Network Marketing, What it is, and what it’s not!

by Steven Dobson · 2 comments

What is Network Marketing – network marketing is a method of distribution where a company recruits a sales force and pays them a commission when the company’s products or services are sold. The sales force is allowed to go out and recruit others that also sell the company’s products and services. The person that recruits them is paid a percentage of the company’s profit in exchange for recruiting the new sales person that made the sale. You can grow a network of sales personnel that you are paid a percentage of the company’s profit when a member of your network makes a sale of the company’s products or services.

Network Marketing is not – a pyramid, a pyramid scheme, or a “Ponzi” Scheme (named after Charles Ponzi who orchestrated it in 1919). With a “Ponzi” Scheme or Pyramid Scheme, no legitimate product or service is being exchanged for your money. A “Ponzi” Scheme is based on paying those that invest in it with the money of new investors. When the flow of new investors stops, the “Ponzi” Scheme will collapse and the person or organization running it will disappear.

Why Network Marketing?

Network Marketing levels the playing field by allowing those with very little money to start their own business with very little to no experience.

Who recommends or is in Network Marketing?

Average people from all walks of life are in Network Marketing. So are professional people like doctors and lawyers. So are the Super-Rich like Warren Buffet ( which is part of Berkshire Hathaway owned by Warren Buffett) and Donald Trump (

Network Marketing is also recommended by best-selling authors like Robert Kiyosaki in his new book “The Business of the 21st Century” and Paul Zane Pilzer in his book” The Next Millionaires.” Professor Pilzer predicted in 2005 that the number of millionaires in the U.S. would increase by 50 percent by 2010 from 7.2 million millionaires to 10.8. Well, that number reached 9.2 million in 2007 before the housing debacle and the near collapse of our financial system.

The Internet is the New Economy?

For the first time in years big corporations spent less money on their Super Bowl ads and more money on their online advertising. Thanks to this little internet company we all know as Facebook, fortune 500 companies are paying more attention to their online presence than ever. Online they have greater potential to reach new customers than they ever will through their brick and mortar locations. Just take a look at the numbers for the Fan Pages of companies like Coca-Cola, Pepsi, and Victoria Secrets and imagine the type of business they can generate by having specials just for their online fans.

The beauty of the internet is that anyone can have the type of financial success (maybe not to the same level) that these companies enjoy online and offline. And the best thing about it is that it won’t cost you an arm and a leg to get started.

What does this mean for Network Marketing?

Paul Zane Pilzer said it best when he said that to create wealth (W) you need physical resources (P) harnessed by technology (T). The physical resources in Network Marketing are the products and services of the company or companies that you represent and will be selling on your website, and the technology is the internet.

Network Marketing is the perfect opportunity for creating wealth for the average person with a desire, work ethic, and a willingness to do whatever it takes to live a better life. With Network Marketing you don’t have to have a garage full of products to sell to the new people that join you in business. The company that you represent will take care of the delivery of products and services. With Network Marketing you don’t have to worry about having employees because you run your own business.

The Downside to Network Marketing!

According to SCORE, 52 percent of the estimated 29.6 million Small Businesses in the United States are home-based businesses (that’s an estimated 15,392,000 home-based business or approximately 5 percent of the U.S. population). Unfortunately there is a high failure rate for new businesses with about 7 out of 10 failing within the first two years, and about half of those surviving at least five years. That’s an estimate 95 percent failure rate!

The Upside to Network Marketing!

You don’t have to be part of the estimated 95 percent that fails in the Network Marketing Industry. Most of those failures are due to a lack of knowledge about what it takes to run a successful Network Marketing business.  There is a learning curve that you must go through in order for you to achieve the type of financial success that many leaders in the Network Marketing industry have. This learning curve can normally take about three years to master. Your first year in the Network Marketing Industry you become good at generating an income. Your second year you have a better understanding of all the marketing strategies and you should be generating an income that could replace the income from your job. By the third year you have mastered every aspect of your Network Marketing Business and you should be generating the type of income that you desire.

For the last two years My Lead System Pro has been training individuals from companies across the Network Marketing industry. Some of these members had never had any success in their Network Marketing business prior to teaming up with the leaders at My Lead System Pro. You can test drive the training the My Lead System Pro has put together for 30 Days, and if you’re not completely satisfied, they will refund 100 percent of your money. You have nothing to lose and your financial freedom to gain. Click here to get started!

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{ 2 comments… read them below or add one }

Darron HumanNo Gravatar October 21, 2010 at 2:55 AM

You should seriously think about expanding this website into a serious player in this niche. You clearly have a grasp grasp of the topics all of us are browsing for on this blog anyways and you could definitely even make a buck or three from some advertising. I would dive into following recent topics and increasing the volume of write ups you make and I guarantee you’d begin getting some awesome traffic in the near future. Just a brainstorm, good luck regardless!


Lena FurryNo Gravatar October 22, 2010 at 4:51 AM

I really dig what you write on here. I try and check your site every day so keep up the good writing!


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