Here is an easy explanation about Network Marketing:

Network Marketing, which is also known as Multi-Level Marketing (A.K.A. MLM) is a legitimate business model that uses direct selling and relationship referrals as a method of selling a specific company’s products or services. With this model, individual associates (A.K.A. distributors) essentially contract or act like a franchise to the parent company and are paid a commission based on the volume of product or services that are sold individually and as a result of their own organization’s efforts.

When looking at any home-based business opportunity, it would serve you well to look at it from the perspective of both the company as well as that of the business person.

Why Do Companies Choose to use the Network Marketing Distribution Model?

Because their ultimate goal is to increase customer base and sell products and services. When big companies strive to reach that goal, they MUST advertise and distribute products. Along with advertising and distribution comes large costs.

MLM companies prefer to bypass the middleman by selling direct to the customer. They use referrals and a word-of-mouth approach to develop their customer base instead of maintaining a large advertising budget for the middleman. Instead, advertising can now be used to reward business associates (distributors) by giving them a commission for helping the company make sales.

This method allows start up companies to build a customer base through referrals without having to try to outspend their competitors advertising budget. What’s really great is that Network Marketing levels the playing field and allows small businesses the same opportunity as their competing international heavy weights. It also allows the manufacturing company to build a relationship direct with their customers creating better customer satisfaction and loyalty. Selling direct to the customer and bypassing the middleman also helps the customer to save money (without compromising quality), which additionally makes their products more appealing.

So What Makes MLM Attractive to a Home-based Business Person?

Many people join Network Marketing because of the low start up costs and huge income potential. The residual income is also a big draw for many people. Imagine, having more money left over than month as well as the time freedom that goes right along with it!

Your Genuine Network Marketing Sister,