Network marketing has existed as a business model since the 1930s and the industry is still engaging more than 125 million individuals worldwide. Despite this, it still has negative connotations for many, who do not trust it.

It is a very simple, yet misunderstood, industry and many people do not really understand and see all the benefits that it has to offer. I believe that most people do not understand what network marketing is and how it works.

Network marketing is simply a business model that encourages customers to market products they love to their networks of friends, colleagues, and contacts. The marketing is traditionally done through word-of-mouth advertising and personal testimonials. Over the last few years, the model has become even more popular due to the growth in social media and the opportunity to connect with people from all around the world online.

Network marketing companies put their advertising budget into paying their consumers to promote their products. Most network marketing companies have unique and high-quality products and see that first-hand testimonials are the best and most effective marketing method for their products.

This business model depends on person-to-person communication by independent representatives who usually work from home. It allows anybody to build a team of business partners who love the products and love to educate others about them. When new individuals decide to use the products and/or share them with others, they are being connected directly with the network marketing company and they have the exact same opportunity as the existing team.

A business partner in my network marketing business does NOT keep stock, we do NOT deliver the products, we do NOT collect the payment from the end user. All we do is simply educate people about our technology and connect them with the company. The company then ships the product directly to the end user and takes payment.

Network marketing companies do not want to pay for TV or online advertising or share profits with stores to put their products on shelves. They also do not pay celebrities to use their products. They pay us, the people who add value to the customer. I like to think of this as a “thank you for the help” payment every time I make a sale. That means you will grow your income every time you and your network grow your sales. More sales = more income.

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