The word network marketing has a great impact than any other business terms in the market today. The impact, however, can either be good or bad.
For those who gained negative experiences from network marketing, the very first idea that comes to their mind whenever they hear the word is “scam.” This is for those who find it a fraudulent activity; something that other people uses in order to gain money from them without even returning something good in return.
But for those who earned a hefty amount of advantages, network marketing is a new way of earning a living. They see it as an invigorating change from the typical way of marketing, wherein they can earn more without even doing more.
We know it better as residual income. And this is where network marketing aficionados contend that they alleviate people’s lives more than anything else.
But the question is, especially for those who cannot grasp yet the meaning and the process of gaining residual income; does network marketing provide residual income? Is it really true or just some fancy advertising strategies so as to attract people to join their marketing scheme?
To answer that, let us first define what residual income means.
In simple terms, residual income refers to the continuous payment or compensation that you get even if you stopped working. That is on a monthly basis. For example, once you entered and joined network marketing, the company or the organization will give you a portion of the profits every time the customer you have referred to them buys a monthly quantity of their product. This means that even if you are not selling anymore or even recruiting somebody into the company, you still get to earn some money.
Sounds too good to be true? Guess again.
Most network marketing companies contend that residual income is, indeed, downright achievable based on the premise that what their member earns is just the benefits he or she gets from providing the company a greater source of income that is, referring some customers. And the residual income that they get is the compensation they get from their downline.
Moreover, most network marketing people insist that when you enter into a network marketing scheme, the very premise that you get paid is because you also help other people grow their business that is why you get the profit from whatever income your referrals achieve.
If this is the case, then why the fuss about this matter? What is wrong with getting a residual income?
Actually, there is nothing wrong about it. If you earn, then, that is good for you. But the fact that network marketing asserts a continuous flow of compensation even if you don’t do anything is illogical in the sense that everything you earn in this world has its price. You sow what you reap.
Consequently, in order to enlighten those who wish to know if the residual income in network marketing is true or not, here are some facts that you must know first:
1. A business is a risk.
This means that nobody can be sure that their business will grow or not. Therefore, any company existing today may not be so twenty years after.
If you are to look into the reality, you can clearly see that there were companies that were previously strong and seem to be in perfect business but have already closed down.
2. Everything is a fashion.
Since most network marketing, or any company for that matter, involves a certain product, we can always say that what may seem fashionable today may not be acceptable in a month’s time. Most products that exist today are sometimes in demand because of their newness. But after sometime, the trend dies down and the product is left behind.
3. The concept of “attrition”
Let’s face it. Nothing is, indeed, permanent in this world. People come and people go. When your customers have finally decided that they no longer want your product because they are not satisfied anymore, they would go and leave your services. That is what attrition is all about. It is how your wages deteriorates due to the drop off scale of your client base.
So, now to answer the question whether the residual income most network marketing asserts is true or not – it depends. Like any business or venture, we should always bear in mind that it is not permanent.
The bottom line is that whether a person gets a residual income or not, the best thing to do while still earning money is to save for the future. Never depend on it as if it is a bottomless pit where money comes incessantly.
By: Daegan Smith
Posts Tagged ‘Money’
Is Network Marketing Residual Income a Myth?
December 13th, 2009Network Marketing Scam – How To Tell If It Is A Scam
November 13th, 2009
There are a lot of people who automatically think that network marketing is a scam. This is not true. There are companies out there that are legitimate network marketing companies that are not scams. However, there are also ones that are a network marketing scam. This is why you need to be careful about what you sign up with on the internet. Here are some things that you can look for to find out if it is a network marketing scam or not.
One: You need to look at the compensation plan. Each company will have their own compensation plan. You want to make sure that you understand the plan before you start out with any network marketing company. The ones that you want to do business with are the ones that only offer money to the people who are going to put in the effort to grow their business. When you are willing to do the work then you are the one that should get paid not the people who don’t make any effort at all. When you find a company that says you can get rich quick without having to do anything, you will definitely know that it is a scam.
Two: What is the product or service like? Is it a good product or just something that was thrown together so that it looked like there was a good product? You need to be able to feel good about the product or service that you will be involved with. This is very important because when the product or service isn’t good, you will never make any money because people want good things not worthless ones.
Three: You want to find out what other people are saying about the network marketing company. When you go into forums you will find people talking about the network marketing scam that they found. This will give you a good idea of what to join and what to stay away from.
Do some research on the network marketing company to find out all you can about it. You can even go so far as checking with the Better Business Bureau. The more information you can find out about the more you will know whether it is a network marketing scam. Network marketing will not last long for any company if it is a scam.
You want to be careful and choose carefully before you do any network marketing. You will always be able to find information that will tell you if it is a network marketing scam. The more you know the better your choice will be.
By: Shawn Woods
Multi Level Or Network Marketing – Statistic Or Success?
November 7th, 2009
Probably the first time you went to your Multilevel Marketing meeting you were inspired, you were charged up. The presenter probably told you that this wasn’t really selling, just relationship marketing. Just get two people who get two people and so on and before long, you will be making $$$$$$ per month. Just visit with your FNR group (friends, neighbors, relatives) then make a list of your warm market (about 150-200 people), people that you know and see on a regular basis; the butcher, the baker, and the candlestick maker. Simple, just takes a little work. Oh yeah, you have a replicated website to send prospects to and you will be charged $$$ per month for that.
Well after about two months you are a member of the NFL Club (No Friends Left). Your sponsor says you may need to buy some leads. Or buy genealogy lists, people who have been in network marketing. This will improve your chances of getting leads. Just make about 100 calls a day.
Well after about two months you may have signed up a few people but chances are you are spending more money than you have made. Again this is the result of most people including myself at one time.
Multilevel Marketing or Network Marketing continues to get a bad eye because of these reasons. But it is a business that can give you that extra income from your home. Home based business opportunities give a person the chance to work extra from home and earn the needed money to pay the bills. While $10,000.00 a month income sounds great, most anyone would be satisfied with just a few hundred dollars a month to make a car payment. But if you can make that much, you can make much more. It’s just all in the know how!
And what is that know how? I would never be able to explain it all here in this article. What if you had people coming to you to find out about your product or service? What if you never had to get on the phone and call people to get them in your business. What if you were never subjected to rejection (one of the key reason some people fail). That’s the position where you have to be.
Do you see yourself as successful? Can you see the day when you can be making the big bucks from home? Do you even think it’s possible? If you can’t visualize those goals, you will never reach them. But for those people who get in the right mindset, there are tactics and strategies that the top internet marketers use to explode their business that are available to everyone who has the desire to reach their limits.
One of the most important things these top earners do is change. I’m sure you have heard of the definition of insanity, doing the same thing over and over again expecting different results. Well when something these guys are doing doesn’t work, they change in a heartbeat! They don’t go for perfection, only progress.
Take a hard look at your progress, does the definition of insanity fit you. What are you doing different today in your business that you were not doing last week? Examine yourself closely. You can become a top earner!! Do you want to be a statistic or a success?
By: Mac Caldwell