This is personally one of my favorite topics because Network Marketing/MLM is so widely misunderstood.

So, What is Network Marketing?

It's basically a system of marketing and delivering of products or services directly to the end user. Goods or services are moved through a 'network' of independent contractors (distributors or representatives).

It's a system that cuts out the middle men. Check out this movie - for a short and simple explanation;

MLM Business Explained

When done right, MLM - Network Marketing has the potential to make you very wealthy. And, you can have a lot of fun in this industry and it's financially rewarding.

Why Network Marketing Could be For You:

- The success stories are many.

- It is available for everyone.

- If you have 2 to 10 hours a week, you can accrue income of several hundred to several thousand dollars a month.

- Most companies in this industry offer a very low cost to you of starting your business, so if after beginning, you find your choice is not for you, you haven't spent very much money up front.

- With companies downsizing, job security isn't what it was for most of our parents.

- Most people can't retire on what they're earning - even if they could KEEP that money coming in.

- Who really ENJOYS exchanging their lifetime hours from eight to five for not enough money at the end of the month?

- There has never been a time any better than right now - this minute - to build a gigantic business.

- If you need a little or a lot of money to live like you want, give this business a try.

- You can make serious money ---- and we have fun!

Facts You Should Know About an MLM Business

- Is it easy? NO! Is it doable for anyone? YES! And, a lot of that depends on what you mean by EASY. It's EASY to show others our products. And, it's a choice each day whether or not to do it!

- Building a very good income takes some time. Plan for it to take time. Realistically, those that cash the HUGE checks give it no less than 3 years of dedication and "building"

- Learn while you earn --- if you learn a lot fast, you'll earn a lot fast

- Find a product you LOVE and get started today. Find a good sponsor and mentor!

- Sad but true, most people quit because they expect it to come easy. They would rather sit in front of their TV (easy) than learn about how to make money with this business (easy too).

Your job is very simple in your MLM business - share your MLM business opportunity with others who are also looking for a business from home; something to do on the side; or a way out of the rat race (their J-O-B!)

To understand the financial benefits of building a sales team, try out this quick math lesson -

Suppose you sponsor 3 people, who each sponsor 3 people. And those 3 sponsor 3, and so on, down to your 6th level.

It would look something like this -

Level One - 3
Level Two - 9
Level Three - 27
Level Four - 81
Level Five - 243
Level Six - 729

Here is how it works in my company.

Imagine you are earning $4.00 off of those on level one and level 6 each month, and $2.00 off of those on levels 2 through 5. You can do the math and see what your monthly earnings would be with each person doing nothing more than getting their basic $39.96 autoship each month.

Now, because the product that I market has a very strong retail potential, and many distributors cover their expenses by selling their monthly product, we know that our average monthly distributor order runs between $100-200 monthly.

The exciting thing is that these distributors are not forced to order more than $39.95 monthly. They are ordering above the requirement because they have already sold products and have cash in their pockets.

So, back to the example - what if a certain percentage of those sold more products through fundraisers, gift baskets, corporate gifts, home parties, booths and shows, etc.

What if instead of $4.00 or $2.00, you were earning $8.00 and $4.00?

Try that math again and see what you get.

What if you sponsored 4 instead of 3 and so did everyone else? Or 5?

What does that math look like? Run some numbers and see if you don't stay awake tonight!

MLM companies will pay YOU a percentage of the profit they earn for finding others to market their products and services!

Does this make sense to you?

If not, make sure you preview the movie at -

MLM Business Explained

If you get it like I got it over a decade ago, you'll be sleepless for weeks, maybe months, maybe even YEARS!

There are many great Direct Sales companies out there. Many of these are based around a party plan concept.

And, in order to get paid, you must perform! You've gotta party!

If you like that, then you might be well suited to a Direct Sales - Party Plan type of company.

The downside to many party plan type of companies is that you can never "retire" and keep the income on the team that you have built.

In order to get paid, you must meet your minimum sales requirements each and every month. If you stop, so does the money :-(

How Is The Compensation Structured?

It is very important that you understand all aspects of the company's compensation plan before you get started. Same is true with your Network Marketing/MLM business.

Does the company require a party to be a certain level in order to receive compensation? If so, what is that level? Is it a dollar amount, certain number of guests, or certain amount of products sold? Know these answers.

What if you don't meet those requirements? Are you paid less, or nothing?

How can you increase your compensation? Is it only done through product sales or is it also done through recruiting downline?

Finding customers is quite different that finding business partners. Be sure you know the difference.

You'll find that some of your best team members may come from your original customer base. Customer who fall in love with the products and then want to also sell are strong team members.

Your role will be mentoring new recruits by helping them build their businesses. Coaching a team involves training, being available for phone calls, emails and spending time answering beginner questions.

If you are not comfortable with recruiting, or simply don't have the time to devote to new recruits, keep that in mind as you review compensation packages. Can you still meet your financial goals without recruiting downline?

With many direct sales companies, you can!

First, be clear on what your end goal is in building a business.

Are you looking for some extra income and a chance to get out and interact? Maybe a Direct Sales business would better suit you.

Are you looking for some serious income, and the type you can retire with and count on? Perhaps a Network Marketing - MLM company will be the best fit for you.

Here are things to keep in mind on both -

Network Marketing - MLM

Recruiting a team and building leaders will be required to earn an income and certainly a substantial income.

In many programs (not all, and not mine!) your monthtly required "auto-ship" costs will run between $100-300, and may go up as you move up the pay plan.

In many programs (not all and not mine!) the wholesale cost of the products is more than what one might pay in a comparable retail store. This won't allow you the ability to retail your product for a profit. This will require recruiting/team building in order to earn an income.

Make sure you understand any "breakaways" that may happen as your leaders promote themselves. Sometimes this requires you to produce more to jeep your paycheck.

Direct Sales

Make sure you understand what your monthly quotas are going to be to keep your position.

Make sure you are clear on what is required of you if you do recruit and build a team and then decide to stop working. Will you keep your income on the team you've built or does it roll up to the company or your sponsor?

Make sure you understand what will be required of you to sell your products. What restrictions are there? Can you sell only through home parties? Can you advertise? Market through a booth at shows and expos?

And, in both scenarios, what type of support, training and coaching will you be getting from the person who is sponsoring you? Is this person experienced and if not, is his/her upline experienced and available to assist you as well?

What is the company track record? What is the background of the management team and owners?

Have you checked eBay to see how much of your company products are being resold there, and why?

Finally, what passion do you feel for the business and the products? Are you excited about more than just the idea of making money?

The money is GREAT, but you must feel good about the other aspects of your business as well.

Once you decide, make a commitment and take action! Let nothing or no one stop you from taking it straight to the top!

Jackie Ulmer

You can make a great living in sales. You can become extremely wealthy in distribution.

Would you rather own the Coke Machine on the corner or the company that distributes Coke to all of the machines in town?

In Network Marketing, we are in distribution. We are opening outlets all over town, all over our state, our country and maybe even the world.

We don't get terribly concerned about the performance of one particular outlet. We focus on opening outlets, providing each outlet with all of the resources they need to produce and teaching those outlets to open other outlets.

Can you open a few outlets? Can you do this each month? Will you do this each month?

Sales gives you a linear income, meaning you get paid per unit on what you produce.

Distribution gives you passive income; walk away income.

In network marketing, you are essentially buying a distribution center and then focusing on creating more distribution centers.

If you can personally sell $500 a month of your products, that is great.

What if you could teach 10 other people to sell $500 and open 10 additional distribution outlets? And, what if your company paid you a percentage to do this?

What if you did this each month? Would you spend your time focused on selling your $500 and adding to that, or would you sell your $500 and then focus on creating more distribution outlets?

As your network of distribution centers grows, your income grows. This is passive, residual income.

It's money you are paid for work you do one time!

So, what's your strategy going to be?