1. Network Marketing – the Recommended Path to Financial
Freedom…
http://www.empowernetwork.com/d1biz stop/blog/network- marketing- the- recommended- path- to- financial- freedom March 22, 2013
Network Marketing – Public Opinions
Mention the words “network marketing“, and many people will offer their views on the topic, ranging
from “it ’s some kinda of pyramid scheme” to “it ’s t he next best t hing since sliced bread“.
Consider the following quotes from some highly successful, very wealthy individuals.
Robert Kiyosaki, Entrepreneur, Investor, and Best-selling Author:
Network marketing is the
fastest growing business model in the world today.
Network marketing gives people the opportunity, with very low risk and very low
financial commitment, to
build their own income-generating asset and acquire great wealth.
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.
Donald Trump, Real Estate Mogul, Television Personality, Author:
I am often asked if Network Marketing is a Pyramid Scheme. My reply is that
corporations really are pyramid schemes. A corporation has only one person at the
top, generally the CEO, and everyone else below.
2. Infographic courtesy MastermindEvent.com
Network Marketing – its Biggest Misconception
There are many misconceptions about the network marketing industry, and a lot of people use
them as a basis for forming opinions and making decisions. One of the biggest, as mentioned in
Donald Trump’s quote above is that net work market ing is a pyramid scheme.
It should be noted that every one of us is (or has been) part of a pyramid st ruct ure – think
family tree, formal schooling, citizen of a country, etc.. The following image offers a comparison of
some widely recognizable pyramids.
Image courtesy Success in a Cup
Off course, in the phrase “pyramid
scheme” the emphasis is less on the
‘pyramid‘ and more on the ‘scheme‘.
This usually implies that it is some kind
3. of scam.
The FTC has this to say on the matter
of recognizing pyramid schemes:
Pyramid schemes … all share
one overriding characteristic.
They promise consumers or
investors large profits based
primarily on recruiting others
to join their program, not
based on profits from any real
investment or real sale of goods to the public.
[I]n a Ponzi scheme the promoter generally has no product to sell and pays no
commission to investors who recruit new “members.”
Multilevel marketing programs are known as MLM’s, and unlike pyramid or Ponzi
schemes, MLM’s have a real product to sell. More importantly, MLM’s actually sell
their product to members of the general public, without requiring these
consumers to pay anything extra or to join the MLM system. MLM’s may pay
commissions to a long string of distributors, but these commission are paid for real
retail sales, not for new recruits.
So, the following questions arise:
- what is net work market ing?
- is net work market ing t he same as MLM?
- why should you consider get t ing involved wit h net work market ing?
Let’s get to the answers to these questions.
What is Network Marketing?
Net work market ing is
a business model in which independent distributors utilize direct selling techniques to bring
products and/or services to consumers. It is an offspring of the direct sales industry.
The term ‘network‘ in network marketing has a two-fold meaning:
4. 1) Firstly, it refers to t he net working st yle of int eract ion between distributors and customers.
This involves connecting on a more personal level by relationship building.
2) Secondly, it refers to t he int erconnect ed st ruct ure resulting from the relationships formed
between the company, the distributors, and the end consumers.
Network Marketing vs. Multi-level Marketing (MLM)
The author of the article “What is Network Marketing” at network-marketing-mlm-success-
system.com does a great job of summing up the difference:
“network marketing” describes WHAT network marketers do!
“multilevel marketing“describes HOW network marketers earn their commissions
and get paid.
Let me elaborate on this.
Network marketing programs can be categorized based on their compensation structure – how
commissions are paid out. These can be either a single-t ier, t wo-t ier, or mult i-level marketing
program.
Here’s a great explanation on the differences from About.com:
Single-Tier Net work Market ing: You sign up with an affiliate program to sell their product
or service. You do not need to recruit other distributors and are only paid if you make a direct
sale. Avon, is a company that uses single-tier networking marketing. In some online affiliate
programs you are only paid for traffic you have referred to the affiliate’s website. Pay-per-
click (PPC) and pay-per-lead (PPL) affiliate programs are other examples of single-tier
networking.
Two-Tier Net work Market ing: This terms applies to network marketing that pays you for
direct sales (or traffic you refer to a website) and for direct sales or referred traffic made by
affiliates or distributors you recruit to work under you. An example of a two-tier program is
Ken Envoy’s Site Sell.
Mult i-Level Market ing (MLM): Is a distribution-based marketing network that is two or more
tiers “deep.” Some MLM programs allow you to make money five or more tiers deep.
Examples of MLM businesses include The Trump Network, Magnetic Sponsoring, and
Amway.
5. So, network marketing is NOT the same as multi-level marketing. Rather, MLM is a t ype of
net work market ing t hat describes t he compensat ion st ruct ure being used.
Image courtesy First Class MLM
Network Marketing – Brilliant Compensation
The third question we asked earlier was, “why
should you consider get t ing involved wit h
net work market ing?”
In this section, we’ll go through some of the many
benefits associated with network marketing. To do
this, we’ll let Tim Sales (network marketing/MLM
6. expert, coach, and trainer) provide some video
explanations.
Some Keys Benef its of Network
Marketing
1) Network Marketing Can Get You More Hours Out of the Day to Grow Your
Wealth!
2) Network Marketing Can Help You Make Multiple Times Your Income in the
Same 24 Hours a day!
3) Many Big Names Are Into Network Marketing!
4) Network Marketing Provides Fair Compensation!
Now that we have a better understanding of network marketing and we’ve cleared up some of the
misconceptions, the next logical question would be:
What t o look f or when choosing a net work market ing program. This will be discussed in an
upcoming article.
In the meantime, check out Empower Network’s program by reviewing its
- different business building products!
- super simple system!
- awesome compensation plan!
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About The Author: Dahlia-n
Dahlia Lamy is a mathematics instructor at a university in South Jersey. Dahlia was
born and raised in the Caribbean...in the twin-island republic of Trinidad and Tobago.
Born to ambitious and hardworking parents, Dahlia has always been a go-getter.
Moved to Chicago in 2000 to further 'her' education and stayed to take advantage of the
opportunities available in the US. After allowing life to have its way with 'her', Dahlia has finally
(Sept 2012) decided to take control of 'her' destiny (financial and otherwise).