent and his or her recruits (called downline).”
Most network marketing companies pay residuals. These business models generally offer a recurring product or service, and the representative who acquired that customer will typically get all allowed revenues from that customer on an on-going basis, usually monthly.
This allows the representatives to leverage their work. They sell once (or recruit once) and get paid again and again for their efforts. This is what allows network marketers to have the potential of earning extremely high residual incomes.
It also encourages the representatives to help each other out. If you have a team, it is in your best interest to assist them in meeting their goals and aspirations, because the better they do, the better you do. Assuming you are with a company that has great products or services, as well as excellent customer support, it is a win-win-win situation.
The growth of your business in a network marketing situation can easily become exponential (viral). As more representatives are adde dot your team, you have more people doing work in which you benefit. It is very possible in network marketing to make just a few dollars a month for a few months, then hundreds for a few months, then thousands for a few months, then tens of thousands each month in a very short time thereafter.
Combining the exponential growth possibilities with the residual income is the best of all possible ways to develop long term passive income by putting in a lot of work now.
If you are ready to take the next step and look for a network marketing company, please click here to watch the video “Choosing The Right Network Marketing Company”.