Network Marketing, 'MLM', and Multi Level Marketing are all terms that refer to same type of business model. This industry has had more than it's share of scumbag crooks and con artists that have used and abused concept. However, if you do your homework and get involved with a legitimate network marketing organization, this business model has exceptional income potential.
Network Marketing can produce outstanding results if you know a few simple concepts, understanding of which is critical to your success.
Network Marketing, MLM, and Multilevel Marketing are unlike franchises or conventional businesses in that they take advantage of all three of important, yet misunderstood principles of:
1) Leverage (of Time and Money) 2) Residual Income 3) Geometric Growth Through Duplication
Unfortunately these principles are not well understood by many of people that undertake network marketing. And that's just one of many reasons why so many fail at network marketing. There are lots of other reasons, and it would take volumes to cover them all. But this is one of more common ones. Because if you don't comprehend and believe in these principles, it's impossible to help others fully understand and appreciate them.
First, lets look at LEVERAGE:
Every successful person or business takes advantage of leverage. There are only 24 hours in a day and no matter how talented you are or how much you get paid per hour, if you don't take advantage of leverage you're limited by number of hours in a day. As a side note, I have heard of cases where an occasional lawyer was billing more than 24 hours per day…but, I guess that’s another story. By learning to leverage your time, you can also benefit from a percentage of other people's efforts, and dramatically increase your income while creating more free time for yourself.
The unique and wonderful thing about Network Marketing business model is that everyone has same opportunity to become 'owner' of his or her own business - with a fraction of investment of time and money of a franchise or traditional business.
In network marketing people at top definitely have a vested interest in helping others on their team succeed.
Would you rather receive 100% of one person's efforts, or 5% of efforts of 100 people?
Obviously 100% of one is always only ONE. But 5% of 100 is FIVE. Not only will total result with leverage almost always be amplified, but your income is not dependent on only one person. If your income is produced by activities of many, it is much more dependable. Even if something unexpected or negative happens to one or more of those people, it only has a minor effect on total production.
It's great to get paid while you're sleeping or away on vacation. That's one of many advantages of leveraging your time.