Network Marketing 101: The Importance of NOW Money

I know that you probably joined your network marketing opportunity because of the chance to earn a long-term, residual income. That's why most people get involved and that's great. Just for a second,step back and take a new look at your networking business (or one you're evaluating) and ask yourself, "Does this business offer NOW money?"

As you know, most experts predict that it will take three to five years to build an organization large enough to generate residual income. Up until that point, you're covering all of your business costs out of pocket. Plus, you have the problem of keeping new, inexperienced distributors motivated while they're building their businesses.

What if there was a way for your business to cover your recruiting expenses from day one and for new people to make money from the start, before they have a large group? Well, there is and that is what I call NOW money.

Now money comes from the retail sale of products to people who are not involved in the compensation plan. In days gone by, this was a big part of direct sales and network marketing. In fact, all of the long-term leaders in the industry promote retail sales to non-distributors. This is a major factor in distinguishing a legitimate network marketing opportunity from an illegal pyramid scheme.

If you are involved in a company (or looking at one) who doesn't promote retail sales or who doesn't have a product that would appeal to those not paid to market it, I strongly urge you to RUN away as fast as you can. You will never have any long-term growth as long as your product only appeals to those paid to sell it. Could you imagine if McDonalds stopped selling hamburgers to consumers and only focused on recruiting new franchisees and selling products to them? How successful do you think they would be? You're right; they wouldn't be successful at all.

Retail profits offer the new network marketer the chance to see immediate results on their efforts and the ability to offset business expenses. When you have people who are making money right away, you're a lot less likely to have distributors who become discouraged and quit.

It's too bad that many network marketing companies either ignore retail sales all together or only pay lip-service to the practice. These are the companies who aren't truly thinking long term. Since many distributors will never sponsor a soul, retail profits are the only way for them to make money. If you take that away from them, they will eventually quit.

In order for network marketing to work in the long-term, you need to find a company with real products that will appeal to the general public to help new people earn money from day one, while they build toward their financial future. The long-term giants like recognize this. What about your company?

About the author: Tim Hicks, DD has been helping people to start REAL home-based businesses and avoid scams for over 22 years. Tim invites you to visit his websites at http://www.TRH3.com and http://www.TimHicks.com.