Network Marketing 101 – Getting Paid
When you work at a job, you perform your given tasks and get rewarded a week or two later. If you continue to perform, you continue to get rewarded. That is called linear income. As long as you do the work, you get paid. When you stop working, your pay also stops. If you take a portion of all you earn and invest it, you will develop a passive income over time. Let’s say you earn six percent on your investments. Do the math and you will see that every $200 in your account will earn you $1 each month as income. Looking at it another way, if you wanted an income stream of $500 per month, you would need 200 times that or $100,000 in your account. That might take you some time to accumulate.
Network marketing offers you the opportunity to generate leveraged income. As you train and develop others, your business grows. By helping your team achieve their goals, you build an organization that grows with or without you. Most people, when they find that they can do something right one time and get paid over and over get pretty excited. But, some don’t. You know the type: they would rather watch TV, drink beer, and complain about their situation than to actually do something for themselves and their family.
When you are a network marketer, you are the CEO of your company. You are your only employee. You contract with a supplier of goods to gather customers for the product and customer gatherers to help grow the business. Rather than spending money on expensive advertising, the supplier pays the customer gatherers for word of mouth advertising. Assuming the product is valuable, unique, and consumable, you alone determine your income. The more of the product that flows because of you, the more your check becomes. The network marketing company and you decide on the compensation you receive. You are an independent contractor providing a marketing organization to the company. The larger your organization, the larger your compensation.
You are a connector. You connect customers to the network marketing company and you get a reward every time a customer purchases the product based on your recommendation. Once you enroll a customer, you continue to be paid each time the customer reorders from the company. You also connect customer gatherers to the company. When each one signs a contract with the network marketing company, you receive a referral bonus. When you provide training and help your new partners grow their business, you get a training bonus.
The above is true for any legitimate business arrangement. You just need to pick a company and get invited to join. The person inviting you is your sponsor and will train you to find and enroll others. A good sponsor will work with you, providing on the job training until you are competent to train others. You must be passionate about the products and use them yourself or you will simply be a salesperson. If you use and believe in the products, you can simply recommend their use to your friends and family. That is your personal network.