The simplest explanation of network marketing is that it is a method of marketing that utilizes independent representatives to reach potential customers that a company otherwise would not reach with traditional online or offline marketing methods.

In order to accomplish this, network marketing companies and their associates recruit individuals I.E. “their sales force,” just like other companies and franchises, have done for years, take for example the insurance industry.

How often have you seen ads on television that use the term, “Independent Insurance Agent or Associate?”

Yet, as we watch these advertisements we naturally assume they are employees of the company, when in reality they are independent business owners!

No doubt you have noticed as you have driven through your neighborhood many of these small businesses, they have signs and other advertisements designed to draw your attention to them.

Yet, you will rarely see advertising from the approximately 13 million people who are either involved with direct selling, or in the network marketing industry according to figures by the Direct Selling Association (DSA).

There is distinct difference between us and them, in most cases they are assigned an exclusive territory and therefore cannot market outside of their assigned territory. Where as in network marketing in most cases, you can market just about anywhere your company is established!

Why are companies willing to pay you to market for them…

…Why don’t they just utilize the internet or other traditional marketing methods?

It’s quite simple, they want access to your network, that is your network of friends and family members! Today there are hundreds of companies offering products and services. Many of these products and services you recognize by their brand name!

The products and services you can market today cover everything from Communication Services, Internet Access, Nutritional Products, Weight Loss Programs, Water Filtration Systems, Financial Programs, Electrical Power, Solar Power, just to name a few.

So why do they need us? Traditional marketing methods have companies spending millions of dollars each year to market their products and services.

They know that word-of-mouth marketing is a far more powerful and effective method of marketing, especially, when that message comes from those whom we know and trust!

And these companies are more than willing to pay you, to communicate this message to your network of friends and family.

It is extremely important to understand that this method of marketing is not about bugging your friends and family members, as many would love for you to believe.

It is about your ability and skill to determine from those individuals within your circle of influence who would be interested in the products or services that your company has to offer…

… That information alone is one of the critical elements that separates those who fail, from those who go on to become very successful!

And occasionally you might uncover a few individuals, who also want to start a business!

I truly believe Robert Kiyosaki summed it up nicely; it really is the business school for people who like helping people!

If you want to call your own shots in life, if you’re willing to get the education you will need to run a small business, if you enjoy working with people, then network marketing just might be right kind of business for you.

If on the other hand, you’re only in it for the money or you just don’t like dealing with people well then…

… You’ll most likely end up failing!

Personally I’ve found running a network marketing business to be a very rewarding. While it does give you the freedom from punching someone else’s clock, now you’ll be punching your clock and will have to hold yourself accountable!

If your currently employed the training you’ll get from having a network marketing business will give you a deeper appreciation of what your employer has to deal with on a daily basis. You will also become a far better communicator, someone who really listens and address the wants and needs of others!

With the economy the way it is today, working from home makes more sense then acquiring a second job in order to make ends meet. And thats if you can find one!

Today there are millions of people around the world building this unseen industry called network marketing.

The DSA reports that there are over 13 million people in the U.S involved in direct selling.

You do not see them but they are everywhere, some probably right in your own neighborhood. It is a business in which common people can invest a small sum of money and rise to staggering levels of financial reward and personal freedom.

Each day millions of people report to work, where your employer leverages your time to build his or her business and financial future.

In Network Marketing we help and assist others in building their business. We are also leveraging their time, with each of us is gathering customers along the way.

Hence the name Network. We get paid for this because we are assisting, coaching and helping them to establish their business. Helping them to reach their goals for their financial future. So Its only right that we also get paid for our time?

Just like your employer leverages your time, through network marketing you can leverage the time of others. What does this mean?

Lets take a look at a typical employer in a service industry with 100 or more employees. That has a labor rate of 60 dollars per hour. The goal of our employer is to keep each employee active and busy for each hour paid.

Out of this once all the costs of doing business are factored in such as wages paid, health insurance, unemployment insurance, federal taxes, state taxes, fica taxes, permits, maintenance, housekeeping, the list just goes on and on. The employer may get to keep 5 to 10 dollars per hour of that labor rate.

In Network Marketing, we have our initial start up costs anywhere from just a few dollars to several hundred dollars. Where most network marketers fail is they feel that they don’t need a marketing budget for advertising, they don’t seek out the education required to succeed.

One of the important things to remember is, you are in a real business, you no longer have a boss holding you accountable. Your network marketing success or failure is dependent upon you and your actions.

Your primary task will be to gathering customers for your products or services. To help and assist others get started in their own business partnered with you. You are looking at a business model that will take 3 to 5 years to produce the kind of results you’re looking for.

So don’t give up your day job just yet. It will require 5 to 20 hours of consistent time and effort each week to build a successful Network Marketing Business. It will require a marketing budget, most people do not even consider this.

This is a real business this is your business, not a get rich quick overnight program, although it has been hyped by a great many naive marketers and web sites.

Network marketing is based on word of mouth advertising which is the most effective form of advertising. Think about it when you go out, watch a great movie, you will go out and tell people about it.

When Sam’s club or Costco moved to your area, you joined their buying club and started telling everyone how much you saved. This is the power of word of mouth advertising.

Major advertising agencies and companies count on this. This is one of the things that we do as network marketers. The major difference is that we get paid for our word of mouth advertising.

One of the most often asked questions is, will I have to sell products and services? The answer is of course yes.

Think about it, no one likes to have a salesman or woman come to the door and sell them products right.

We hate to go to the automobile dealers, where we are swarmed with 5 different sales people all trying to get you to buy from them right!

So how are we as a network marketer different? We recommend products or services that we like and personally use. If we know it’s good and personally use it, recommending it to our friends and family is very easy.