Principles Of Network Marketing Business

In this post i will discuss two major principles that drive the success of your network marketing business.

This will also be very useful in explaining to prospects how network marketing works.

1. Broker & Agent Principle

For this principle I want you guys to think about how a real estate business operates. Here's basically how it works - Imagine you want to start a career selling houses, you would have to be hired by a dealership and you would start by working as an agent for a broker. A broker is someone who has the ability to hire multiple agents. A brokers job is to put in the time and effort into mentoring and training the agents to be ready to sell a house. The broker will also usually pay for advertising for the agents. So when you as an agent sell a house, majority of the commission will be paid out to you, however a small percentage of the sale will be given to the broker. Why? Well because of the effort and risk invested by the broker for your success.

This is quite similar in network marketing. the only difference is we don't hire employees or agents, we make business partners. You will also have the opportunity to be both agent and broker. You will be able to get a small percentage of the sale your team make because of the time, education and training invested into them.This is why continuous support to your team and from your sponsor is very important.

2. Leveraging & Compounding Principle

The idea of leverage is simple - ““I’d rather have 1% of the efforts of 100 people than 100 percent of my own efforts.”” – John Paul Getty. It is basically working as team to earn more money with less time and effort required. This is what allows people to earn full-time incomes on part-time hours and live the life of their dreams.

Compounding is another great principle that network marketing uses to multiply your earnings.

Let me ask you a question. Which would you prefer ?

One million dollars now OR one cent double everyday for just a month?

Let me show you how the math works out if you chose the cent a day for a month

Day 2 : $0.02

Day 4 : $0.16

Day 8 : $1.28

Day 14: $81.92

Day 21 : $10, 485

Day 28 : 1,342,177

Day 31 : Over 5 Million Dollars

Pretty amazing yeah!

So what does this mean for your network marketing business?

If you sponsor just 1 new person every month, for one year, and those people did the exact same. This is what it would look like :

Jan : 1

Feb : 2

Mar : 4

Apr : 8

May : 16

Jun : 32

...

Dec : 4096

You would have over 4000 people in your business. Of course reality is some people will do more, while others would do less. But this is a great way to think about network marketing and the opportunity it holds for everyone of you.

I hope this has helped you understand the concepts of network marketing.Become a Network Marketing Professional Today!

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