Home Based MLM BasicsA home based MLM business is capitalism at the grass roots level. Some say that Mother Nature was the original network marketer - you plant a seed, say a cherry seed. What do you get in return? Another seed? No, you get a tree full of cherries all with there own seed, which fall to the ground and produce more trees and more cherries and more trees and more and more and more. This is home based mlm business at its most basic level. The efforts of a few are multiplied by many, all for the benefit of the whole. It is groups of people with a common interest (financial freedom and stability) all pulling and pushing in the same direction toward a common goal. Ten individuals can get a lot more accomplished than one, not matter how hard the one works. In most classic relationship marketing organizations, for one to advance and progress one has to help pull another along. Everyone's success is intertwined so all work toward a common goal. Quite the opposite of the dog eat dog environment in most corporate sittings. This home-based business is your opportunity to free yourself from that.
Network marketing is a combination of direct sales and franchising. Normally, some commission is earned from the products and services that you sell directly to customers AND a residual commission or bonus is paid to you from the sales of others which are added to your team. The best example of this is McDonalds Corporation - McDonalds earns most of its revenue from an 18% - 20% cut of the profits of each of its independently owned franchises. This has dual benefits, one - the companies income streams are divesified geographically and two - the company is less vulnerable to the failure of any one store. You have the opportunity through home based businesses, such as network marketing, to leverage your efforts in the same way. Albeit at much less than the multi million dollar entry fee a McDonalds would cost you.
Generally, you are paid some form of commission on the products/services you sell and, here's the beauty, some commission on the products and services that those you recruit sell (or someone else in your organization recruits for you.) Remember the cherry tree example - this process repeats itself over and over adding up to big money for those involved. Some organizations may pay an aquisition bonus for bringing others to the business. This cannot be the sole source of income though, as the exchange of a legitimate product or service is what sets legitimate home based MLM businesses from illegal "pyramids". Do not confuse the two. To do so may keep you from big opportunity. The persons placed under you in the organization are referred to as your "downline" and building your downline is crucial to the succes of a strong, viable business. Remember 100 people can accomplish a lot more than 10.
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