What is Network Marketing

Network marketing is a legitimate business. It is based on providing people with real, products that they need and want at a fair price. Some people do make a lot of money through network marketing. Their financial result is always based on the dedication and efforts put forth by an individual. The money made comes from sales and commission from an organization that sells real products and services.

How ever to help you to better understand what network marketing is, I believe you must first know what it is NOT.

IT IS NOT

• A pyramid scheme.

• A get-rich-quick scheme or Ponzi.

• A scam

These are just the bad stereotypes that network marketing has been so closely associated with. The worst is pyramid scheme. It has single handedly almost cripple the business.

Pyramids are programs comparable to chain letters. In this program people just invest money based on the false promise that other people will put in money that will return back to them somehow and they will get rich beyond their dreams. A pyramid is entirely a money game and has no place in real commerce. Normally, there's no product or service involved at all. It is just pure money changing hands. Mutated pyramids today may have a product, but their main purpose is clearly to disguise the money game.

Pyramids are illegal in most countries and are based on taking advantage of unsuspecting people. In order for someone to actually make money in a pyramid scheme, someone else has to lose money. But in network marketing, each person can multiply his or her efforts, skills and talents by helping others to be successful. Network marketing has proved itself as part of the new economy and a preferred way to do business all around the world.

Network marketing is not about taking advantage of your family, friends or relatives. A few years ago, network marketing was considered retailing business. Sharing the products, the services and the opportunity with people you know is still the basic foundation of the business. However we see more people using this refined marketing technique to build wealth on the Internet. Affiliate marketing, Google Adsense and EBay just to name a few.

Network marketing is not a get-rich-quick scheme. Some people do make large amounts of money in little time but that is a selected few. Many people would say that those people are lucky. But to be successful in networking is not just based on luck. Remember “Luck is when preparation meets opportunity.” With that said success in network marketing is based on following some very basic yet dynamic principles, namely, passion, sincere effort, commitment, good work ethics and the desire to succeed. Network marketing principle is all about leveraging. It is about multiplying your time to increase the number of hours of work effort on which you get paid. This is done by sponsoring other people and earning a small income on their efforts. They work for you. They work and you both get paid. Not just the guy up top the CEOs, CFOs and COOs

In a nutshell that is network marketing. It is a business model that is all about leverage.