Where Does Money Come From In Network Marketing?

"Few things are impossible to diligence and skill... Great works are performed, not by strength, but perseverance."

Samuel Johnson




Where Does Money Come From In Network Marketing?

People often ask " where does all this money come from?" I have come to appreciate that money is, as acclaimed, really an emotional subject. In my quest for knowledge and truth in the subject of network marketing, I noted that this is one of the biggest questions that send chills into the spines of the prospected majority. It is most probably because nobody, so to speak, would like to be involved in any money laundering or pyramid sort of a scheme. It is conscience. Another group of people also simply get scared when they hear of the possibility of getting quite large sums of money in a very shorter period of time beyond their imagination. They cannot their manhood/womanhood to comprehend that.


The moment one understands how Network Marketing (NWM) works and how it is different from the traditional marketing, then it becomes clear that there is usually a lot of overhead costs in the latter. Consider a corporate company which has to, first of all, make the products known by target market through advertisement. Every business owner will agree that the largest chunk of expenditure within any fiscal period goes to the sales and marketing department. It will included mounting billboards, running TV and Radio adverts, promotions, demos among others. This becomes a perpetual project for a company that worths its salt. But it is never the case in NWM and thus all this money can be channeled toward the distribution conduit; the distributor.


Again if we look around, ordinarily we see companies fighting for recognition in high platforms at national and multi-national levels during various occasions including National Holidays or any other even that brings an interest group together. They go ahead to do quite some work in line with Corporate Social Responsibility (CSR) and proceed further to finance a number of activities to boost their images. This idea, as well, is not present in network marketing. All the resources that would have otherwise been committed to such projects go along way in funding the marketing plan.


In NWM, the company only funds formally organized company events and functions. The distributors themselves are the advertisers, wholesalers, retailers and consumers. There is absolutely nobody between the consumer and the manufacturer unless the consumer himself/herself has not registered and thus gets products from the distributor directly. I trust now you can see the source of money for our excited distributor. Conventionally every person in the middle adds cost without any appreciation in quantity or quality of the product. They are just but brokers. Which, in my view, is not very fair


Is Network Marketing a Real Business?


It is a question that many people ask themselves whenever they encounter such an opportunity for the first time. But the fact is that Network Marketing(NWM) is a real, true business categorised as belonging among the big businesses that can propel one from grass to grace, from the life of debts to the life of abundance. It not a bad idea to be cautious before jumping into a new idea, but too much caution will never lead to success.


Network Marketing is also refered to as a Multi-level Marketing (MLM) or Direct Sales in some quotas. It is a business system that aims at bypassing all the traditional middlemen in the machandise distribution chain and linking the consumer, who also becomes the distributor, directly to the company through partnering. The distributor, by paying some minimal fee for a business kit and lincense, starts his/her own big business and builds it using the laid down plans.


It is important to remember, from Robert Kiosakis Cashflow Quadrant, that one is either an employee or an employer. You can be an employee of somebody, company or of your own self. To be an employee has little chances of leading you to financial freedom. On the other hand, one can be employing money or people to generate more money. They usually create systems that the employees work for. The business sytems they own are categorised as Big. The system delivers money whether or not you are there. Network Marketing comfortably falls into this category without dehumanizing other people. It brings a win-win situtation. I was once a skeptic too and thus the inspiration I have to put it to people that this business is Holly and Legitimate.