Understanding Network Marketing

Network marketing in my understanding is a relationship business otherwise known as consumer distribution business in modern terms. It is commonly called referral business.

It is a business that you refer people and earn commissions(recurring/residual income).



You don't need to create your own product/service, no stock/inventory taking, no creation of website, no store and no follow-up by you etc.

You just plug into an established company and begin to enjoy their expertise.



The backbone of Network is in Metcalf's Law which states that, "A network's Economic Value= No. of users."

Eg: if there exists just one telephone, it really has no economic value. The economic value of a network goes up exponentially, not arithmetically.



Here is what Robert Kiyosaki said about network marketing:

"The richest people in the world look for, and build networks, everyone else looks for work."



The beauty of network marketing is that it has made available to the average individual, people like you and me the power of Metcalf's law...

but you must obey the law. If you follow the principle of the law, just joining a network marketing company is a good start, but just joining does not entitle you to harness the power.

It would be like you're buying a telephone but you're the only one with the telephone.



In order for you to harness the power, your job is to clone or duplicate someone just like you. The moment there are two of you, your economic value is squared. the value of your network has just gone from 0-4. If the 2 people you bring in also develop 2 more people each, the economic value of your network begins to look like a rocket taking off for the moon. Instead of working hard arithmetically, your economic value begins to grow exponentially.

That is the power and value of a networked business.



In my opinion, working hard to build a network makes more sense than working hard as an individual. Immagine the diffrence between how many rocks you could carry by yourself from point A to point B and how many rocks nine of you could carry from point A to point B. Even if you only earn 10% of what the other 8 are doing, it is 80% you earn with NO effort on your part.



In the long run, a successful networker has the potential to outearn most professional people such as doctors, lawyers, accountants and other rugged individuals.

The difference and the power are explained through Metcalf's law... a very important value of a network marketing business.



I truely believe that this is the greatest industry on the face of the planet for true, long-term residual income. There is nothing that even compares to network marketing.



The gurus will tell you that the real money is in "RESIDUAL INCOME."

... income that comes not just from your effort but from the efforts of other people while even sleeping.