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.

Now Let's Discuss The Income Side

Without Sales Income, All You’ve Done Is Spend Money, And Anyone Can Do That.

So that we are clear in what I am going to define for you, let me say that there are two forms of Income.

We shall be dealing with Sales Income, in this article, which in our case will consist of large amounts of money being received as a developer in exchange for property units we have created.

The other form of income in a feasibility study, is Rental Income and will be addressed at another time when I write an E-book on Commercial Development.

Sales Income

Because of make up of our feasibility study sheet, there will be no deductions from out Gross Sales Income, because we have allowed for those costs on Cost Side of our feasibility study.

Items such as sales commissions for sales agents and various marketing costs have already been allowed for previously.

Now I have seen some formats of feasibility study, which deducts marketing costs from Gross Sales Income to produce a Net Sales Income.

It achieves nothing – "all costs are costs" and they should be put on cost side of feasibility study, which is what I do and have always done.

When Can You Get Your Hands On The Sales Income.

Getting sales income into your account is very important, yet many people never ask question as to what procedure is “exactly” in their neck of woods.

Get to your Conveyance Expert and have them give you a schedule of events “with an estimate of time for each stage.”

This information is important in preparing your cash flow feasibility study format, as it results in reducing your interest cost.

So by knowing this information at beginning of a development investigation, you are adding a little bit of “certainty” to early stages of your feasibility study.

Let me give you an example:

At end of construction phase builder moves off site, there are a whole range of things that have to occur, any or all of which can delay, settlement taking place and so delay you getting Sales Income.

Some of these things are:

•Architect’s inspection of entire project.

•Architect preparing a Defects List.

•Builder calling back subcontractors to correct defects.

•Architect’s final inspection.

•Architect issues Completion Certificate

•Surveyor (engineers in some countries) does final measurement of individual residential accommodation units and compares to Unit Plan that is included in Sales Contract.

•Preparation of Final Unit Plan (as used by conveyance office) for settlement.

•Lodgment of Unit Plan with Titles Office.