What is Network Marketing?

Network Marketing is a business model based on distribution. The fundamental success of a MLM business rely much on the ability of its sales force. Typically, there are several layers of involvement and payout structure when comes to network based marketing business. Most companies ran on the principle of team dynamic. That being said team members are helping each other to accelerate growth of the business they are involving with.

Network Marketing

What is Network Marketing?

In the past, network marketers have to travel door to door looking for distributors and business partners in order to expand the business. Thanks to the internet, network marketers no longer have to solely rely on traditional offline channels to recruit members for the organization. Many have turn online and mass recruit potential business partners by leveraging on web2.0 technology such as blogging, SEO, social media and paid traffic (Just to name a few)

Network marketing is often viewed as direct selling opportunity revenue business model whereby the participants act as independent leaders to distribute the products and services to the target audience. The success and failure of a networking business is very much depend on the leadership of the organization.

Sponsors of the companies are required to recruit prospects and train them to become future leaders of the organization and build the business together. In this perspective, commission is earned based on sales revenue generated by the sales force referrals or sometimes called downline. Due to the nature of the business,? network marketing also called as MLM (Multi-Level Marketing). Both structure and payment flows work like a pyramid just like any organization in the Corporate World.

Futuristic Network Marketing: The Internet

Thanks to the internet. Network marketing has evolved and become a new form of marketing. Nowadays, many companies have revolutionized its compensation plan and make it scalable and attractive enough to incentivize members to promote the business yet meeting organizational revenue objective.

Futuristic network marketing companies are able to combine traditional attraction marketing formula plus affiliate marketing elements together and create World class training for its members. Many well known home based business network marketing companies have set themselves apart by leveraging on the internet to achieve massive grow. Companies such as SFI, MLSP and Magnetic Sponsoring are a few pioneers who first embraced futuristic network marketing concept to grow its membership base. Thereafter, many new companies started to embrace similar approaches with different compensation systems. To name a few, companies such as the Empower Network and Neucopia are gaining popularity in the industry.

Is Network Marketing Business Suited for Everyone?

Network marketing is best suited for highly motivated individuals who are willing to work hard in exchange of long term financial freedom.

Network marketing is a lucrative business but the process is not as easy a you think. Many people fail to make money online because they misperceive network marketing is a get rich quick business and require little involvement of time and cost – which is totally misled.

Network Marketing Opportunities

Network Marketing Opportunities

In fact, any form of internet marketing related opportunities very much work like offline business. It does require dedication, commitment and hardwork to make things happen. Thanks to the internet, you no longer have to recruit friends and families to grow your network marketing business. There are definitely money to be made in network marketing opportunities online. Indeed, network marketing is one of the best work at home based business ideas that has ever created. (whoever first invented it)

I used to think that network marketing is a scam, but with the creation of the Worldwide web, network marketing has transformed and become one of the fastest growing passive income opportunities in the home based business segment.

After spending much time studying the structure of network marketing, I tend to like MLM. Not only you will be able to generate residual income but also receive continuous training from the company.

Succeed in Network Marketing Online

If you are new to the industry, choosing the right sponsor to work with is the KEY to succeed in network marketing business. I have seen many beginners give up on network marketing opportunities because they don’t have the right mentors. Either they are too shy to ask for help from their sponsors or their sponsors are ignoring them. Mentorship is important in a network marketing environment. The second part is learning the basic of internet marketing. If you master these two, you will do extremely well in any form of internet marketing business, not just MLM.

Advise For Beginners Who Want to Break into Network Marketing:

1) Pick the Right Sponsor: Apart from joining the right network marketing companies, leadership is KEY in MLM. Before joining any network based MLM companies, it is key to speak to your sponsor and see whether he is the right person to work with. Trust me on this, you would rather prefer to work with someone who can give you guidance rather than hitting the rock all the time.

2) Set a Clear SMART Goal: Learn how to become a trainer. I often recommend my students to take a proactive approach in embracing “train-the-trainer” practices. That being said you must be willing to step up and become a leader, work with your team. Set a clear SMART goal and a 30/60/90 days challenge for yourself and take massive actions.

3) Continuous Improvement: You must not be afraid to make mistakes and continue to learn how to expand your business.

4) Make Mistake and Learn: Make sure you learn from your mistakes, evaluate the results and keep learning. Mistakes will only make you wiser and smarter. Try to master any network marketing tips and advice you acquire from the organization, internet, peers or your sponsor.

5) Learn Internet Marketing: Internet marketing is the fundamental of MLM especially futuristic network marketing has a lot to do with internet. If you fail to master the fundamental of internet marketing, you will not make it to the top.

6) Budget for Success: You must set some budgets to recruit members either via blogging or paid traffic. All these efforts will take time. If you want to scale your business, you must be willing to spend, learn and scale your business. If you just started, set aside $100-$300 per month for recruitment activities. So make sure you don’t quick your job before you start seeing results.

7) Don’t Give Up: Life is a learning experience, so do business. Make sure you monitor your progress and work with your mentor on a regular basis. Be prepared to work hard for 6-12 months before you start seeing the real result.

8) Rinse and Repeat: After your first venture becomes successful, you then can start enrolling into second or third network marketing ventures if you wish

How to Select the Right Opportunities?

Not all network marketing systems are created equally. It`s important to study carefully before jumping into the offer especially you are new to the business.

Below is the checklist I usually use:

  • History of the Company: It’s vital to study who is behind the company, the management and the legal team
  • Portfolio of Products and Offers: To succeed in any form of MLM based business, you need to make sure the Company does have top notch products to offer and promote
  • Continuous Training: What types of training are available in the back office?
  • Commission Structure: How are you going get pay and when?
  • Risk Involvement: What are the risk associated with the business opportunities?

The Pro and Con of Network Marketing

Like any other affiliate marketing business models, network based marketing business has many benefits as well as disadvantages.

Advantages of Network Marketing

  • Residual Income Opportunities: If execute correctly, you will be able to earn real recurring passive income over and over for many generations.
  • Continued Training and Leadership Development: Most online network marketing companies do offer a suite of products for members to learn and grow with the company. A good company will also provide a round up internet marketing training materials teaching you how to grow your network marketing home business.
  • Mentorship Opportunity: If you have the right sponsor, you will be given the opportunity to partner and learn with your sponsor
  • Team Dynamic: You are not alone, you will be able to network, benchmark and share knowledge with your teammate.


Disadvantages of Network Marketing

  • Recruitment is a Continuous Process: Finding the right candidates do take time. Thus you must ready to give your 100% when comes to recruitment activities.
  • How Tough Are You: To survive in MLM, you must ready to step up your comfort zone and take massive actions and learn how to become a leader. To this extend, many people are afraid of taking responsibility and step out of the comfort zone.
  • Cost Challenge: The reality is you might have to spend money before you earn money. My advice for new comers is when you pick a company, just stick to one and work closely with your mentor. Master one traffic source before you throw all your money into different offers and courses.

Attraction Marketing in Conclusion

If you are really into network marketing, you must know the 5 naked truth about network marketing.

  • Network marketing is for long term not short term
  • Succeed with MLM required time and commitment and don’t expect to become rich overnight
  • Network marketing is for serious people who want to make serious income
  • Multilevel marketing is about leadership development and continuous improvement
  • MLM is not for winer and loser. If you are not ready, then don`t commit.


There are many companies out there you can choose to join, but be sure to evaluate carefully. If you don’t know where to start, feel free to connect me and I am more than happy to help you.

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