Network Marketing, The Business Model


Network marketing is just a multi-billion buck business. As a business model, it is taught in major universities across the world. . .between 50 percent and 65 percent of all goods and services sold within this century is likely to soon be through network marketing” It’s just a business model that is perfectly suited to the”information era ”

What is this”Business Model?”

Network marketing can be just a way of doing Agent Seth Levinson business that is different from the”traditional” model used by most consumer packaged goods, food and drug companies. It really is but one of the most promising income chances in American today. It is the concept of several people each doing a bit of job, rather than a couple folks doing a lot of work. To quote J. Paul Getty, the world’s first billionaire,”I’d go for 1% of the efforts of 100 people than 100% of my very own.”

Moreover, the price structure of a network marketing company differs compared to a conventional packaged goods marketer.

With a traditional company, millions of dollars have been spent on advertising to entice consumers to get that corporation’s services and products instead of their virtually identical product from the other company. With a networking company, the advertising expense is channeled into sales commissions for distributors that promote the product through”word” advertisements, i.e. by telling others about the product. In the conventional industry model, the money is spent BEFORE the selling in the kind of advertisements; in the network marketing model, the money is paid AFTER the purchase in the shape of commissions. Which model appears to create the most sense from the business perspective?

You may invest your time and money once and get paid multiple times for the endeavor. It means getting paid for that job of all others. In traditional sales, you may be a excellent salesperson and have a couple of dozen good customers and earn your revenue from each of their purchases. But, you most likely need to nurture these customers and spend most of your working time making sure they have been buying from you and not somebody else.

In network marketing, you can create a downline of 100, 1,000, or even 10,000 people, most of whom you aren’t going to know nor have contact . That is because the majority of individuals in your mind is going to soon be individuals who know some one, who know someone , who understand somebody, who understand that you. Using a downline that’s dealing together with you personally, and for you, you could multiply your efforts repeatedly. The earning potential of a downline of 1000 people, each setting up only 1 hour per day five days a week, reflects 20,000 hrs of work per month. It’d take one person ten years to create exactly the same quantity of work. That’s the energy of a community.

“The wealthiest people on earth look for networks. Everyone else looks for work”

It’s projected that more than 50,000 people take up a home-based business weekly in the United States. The ordinary person having a home business generates more than $50,000 annually (often working part time ), while the national average yearly household income is less than $45,000 (and the majority of people will work at least 40 hours per week). In addition, a home based business operator can qualify for most legitimate tax breaks, and taxation experts imply that the typical person can save between $2000 and $10,000 on taxes each year just by starting a home-based enterprise.

How is this possible? Well, consider these two tax structures: a wage earner first earns cash, subsequently pays tax on such income, and then pays expenses with low-income earnings. A business owner first earns cash, then pays for expenses, after which pays taxation on earnings after expenses. To put it differently, a company owner can lawfully reduce the total amount of tax he or she has to pay because business expenses are paid together with pre-tax income, perhaps not after-tax, income.

Network marketing is a $36 Billion industry within the United States. More than 20 percent of the estimated one million millionaires in America today have made their fortunes within the previous six years through network marketing and advertising. Worldwide, there are over 3.5 million millionaires, and a lot more than 700,000 have made their millions via network marketing. Conservative estimates are that network promotion in America is creating 40 new millionaires each month from ordinary individuals. Which usually means that a individual’s greatest chance of economic achievement is through”networking.” Again, Robert Kiyosaki discovered,”When I had it to do all over again, I would choose network marketing”

For people who’re thinking about starting a homebased business, supplementing their income, also providing more security for retirement and also to his or her children and grandchildren, network marketing is an evident choice.