This document provides an overview of the network marketing business model. It explains that network marketing uses word-of-mouth advertising through independent distributors to sell products. Distributors can earn commissions on their own sales and on sales by others in their network. As more distributors are added, the network grows exponentially, allowing residual income to be earned from the ongoing sales of those in the network. The benefits outlined are that it allows an average person to own a business with little investment and provides flexibility to control their own time. Training and support is provided by more experienced distributors.

1. Primer on the Network
Marketing Business Model
AKA
Multi Level Marketing, Relationship Marketing, or
Word of Mouth Marketing

2. The Distribution Model
Traditional Distribution
model
Manufacturer
Wholesaler
Distributor
Retailer
Consumer
Network Marketing
Distribution Model
Manufacturer
Consumer
This marketing
chain is all
replaced by
the NM associate
talking to people
Advertiser
50 % of the consumer
volume is paid to the
Associate in the form
of thank you money
just for spreading
the word
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3. What is Network Marketing?
Network Marketing is a distribution channel
just like a retail store or Amazon or any
other method of getting products from a
manufacturer to a consumer.
Network Marketing is the sale of products to
consumers through a network using word-of-
mouth advertising.
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4. Key Elements of Network Marketing
Associates can increase their income by building a network of others who do the
same thing. They are then eligible for commission on the sales in their network.
Associates can improve the productivity of their network through leadership,
guidance and training of their network.
Associates or distributors can sell products to consumers and receive a
commission on their sales
Many companies choose to use network
marketing to distribute their product
because they know it is the most
efficient form of distribution. People
trust the recommendations of people
they know
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5. What does Multi Level Mean?
Multi level means that a percentage of the commission is shared among a
group of people who all work to build a distribution system for the
company’s product or service.
Every new distributor begins his or her own team or downline. Everybody
has an equal opportunity to build as big a downline as they want. There is
no advantage to early entry.
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6. Benefits Of Network Marketing
 Allows the average person with no business background or special education to own a
business of his or her own
 Level playing field for everyone – No discrimination
 Free back office and customer websites
 Free training and mentorship with experienced associates
 You are affiliated with but not employed by the company that provides the product. So
no product, places or people to manage
 Start you own business having huge upside potential with a very small investment.
 Freedom to control your time for your lifestyle
 You choose where & when to work
 No boss or corporation to answer to
 You determine who you will work with
 Stop exchanging your time for dollars
 You control your income
 Tax advantage of a home-based business
 Can start part-time or full-time
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7.  The company is responsible for everything to do with
the business itself except the marketing
 Product development
 Customer Service
 Shipping,
 Legal issues
 Insurance
 New market development
 International expansion
 Payroll
 Billing
What Does the Company Do?
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8.  Excellent free training resources
 Mentorship by people who have a strong incentive to
make you successful
How do I Learn the Business?
You get to work with
people with a common
interest who are
motivated to help you
be as successful as you
want to be
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9. Is it for The Long Term?
 Allows you to create a residual
income which pays you on work
previously done when people
continue to order your product
each month.
 Over time you can develop a
substantial income but still
maintain the freedom to choose
when and where to work.
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10. How Does an Organization Expand?
Leveraging and exponential growth
can best be explained by understanding
the growth effect of compound interest
on money saved or invested.
When you invest and reinvest the
interest earned, (Money leveraging) your
money will grow exponentially.
In the first compounding periods, the
interest is small.
In the long run, interest on interest is a
very big deal.
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11. Level 1 - This is you – you invest 10 hours a week in your business and ten hours of work is accomplished -
Level 2 – 2 more people added. These are folks that are each working 10 hours in their business resulting
in a total of 30 hours in your business.
Level 3 – 4 more people added working 10 hours on their business resulting in a total of 70 hours of work
occurring in your business.
Level 4 – 8 more people added working 10 hours on their business resulting in a total of 150 hours on your
business.
You are earning on the total sales generated by your whole team in 150
hours worked each week.
Note that each one of your associates is earning on the work they do and the sales their team accomplishes
respective team as well. So you are also helping many other folks earn a residual income. You can build as
big a team as your vision allows.
If we look at this from a time
invested point of view, here’s
what happens: Let’s assume that
each person will work 10 hours
each week to build their business.
A Network Marketing Organization Grows The Same Way
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12. This is exponential growth
You see how this can grow over
time. Network marketing allows
you to build as big an organization
as your vision allows.
It’s not like sales where you have
to sell a new widget every week to
be paid.
As people consume the product
each month on an Autoship
program, you are paid many times
over for that original sale. Thus,
creating an ongoing residual
income.
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13. What’s so special about a passive income?
One of the amazing benefits of
the network marketing business
model is the ability to create a
residual or passive income. Let’s
take a look at the asset value of a
passive income and what that
means to your personal balance
sheet.
In order for you to create an income stream that returns to you $1000
per month or $12,000 per year in ongoing residual income, you would
need an income producing asset of $600,000 invested at 2%.
To produce $2000 per month would require $1,200,000.
Said another way, you would need $1,200,000 invested at 2% to earn a
monthly income of $2000.
I don’t know many folks who have that kind of money to invest. But I
know many people who earn more than $2000 a month in ongoing
residual income in network marketing. 13

14. And Finally
 Many people have the dream of owning their own business but don’t
know how to do that while still working a job. Network marketing
allows you to build the business in your spare time with training and
mentoring from experienced people who have a strong incentive to help
you become the best you can be.
 It is very difficult to find the ideal career where you can have both a
substantial income coupled with abundant time freedom. Network
marketing is the only business I know of where that is possible. Usually,
you can only achieve one or the other.
 Many financial wizards such as Robert Kiyosaki, Warren Buffet and Paul
Zane Pilzer have endorsed the network marketing business model as the
ideal business for the average person wanting to own their own business
without having to make a huge financial investment. The investment
needed is only time and commitment.
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15. Join Us
We Do Have A Better Way
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See the comments below this post to set up an appointment to learn how you
can begin enjoying the benefits of a Home-Based business.