Net work Marketing had its roots long before the internet. Some very large and successful companies were built on, and continue to thrive, based on a MLM model. The way it basically works is this: a company sells products or services through a vast network of independent distributors that sell at retail prices to the end consumer.



The new distributor usually pays some sort of fee to join and/or has to buy a certain amount of the products to gain distributorship status. All legitimate network marketing companies work on a solid business model. The parent company has a product or service of value to offer its customers. The networker's responsibility is two-fold; to find other customers to buy the product and to recruit new members.

Network Marketing companies urge distributors to bring in new people to do the same as they are. The referring distributor then earns a commission on the products that the new distributor sells. If the new distributor also brings in other distributors, the original distributor also receives commissions on those sales and so on. This is the "Multi Level" business model. You can be paid on any where from 2 to 10 levels, some companies pay even more.

In most network marketing companies you can earn more income by referring new members than you can by just marketing the companies products. The best distributors are usually people who love the product and who would still purchase the products even if there were no business opportunity also.

If you are considering a network marketing opportunity, you should ask the following questions:

1) Who owns the company? What is their commitment level, their integrity and honesty?

2) How old is the company, most companies fail with in the first 5 years.

3) Who is your upline? What kind of training does the company and/or your upline provide. Investigate the entire upline just like you would a business partner you'd never met before.

4) What is the product? Become an expert on the product and/or service that's being offered to clients. Learn as much as you can about the competition as well.

5) How long will it take for you start making money? Don't fall for the line that it takes months or even years to show a profit. You should be able to recoup your investment and start earning income within just a few weeks. Although making a living may be another story. It is usually best to start your new business on a part time basis first.

6) How do you recruit new members? As a customer first, then mention the possible income opportunity, or the business opportunity first and the products second. Usually a combination of these two methods works best depending on the person that you are talking to.

7) Why pursue this network opportunity with this company? This is perhaps the most important question of all. Don't just focus on the short-term earnings; you should concentrate on your long-term goals also.

Essentially, there are no right and wrong answers to these questions concerning a network marketing opportunity. The point is to make sure that everything you need to know is easy to find out, if the answers are vague, do more research before you decide if this is the right company for you.

Many people have made a lot of money in network marketing; this type of business can supply you with a very nice part time residual income.