First, let's break this down into two categories. Category #1 entails offering an extensive line of products, extensive services, departmentalizing your web design, accounting, billing, shipping, receiving, marketing, sales, inventory, personnel management, staffing, administration...

Whoa! What is this? I am not a corporation! I'm one person with a PC in my bedroom, screaming kids, barking dogs, a skeptical spouse, a regular job, and two hours between kid's bed time and mine to try and make a difference in all our lives.

So, what's category #2?

Category #2 is affiliate programs or MLM.

Ok great, but what are keys there? Actually, they are almost opposite of keys to success for category #1 business. There are 3 main points, and each intertwines logically with other. Here they are.

LOW INVESTMENT

Part of magic of network marketing over Internet is how little it takes to get started. In fact, it's a mistake to have a large initial investment. The vast majority of MLM programs cost no more than $50 to join. In real world terms, starting a business for ONLY $50 is unheard of! On Internet, however, it's a reality. Many programs pay commissions of 40-50% on referrals as well, making a return on your investment incredibly fast.

So why dump a large investment into a program BEFORE you can see how well it will work for you when you can start much more easily with little to lose? Besides, BIG Bucks do not come from ONE sale, but multiple sales generated by a large network in your downline, and that large downline is much more likely to develop if initial cost to joining your program is a small one.

GEOMETRIC PROGRESSION

In last couple of years downline builders have become popular as a way to recruit people for one or more programs. What is a downline builder program?

I want to say right up front that I am not against downline builders or MLM programs, they are great ways to build income. But you have to go into them with a certain amount of knowledge of how they work.

Basically downline builder is a marketing plan in which prospects are placed after signing up. The organizational structure of plan varies from program to program. It can be a straight line organization i.e., one person right under each other or it can be two on first level, four on second, eight on third, etc. There are so many different ways to set it up it would be difficult to describe them all here. Many of them will be set up in structure that primary program is, one you will end up going into at some point.

The primary concept of downline builder is to build a downline before going into a primary income producing program, thus minimizing your initial marketing costs. It is also hoped that this downline, as it is built, will at some point follow you into income producing program.

No matter structure, downline builders are normally FREE. That is what draws so many people into them initially. The promotional material for most of them indicates that you can make X income a month or year by joining up. What many people fail to realize is that they are not going to make any money by just being a member of downline builder itself.