You may very well be aware of the reputation the MLM and network marketing have when it comes to people being able to create real freedom in a financial sense. In this article, you will learn what makes that possible, and why something known as, duplication, is so very vital to the process.
To clear up some confusion, be aware that MLM and network marketing are terms that are used interchangeably. They are two different ways of saying the same thing. Network marketing is the newer of the phrases, and it references the teamwork aspect of this method of making money. (You network with others.) The actual pay plan is what is referred to in MLM, which is short for multi-level marketing.
It is funny how so many individuals are under the false belief that MLM companies are illegal, even after all these years. The reason for that confusion is the payment structure is reminiscent of pyramid schemes, where there are no products sold, but everyone pays money to the people who recruited them.
Those are completely different kinds of enterprises. It does not make sense to dislike the concept of network marketing because pyramid schemes also are in existence. That would be similar to never wanting to ride in a motorized vehicle because most bank robbers use cars to help them get away. It’s just silly
There is so much potential to earn a great living with the right network marketing company because you work with others, as a team. There can be several levels of people that you can make money from when they buy or sell products. When you buy or sell anything, there are people in the levels above you that are benefited.
The real success stories in network marketing come from the process known as duplication, which can be extremely powerful. Duplication is what happens when you refer someone to join under you and you teach them to be able to refer others — and then they do, and teach their referrals to do the same. Duplication is downright powerful.
When there is a lot of duplication over the course of time, the creation of wealth is a distinct possibility. If you can not create duplication, it might still be possible to make some money, although not nearly as much.
Here’s an example: The monthly commitment is for purchases of at least $50 a month. You get the biggest commission on your direct referrals (first level), and less money on your the other levels, your indirect referrals. Let’s say it’s $10 on level 1, $5 on level 2, $4 on level 3, $3 on level 4, $2 on level 5 and $1 on level 6.
If your organization, that is to say, your downline, has a lot of duplication, then it could be possible to eventually make considerable money just from your sixth level alone. That is the power of duplication. However, what would happen if you are good at recruiting, but you can’t teach anyone else how to duplicate? Well, you could still make some decent money, from the $10 per month residual income on the first level. It won’t be anywhere near what it could be with duplication, though.
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