Is it any more different than in the Corporate World?
I’m not going to discuss actual pyramid, ponzi schemes today where money goes up the chain and nothing of value in a bag, bottle or box comes back down. I want to talk about the argument between real world Corporate structured Companies versus Network Marketing, Direct Selling, Home Based Businesses.
And much to my reader’s surprise, this is going to be real easy, short and accomplished mostly with a diagram.
The Traditional Corporate Structure Compensation Plan:
As you can see, the person at
the top, the CEO, makes the
greatest amount of money. If
you also note in this diagram,
there are 5 pay levels,
CEO, President, Vice-President,
Manager and then the humble,
slave labor, hard working employee.
It is doubtful that the CEO ever invites the employee to his home or gets on a training call with him to teach him the skills necessary to earn the same or better income as him (The CEO).
However, with a home based business there are different type pay plans, the binary, matrix, breakaway, uni-level, and hybrids of all (I am not going to go into Aussie 1-up, 2-ups as most of them are negligibly legal to begin with).
In the more ‘streamlined’ Network Marketing structures, you can actually surpass the person above you in level of accomplishment and income.
Next time someone tells you that Network Marketing is a pyramid, where only the people at the top earn the big money, I hope you will remember to draw out the above diagram for him/her. I am not saying the person is going to like it too much (dependent on their own mindset); however, I think you will have proven your point.
Key Benefits of Network Marketing
Network Marketing is a system to move services and products between manufacturer and the end user consumer through "Word of Mouth" or personal recommendation, which is a very powerful and know system of advertisement. What action do you take when a friend who has seen a nice film and they tell you also to see the film? Now, just imagine what would happen if your pal was paid a nice royal commission each time he tells someone and he sees the film. If that is the case, he would obviously tell more and more individuals about the film. I think you must also be interested and would like to know more, isn''t it? This is exactly what we do in this network marketing business.
What are the characteristics of a typical network?
In a typical network marketing association you are positive to make a network of distributors who possess equivalent opportunities to make money or even make more income than you. This network marketing method is something you can begin from down below and advance to the uppermost top achiever by encouraging and building your own network business.
This typical network marketing has many benefits. It also frees up a lot of capital, because we eliminate retailers, wholesalers, warehouses, and the big advertising budget that business and industries normally spend thousand of dollars on. So, whatever money that is wasted in the traditional business can now be channeled into mainly 2 areas - to distributors of network marketing business and to Product development and research.
Many times you will also see some of very advanced cutting edge, products which are only available through the consumer except by way of Network Marketing. Why is it so? It is so because they have spent money in product development and research and also on distributors who sell these products by way of network marketing.
Recently Network marketing is the "Most powerful way to reach the end user" as quoted in Success magazine. We now have many companies like Microsoft, Coca Cola, IBM, Sharp, AT&T, Gillette, Texas Instruments and Colgate distributing their products via this Network Marketing system. These big companies are proof enough of the network marketing credibility and success. And within a few years, probably within the next 10 years, Network marketing industry will be distributing more services and products to the end user.
So now, what does this represent for you?
The main benefit with this network marketing system is that it can make an average individual wealthy within a short period of two to four years. And if you are working for this business for say 7 to 10 hours a day, you can even double or triple your earning well within a period of 2 years. You can even create life long residual income where you can earn for efforts you put in your past. One of the main benefits of this network marketing business is that you can have unlimited earning potential. Yes, complete monetary freedom from the terrible rat race we are living in now.