If you keep hearing people talking about going into home based business network marketing, but you can’t quite figure out what it’s all about, then keep reading for the next two minutes. This article will explain what it is and why you should consider finding one that works for you.
When some people hear the term, network marketing, they think about the home shopping channels on TV. That is not what this is about. It is another way of saying multi-level marketing. It is a method that many individuals have used to make a lot of money and accomplish many of their dreams.
No matter what you call it, home based business network marketing is exciting because you get to work with a group of people who have the same goals and desires of success. When the people your bring into the program do well, so do you. When it is done correctly, everyone works together and nobody is left all alone.
Network marketing companies sell a product or a series of products to their members. The members make a minimum monthly commitment to buy the products. They have to option to buy more than is required and sell them to people they know or at a swap meet, etc., for a higher price. In that past, that was encouraged by most MLM companies, but in more recent years, the emphasis is mainly on buying for personal consumption purposes.
The way money is made is by referring other to join your program, and they will also buy the minimum amount per month. It generally runs between $50 and $100. The people you refer personally are said to be on your first level. When they refer their first level, those members are said to be on your second level.
Your downline will extend several levels deep, usually between five and ten, according to how the company is set up. When anyone in your organization buys, you make a percentage. Similarly, when ever you purchase, everyone in your upline makes money.
Over time, significant monthly residual income is possible by building a large organization. It requires duplication. You must train your referrals how to refer others and they must do the same. Everyone needs to keep referring so your team can grow.
It is possible to have hundreds of people in your downline making you many thousands of dollars every month. Home based business network marketing is not a way to get rich quick. Most people do not get rich from it, but with consistent work, it is possible to replace a lost income or fire your boss.
Home based business network marketing is exciting for many reasons. It really is not hard to understand how it works. It’s a way to make money while helping others to be successful. When others on your team do well, it helps you, so it is in your best interest to train them well. Everyone buys the company products each month, and you make money from all the people on your team below you, just as the team members above you make money from your sales. By referring others and teaching them to refer others, you can earn some very decent money.