To fully understand what network marketing is, we must first define what network marketing really is. Network marketing which also known as multi-level marketing (MLM) is a marketing strategy which involves selling and building of network of people who will have the same opportunity as everyone else who are in the network. In network marketing, the income that you will generate is dependent on the total volume of products that were sold by your group.
Here are the 2 popular misconceptions about network marketing:
MISCONCEPTION 1: The people who joined first will earn the most
The fact is that people who joined first will definitely have more potential in earning from the business but the amount of money that they will earn is not relevant to whether they joined first or not. In the best MLM company such as the Amway, you could never earn more than your downlines unless you are more productive than your downlines.
A good network marketing company provides excellent compensation not based on the amount of your downlines but on the amount of volume that you and your team produced. There is a so-called differential bonus commission which will serve as the margin on the amount of money that you will earn. The differential bonus commission is a commission that you will get based on your group's total sales volume minus the group's total sales of your particular immediate downline. This means that if your total group volume is $100,000 and the total group volume of a particular immediate downline is also $100,000, this means that you will earn nothing because $100,000 - $100,000 = 0. Take note that this is just a concept and not the actual compensation plan. Network marketing companies have different marketing plans.
MISCONCEPTION # 2: The people who joined first will use the people
The real beauty of network marketing is that you need to help people earn income so that you can earn more income. The people under your team will only produce bigger sales volume for you but there is no way that you can earn from it unless you find another people who will create additional sales volume. Your team will never survive if you will not help this people that is why there is no way that the people who joined first can use you. In fact, the people who joined first will be used by their downlines because they will become the source of information, the source of aid and so on.
If you are going to join a multi-level marketing company, why not join the best MLM company in the world? Amway is not just the top MLM company in the Philippines but also the best MLM company in the world.
Article Source: http://EzineArticles.com/?expert=Bryan_Sparks
