You might wonder what magic this network marketing is. It’s really quite simple, and when successful, you really can makes lots of money. Of course, it’s not as easy as ads make it to be.

Some manufacturers use another route to sell their products other than standard manufacturer-warehouse-wholesaler-retailer-customer path. This alternative route is known as network marketing.

You buy products from someone who is already a member of a network marketing company. He recruits you and becomes your sponsor.

You, in turn, will be selling products too. Upon joining network, you will become a part of your sponsor’s downline, which just means all of his recruits and his recruits’ recruits (and so on).

Your sponsor benefits from his downline because he will get a small percentage of profit for every item sold by every member.

However, aside from selling, you are also expected to get recruits and create your own downline.

The bigger your downline is, better chances for you to earn big. Suppose you recruit ten people, and each one of them recruits another ten. You’ll get a hundred people already at just second level.

If all these members are active sellers and recruiters then you’ll have around more than a thousand people from which you can get profit from.

There’s monetary investment involved in network marketing. Some ask for membership fees, while most require you to buy a set of all products offered upon joining.

Either way, it’s still money out of your pocket. If you’re willing to risk joining a startup company, you will not be dealing with sponsors because you’ll be a pioneer member.