Many people sadly have negative perceptions about network marketing businesses. Some, wrongly pre-judge without knowing what network marketing actually is, often wrongly connecting them with unethical companies and schemes of the past such as pyramid schemes.

However, the truth is that a network marketing business is a legitimate business model that involves a company selling products or services through a network of independent distributors rather than using wholesalers and retail stores.

A successful network marketing individual needs to have high quality products that are in big demand and sell them for a fair price.

So what makes this form of business different from any other online business?

The main difference is that this online business opportunity offers a better way to make money on line as there are no limits to how much money you can be paid or earn within what is referred to as a compensation plan.

The compensation plan (or leverage as it is also referred to as) is money that you get paid for sales made by others as well as yourself. Not only can you earn a residual income from sales that you keep making yourself over and over again, but you can also make money from people who have bought items from you. These people are referred to in network marketing as your “down line”. They buy a product from you and they then go on to sell the same products online which you will be paid a commission for. If they then sell the products to other people who also go on to sell to others, they will then become your “Second down line” and you will also earn a commission from their sales. Not bad for doing nothing!

Indeed some of the most recognised companies such as Avon actually use the same system to sell their products. However as with any other online business opportunity, it is important to choose the best network marketing opportunity available as the compensation plans vary greatly from one opportunity to another varying from a few dollars/pounds per sale to thousands.

Therefore in this type of business the more people that you recruit into your business to sell on your behalf, the less you will have to work and the more income you will create for yourself. Whereas if you were working for an employer ,you would only be paid a one off wage increase for any promotion. You would not go onto make money for sales made by your staff. Therefore network marketing really is a great way to make money on a long term basis.

Whether there is a global economic downturn or strong economic growth, people will always be looking for a supplemental income.

Network marketing businesses offer individuals the opportunity to make extra money, with many going on to create a successful home business that can be run from home.
When Money Magazine conducted a poll 64% of men and 68% of women surveyed said that they would choose more time off rather than have more money. Network marketing offers both, namely extra income and more freedom of time.
After all, how many businesses offer the opportunity to not only make an income from your own sales but also from the sales of others?