What Is Network Marketing?
We all have two choices.
We can make a living or we can design a life.
- Jim Rohn


Additional Information That You Will Want To Read
The Financial Facts of Life | Seven Basic Reasons Why People Succeed
Understanding Compensation Plans | Tax Advantages
Network Marketing FAQ
| Network Marketing or Pyramid Scheme

"If I had to do it all over again, rather than build an old style type of business, I would have started building a network marketing business."
Quote by Robert T. Kiyosaki
Network Marketing (also called MLM or Referral Marketing) is a business distribution model that allows a parent multi-level marketing company to market their products directly to consumers by means of relationship referral and direct selling.

It's a business about people helping people, making it the most fun and rewarding form of business! Today, more and more companies are offering their products and services through Network Marketing.

Why do corporations seek out individuals to market their products? By using independent distributors they cut their advertising costs by millions of dollars! Word of mouth advertising is still the most powerful form of advertising today.

Network Marketing is the finest example of the free enterprise system. One in which common people can start with a small sum of money, and through sheer tenacity and determination, rise to staggering levels of financial reward and personal freedom.

Network Marketing or Referral Marketing

Offers reasonably priced products and/or services that people like to re-order on a regular basis. Plus, it has a benefit that most direct sales companies do not have and that is, residual income.

Network marketing is about sales and distribution, but a different kind of sales. It's more of a soft sale or recommendation, not the hard closing type that you're accustomed to with the typical salesman or saleswoman in the direct sales.

  • Work from home: No overhead, no employees, no health insurance for your employees, no office rent...

  • Low start up cost allows more people to become involved

  • Builds residual Income

  • Set your own work schedule

How Does Network Marketing Work?

Independent salespeople, referred to as distributors (associates, independent business owners, franchise owners, sales consultants, consultants, independent agents, etc.), represent the parent company and are rewarded a commission relative to the volume of product sold through each of their independent businesses (organizations). 

Independent distributors develop their organization by either building an active customer base, who buy direct from the parent company and / or by recruiting a downline of independent distributors who also build a customer base, expanding the overall organization. Additionally, distributors can also earn a profit by retailing products which they purchased from the parent company at wholesale price.

Just as your employer leverages your time, through Network Marketing, you can leverage the time of others. What does that mean? Each person is doing a small amount, gathering customers and introducing new people into your business. You are looking at a business model that will take a few years to produce a full-time income, so donít give up your day job just yet. It will require 5 to 20 hours of work a week to become successful in Network Marketing. This is not a "get rich quick overnight" program... It never has been and it never will be.

Network marketing is based on word of mouth advertising, which is the best form of advertising. Think about it... when you watch a great movie, you tell people about it. When Samís Club or Costco moved to your area, you joined their buying club and started telling everyone how much you saved.

Major advertising agencies and companies count on this. This is one of the things that we do as network marketers. The major difference with Network Marketing, is that we get paid for our word of mouth advertising.

One of the most often asked questions is, "Will I have to sell products and services?" No one likes to have a salesman or woman come to the door and sell them products, right? We all hate to go to the car dealers, where you are swarmed with 5 different sales people all trying to get you to buy from them!

So how are we different? We just recommend products and services that we like and personally use. If we know itís good, and personally use it, recommending it to our friends and family or anyone else is very easy.

  • Minimal start-up costs
  • Choose the people you work with
  • Travel opportunities
  • Empower others
  • Personal growth
What To Look For In A Network Marketing Company

So, youíre serious about getting involved in this industry. Now, what do you look for in a company? We can sum this up in a few high points:

Physical Address & Contact Info
On the company website, look for a physical address, a phone number, names and pictures of the owners. If a company only has an email address and no phone number, this could be a clue that you probably don't want to do business with them. You can use http://earth.google.com to look at a satellite picture of the size and location of the company office.

Good management is a must in this business. What is their experience? How many times in the past year have you heard of a new business opening? We see them every other day it seems like! A lot of these businesses are started with management that has little to no experience. Businesses with no experience in their industry have a high failure rate.

Method of Payment
If a company only accepts bank wires, money orders, or checks and does not accept credit cards (giving you recourse if you don't receive - or have problems with - the product or service you ordered), this probably is not a company you want to do business with. Honest companies will have a refund policy clearly stated on their website.

Read the Fine Print
Look for things like "Policies and Procedures", "Terms of Agreement", "Enrollment Agreement", etc. These  are business contracts, enforceable in a court of law. If you see anything that makes you uncomfortable, wait... don't join until you are SURE what you are reading. It's also a good idea to look for a privacy policy to ensure that your name and information won't be sold to a third party for other purposes.

Using the Internet to Help You

  • Go to one of the major search engines and enter the following:
    The Company's name and the word "scam". Then do the same using "complaints" and "lawsuits". Also do a search with the owners name and the word "scam", "complaints", and "lawsuits". Look for comments for legitimate complaints and not just comments from "Anti-MLM Zealots".
  • Check to see who registered the website domain of any new company by going to www.godaddy.com Scroll to the bottom of the page and look for the "WhoIs" link. Look for information that matches what you are seeing on the company website. Also look at the registration date. Most legitimate companies take months (and sometimes years) in the pre-planning stages. As soon as they choose a name for their company, one of the first steps will be to register that domain name so that no one else can.
  • Go to the Better Business Bureau website. Most BBB searches are free. You want to look for complaints that have NOT been resolved. If there are more than a couple, it could mean there problems. Not every complaint the BBB receives is valid, but it can be a good indicator of how the prospective company handles their day to day business matters. Be sure to use the Advanced Search (not the Quick Search) by going here: http://search.bbb.org/SearchForm.aspx?mode=Business 

Does the company have it? Do they stand behind their products, services, and their people? No outrageous claims or exaggerations. Does their customer service department answer quickly? Are their products shipped in a timely manner? Are the commission checks being sent out on time? 

Does the company make it's decisions with the representative in mind or the company in mind? Companies that are publicly traded are sometimes worse than those that are not publicly traded. Obviously, a publicly traded company has to answer to its share holders first, not it's representatives.

Products / Services
The most successful people in network marketing love their products. It is much easier to "share" a product that you really do use and enjoy. So you must have good things to say about your products or services. You must be a product of your product. Think about this, if you own X brand of gas station would you drive across the street to by at Y brand? Of course not!

One thing to keep in mind when looking at companies is whom will the product appeal to? This is what is known as your target marketing. Not all products will appeal to everyone which is one of the reasons our warm market may not be a candidate for either our products or our business opportunity.

Is there some type of training provided either by the company or your upline? This can be as simple as conference calls, FAQ's, or tapes, books, etc. Once you join, there will be a lot to learn - about your products, your pay plan, and how to build your business. It will be much easier if there is a system in place to help you learn all about your new business. Are there sales aids available? If there are, you'll want to pick a few to start with.

Does it have a Duplicable Business System?
This is vitally important, but is missing in a lot of network marketing companies. Do they leave it up to you? Look for a company and a team that has a system in place that you can use from day one in your network marketing business.

The sky is the limit!

  • It is not uncommon for people to earn 6 figure incomes when they consistently work the business for 2-5 years
  • More immediate millionaires have been made in network marketing than in any other immediate business
  • Incredible tax advantages for having a home based business

The Choice Is Yours....

Trading Time for Money = Your J.O.B. (Just Over Broke)


Creating Your Financial Freedom = Network Marketing


When you know where you want to go,
you'll make the time to do what it takes to get there.

Additional Information That You Will Want To Read
The Financial Facts of Life | Seven Basic Reasons Why People Succeed
Understanding Compensation Plans | Tax Advantages 
Network Marketing FAQ | Network Marketing or Pyramid Scheme


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