A definition according to Wikepedia, the world’s best free encyclopedia

Network Marketing, also known as Multi-level marketing (MLM) is a business distribution model that allows a parent multi-level marketing company to market their products directly to consumers by means of relationship referral and direct selling.

Independent, unsalaried salespeople of multi-level marketing referred to as distributors (associates, independent business owners, franchise owners, sales consultants, consultants, independent agents, etc.), represent the parent company and are rewarded a commission relative to the volume of product sold through each of their independent businesses (organizations). Independent distributors develop their organization by either building an active customer base, who buy direct from the parent company and / or by recruiting a downline of independent distributors who also build a customer base, expanding the overall organization. Additionally, distributors can also earn a profit by retailing products which they purchased from the parent company at wholesale price.

Distributors earn a commission based on the sales efforts of their organization, which includes their independent sale efforts as well as the leveraged sales efforts of their downline. This arrangement is similar to franchise arrangements where royalties are paid from the sales of individual franchise operations to the franchisor as well as to an area or region manager. Commissions are paid to multi-level marketing distributors according to the company’s compensation plan. There can be multiple levels of people receiving royalties from one person’s sales.

Sounds simple?

Well, the above explanation sounds straightforward. But why still so many people fail in network marketing business?

Most people have the wrong impression of network marketing business. To them, it is an easy and quick way to earn lots of money. To a true blue network marketer, building a successful network marketing business means that you need to do two things: Work & Marketing. You have to put in your time and effort.

Why Donald Trump recommends Network Marketing?

Marketing is a powerful tool, and Network Marketing can increase that power, provided you are self-motivated. In a simple visual, see a product and then remove the advertising agency from it. It is up to you to do the marketing and advertising.

That’s a big job, but it can be done if you are passionate enough to get it going on your own and to keep the momentum and motivation going at a high level. It requires an entrepreneurial spirit, and that means focus and perseverance. I do not recommend Network Marketing to people who are not highly self-motivated.

You are also the Product of your Network Marketing Company

Network Marketing companies are patient and will invest in you, even if you are not successful. As long as you are willing to put in the time, most companies will work with you in your development. After all, they want you to get to the top.

Your role is also to train your team of downlines. To build a successful Network Marketing business, you need to have well-trained people in your team thus producing well-trained leaders. If you are doing real estate or insurance, closing a sale is everything. In Network Marketing, closing a sale is the beginning. Network Marketing is about Duplication if you are serious about earning passive income. So you need to duplicate and groom Leaders in this business.