Network Marketing
Sometimes the words 'Network Marketing'
conjur up fear in the minds of people who have been subjected
to the 'sharing' of a terrific 'opportunity' by their families
and friends. It can seem like network marketing - or its
previous name 'Multi-Level Marketing' (or MLM) has evolved into
a frightening system that people don't want to be involved
with.
Compensation Plan or Business Model
Network marketing is really a compensation plan. The real
point of network marketing is to allow the representatives to
build and train their own sales organizations, and to give
overrides to compensate for the extra efforts of building the
sales organization.
The push for it being viewed as a business model really
comes from the training that so many organizations use to help
the newest members get started. In most organizations, there is
no requirement that you follow the business model beyond the
point of making sure any marketing materials you use to present
the product itself are compliant with the terms of your
associate agreement.
|