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What is network marketing and how doesit work?

What is network marketing and how doesit work? Is it a pyramid scheme? Is it a scam? Is it illegal? I get a lot of questionsabout network marketing on this website. And in this post, I'm going to addressexactly how it works. How you get paid, what it is, what it'snot and I'm going to go over 3 specific tactics that you can use to blow up yournetwork marketing business, automate it and make tons of money.

What is network marketing and how doesit work?

Let's get it. Okay,so this is a big pyramid. And this is the compensation structure of networkmarketing. "Doesn't that mean it's a pyramid scheme?" Okay, hold on, hold on. Thisis a pyramid and this is the compensation structure for any companyin existence today. Okay? Any company works with the compensation structurewhere the people at top get paid more than the people working at the cashregister, okay? Every single company I've ever seen in my existence.

 The person whoowns makes way more money than the person who you know, theexecutives running Amazon. And the executives running Amazon in Seattlemake way more money than the drivers actually delivering the product to yourdoorstep. So, just to kind of get rid of this idea, everything's a pyramid schemepeople. Donald Trump is one of the richest people in America. He's also themost powerful person at top. Look at any world leader. They're generally richer.Most world leaders are richer than the common folk. So, everything is a pyramidscheme by that. The second thing you have to understand what network marketing isnot.

It is not taking advantage of friends and family if you have whatevermost people have like 5 friends. If you have 5 friends you get all ofthem become customers and you make $100 each, your business is done then. Youaren't going to make any extra money. What network marketing is not is... It's youknow, it needs to be a sustainable business out and it you have to gooutside of your friends and families. So, selling to friends and family is noteven a question. It's not even the way you should do network marketing. It's atactic but it's not a sustainable tactic. Now, the third thing that work marketingis not. It is not get rich quick, okay? You can get rich quick but generallyspeaking, this is a business. This is a self-employed business where you have towork hard to sign up people to buy the product or the opportunity. I'mgoing to go into compensation structure in just a second here. Okay, so in networkmarketing, you can make money 1 of 2 different ways, okay? On one hand, you cansell the product. For instance, Herbalife. You're selling protein powder andsupplements. Other companies you can sell skincare. Whatever it is. On the otherhand, you could sell the opportunity. And selling the opportunity is getting otherdistributors, is what they're called or other people signed up to sell productsfor you, okay? You're creating a team just like any company has a manager and theyhave employees under them.

So, you're creating your own little business.Iit'sone of the fastest ways to create your own little business. Now, before I get toodeep into things. If you do network marketing, type in the company you workfor or you did work for in the comments below. And if you did work for a companyor tried it, let me know how many years ago you worked for that company. You know,there are a lot of companies out there. And an interested to know if any of youhave done it before. And if so, what companies you worked for.

Now,let's say you're up here and you sell... You get 2 customers that buy theproduct from you, okay? So, you get a customer right here that buys theproduct and then you get a another customer who's more interested instarting their own home business selling the opportunity, okay? So, either way, youget 50.... Generally speaking the compensation planlooks like 50%. So, you earn 50%. So, let's just say... Let's make thenumbers easy or $50, okay? Every month from this person. Now, with the secondperson, you're selling the opportunity. You'll make $50 a month.You know, you're making 50%. But let's say they also signed up to people under them,right? Presently, you are making 25% of whatever these individuals make. So, in essence, this onecustomer, you're earning $50 a month plus $25 a month times 2. So, you're earning$100 a month off of this one person. Now, here's where it gets a little crazy isif those 2 people sign up, if those 2 people decide to start their own teensand bring people under them to start selling the product, then you make apercentage. Something like 5% of those customers. Now, this is what itlooks like when you add like a 3rd tier or something like that is that you startmaking money from those people you sold. But then you start making money from thepeople they sold and then you start making money.

People built teams underthem. So in essence, you know, I just did some quick math here. But you would make$50 from the top person whereas you made from the one customerwho bought the product whereas you make $130 a monthfrom the person who's selling the opportunity. And from that person sellingthe opportunity, they're signing up more people. So they're expanding. And that'swhere the forms of leverage of network marketing come about is that you cansign up a lot of people and it will continue to grow even if you're doingnothing. That's the dream. Now, this is starting to look a little apyramid-shaped, right? It's just people selling people selling people sellingpeople. Now, where network marketing companies become pyramid schemes is whenall they have is an opportunity? They don't have an actual product that isbeing sold. So, if you are only selling... If all the company does is have anopportunity rather than an actual fundament of... You know, whatever that'seducation or a physical product or something to... You know that... That'sthe real thing they're selling. Then it's just a money game and that's a pyramid scheme now the other thing you'll notice is this is not affiliate marketing although network marketers, shame on youif you're calling it affiliate marketing. It is not affiliate marketing becauseaffiliate marketing doesn't have multiple tiers of referrals.Generally speaking, affiliate marketing, you only get paid if somebody buys theproduct. Some companies have a second tier where they pay the people who referthe affiliates like me, okay? Because I refer a lot of affiliates to a lot ofcompanies. But that's where it stops. Affiliate marketing and networkmarketing are different because network marketing has so many different layerswhereas affiliate marketing, 95% of the time it stops at one layer. Oh, sorry. DidI just get a phone call that you want to learn the 3 ways to start gettingcustomers in your network marketing business, okay. Okay, I'll get to thatright now. Here, let me get to that. Okay. So, let's get to the 3 ways that youcan examples of how you can sell and get customers to your network marketingbusiness. Alright, however first there's a statement from John Rockefeller which isI would prefer to gain 1% of 100 individuals efforts rather than a100% of only my own efforts. This is an interesting quote. And therichest man who ever lived in the world said this. And the reason is is becauseif something happens to you, you get sick, your mom gets sick and you want to visither. Your car breaks down, you just feeling low-energy you're exhausted at aparticular day. You're hungover. You feel like going shopping. There could be amillion reasons why you don't want to work. When you have other people workingfor you, you continue making money no matter what. A network marketing is thefastest way to build teams, to build your company and have people working for you.Let's move onwards. Okay, so now we see... Check this video out and now this is agirl. You can see she has a YouTube channel. Her name is  Amy Darlie or that'swhat she says her name is on YouTube. And she's 68 thousand subscribers andshe is selling the product. She works for a company called Rodan and fields. Andyou'll see here, she is talking she is showing her actual skincare routine.She's showing how the product works, why it's better.She's showing how she applies it. She's teaching how she uses it and she evenscrolls through and shows you the ingredients and what other people aresaying about the product. So, this is a good way of selling the product. Andagain she's doing it through YouTube because people want to see how somethingis applied when they're buying skincare products.

Let's move to the secondexample of how you can sell network marketing by selling the opportunity. Ifyou saw the math that I just did, you would have seen that you actually end upmaking more money if you sell the opportunity than if you sell the product.And it's because you're building a team and you're utilizing leverage. So, you canmake almost three times as much selling the opportunity which is why many peoplesell the opportunity. And also, we're part of a growing trend. A wave that is goingto continue taking over where people want to work for themselves. People wantto go back to being in control of their life. And if you are committed to takingback control of your time from the fake news media, from the social media andfrom the corporate world who wants you to be a slave, write in the comments "takeback control" #takebackcontrol because this is a serious much biggerdiscussion we should all be having but this is one of the methods that you can.Let's go into ,Let's go into how to sell the chance. OK

so here we are in a article for again Rodan and fields and it's a video by Sarah Robbins.Noticeit's opening with decent vehicles demonstrating extravagance things and in light of the fact that it opportunity. And here is one of I guess one of the top network marketersin the world. Sarah Robyn showing how great thiscompany is Rodan and fields and talking about how it's changed her life and howit can for you too. One quick note about networkmarketing which is kind of interesting is that there's more women that tend tobe in network marketing because I think women are better at socialmedia, they're better at networking. I don't know why. Sorry I'm generalizingbut it is something you tend to see. Now, she's selling the lifestyle and theopportunity, that's great. YouTube's great. Let's go on to the third method that youcan sell network marketing and get customers. But this time I'm going to lookat a man at Instagram and his name is Brandon Tieger, okay? Right there BrandonTieger. Asian guy from Australia. And you see... What do you think he's selling? Doyou think he's selling the opportunity here or do you think he's selling theproduct? I don't even know what the product is in this. It looks like there'stwo cute blonde girls. You know, I don't think  he could sell those. So, he'sselling the opportunity and he's selling the lifestyle. And you can see, he likesfancy cars, expensive sneakers and good lifestyle, palm trees and all that jazz.The way to sell the opportunity is to show off the lifestyle. You want to showthe money that people can make with the company if you're going to sell itcorrectly. No, I don't sell network marketing but I would be good, I think It's selling it. If I like, if I were to get into it. Boom baby! So, that's how it'sdone. You saw a couple examples. You learn the compensation structure. You learnmost importantly what network marketing is you learned what is network marketing and how it's work.thank you.