What You Need to Know About Network Marketing Before You Quit Your Day Job

Whatever company you decide to work for as a network marketer or multi-level marketer, you will be in the business of direct sales. Direct sales describes the sale of goods and services direct to the consumer rather then from a fixed retail location.The global direct selling market exceeds $110 billion in sales every year. There are experts in the field of direct sales who predict that this will exceed $1 trillion in five years. If you think this is a great opportunity, you are so right!Just about everything you can purchase is present in the direct selling market. You have to choose which products you are passionate about and look to that industry for your business opportunity. The largest percentage of people who have a direct sales business are women. They represent 80% of the direct sellers.Having a business in direct sales has many advantages. Because you are classified as an independent, self-employed operator or contractor you receive large tax breaks. Your income is based on commissions, bonuses and overrides on personal and group sales, and typically is on an escalating scale. The higher your sales the more you earn because of the higher percentage applied at these higher levels.Some people refer to network marketing (also called multilevel marketing or MLM) when what they really mean is it is just an extension of direct selling. Direct selling refers to how the products are sold and network marketing refers to how one gets paid for building an organization.One of the largest benefits of network marketing is the ability to get paid on the income of your team members. These are the people you recruit to do the exact same thing you are doing. In this way your are helping others become successful and at the same time growing you organization.Some of the terms you need to be familiar with are:1. Width: This is used to describe the people you recruit; also know as the first level2. Depth: Refers to the people recruited by you who then recruit others in their first level and so on3. Leg: This term describes the genealogy of your recruits; the people recruited downline from each of your first levelsBecause companies who use direct selling as a means of distribution can pay such high levels of commissions (up to 50 percent) you have a greater opportunity for earning potential. These companies to not need to rely on more traditional forms of advertising, sponsorships, and celebrity endorsements to promote their products. After all they have you taking directly to customers.One of my favorite reasons for becoming a direct seller everything is taken care of by the company you represent. Things like inventory, shipping, production, packaging and customers can order direct. This frees you up to do what you are paid to do, which is sell products and recruit and train others.One last point that you must be aware of before selecting which company you would prefer to to business for and that is this: know the difference between network marketing and a “Pyramid”. Pyramid schemes (sometimes referred to Ponzi schemes) encourage and reward people for recruiting when their is little or no value in the product or service. If there is no product or service that you recognize as having value do not invest your money. These companies have a very short life span. Also stay away from companies that expect you to buy large amounts of their products, which usually end up unused and wind up being stored in your basement or garage.The easiest way to recognize a company of outstanding quality is to look into their vision, their length of time in the market place and their plans for the future. Always remember to do your due diligence.

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