Network Marketing 101

Network Marketing, also known as Multi-Level Marketing, is one of the most discussed business models of the last 50 years. Why is this model so popular? For one, it is one of the most lucrative and ethical ways to do business.

Are you surprised at that statement? Let me explain.

The corporate structure, as we know it today, is set up in a way that does not allow the typical, middle-income, employee to achieve wealth. Corporate restricts us in two ways.

  1. It does not allow us to leverage our time.
  2. It does not allow us to collect residual income if we choose to stop working.

Here is a definition of residual income by Marty Foley.

Residual income (also called passive, or recurring income) is income that continues to be generated after the initial effort has been expended. Compare this to what most people focus on earning: linear income, which is "one-shot" compensation or payment in the form of a fee, wage, commission or salary.

Linear income is directly proportional to the number of hours invested in it (40 hrs. of pay for 40 hrs. of work), but one of the great advantages of residual income is that once things are set in motion, you continue making money from your initial efforts, while gaining time to devote to other things... such as generating more streams of residual income!

Why does the CEO make so much money in corporate? Well, for one, he makes decisions about how his employees will work to achieve what he think their effort will achieve. To put this in perspective, here is an example.

During the course of a day, CEO, Mr. Sam, implements a system where the completion of each task will be double checked by another employee. This is a little extra work for his employees, but he thinks their extra effort will be worthwhile.

At the end of the quarter, mistakes are minimized, quality work has increased