I've seen a huge increase in ads relating to Network Marketing Companies where your sponsor promises to build your downline. I am sure that some of them are on the shady side. That's the way it is. However, I have personally seen some very respectable companies which allow the technique.
First: a bit of history.
Traditional Network Marketing Companies have used the term "tap root" for years. It refers to your best downline leg. Often, your sponsor will help you build this leg. It is called a tap root since it is supposed to anchor your business; hopefully supplying the nutrients (cash) needed to break even. In the meantime, you take the knowledge you are gaining by watching the work that is being done on your tap root, and establish additional legs. The additional legs provide the excess cash you want in order to improve your lifestyle.
Next: the Internet. How has this tap root idea been applied?
Commonly, you sign up for a program. You are placed at the bottom of one of your sponsor's legs. Additional prospecting by your sponsor and/or their upline places people under you. In most cases you do not even know the people being placed under you. However, as these new people buy products from the company, you get a bonus cheque. "Great! I'm getting rich and all I'm doing is buying product and watching my upline add more people!"
Not so fast. Study the compensation plan. Do the calculations. You will probably find out that you max out at a bonus that is less than the cost of your required minimum purchase. You are at best getting a quality product at a discount. Big deal.
"Well then, how do I get rich?"
It's no different than the traditional model. You have to start new lines, or legs. Yes, YOU. If you have a good sponsor, they will help you here as well. They may use your ID in some of their ads in order to give you a quick start. Same as it has always been. If they get you excited and do a good job of teaching you, you will eventually go solo. Then your sponsor can cut you loose and move on to another prospect. They have created some residual income. That is the goal, right? Residual Income.
Now, one problem remains. How do you get those prospects that you require? Cold calling? Your warm market? Ads on Yahoo? Ads on Google or Overture? Ads in e-zines? That's another article!
I want to leave you with one other fact to ponder.
If you spend $6,000 promoting a web site and your opportunity, and you succeed in developing a basic $300 a month residual income, what is your return on investment (ROI )?
Well, that $300 a month is (300x12) $3,600 a year. That works out to a simple interest rate of 100x3600/6000 = 60%.
How many of you have an investment that returns 60% ?
Have a great future,
Richard
About The Author
Richard Killey is webmaster of http://www.comeandread.com and publisher of the popular humour e-zine, Jerry and Jenny Stories. He also helps people to begin making money on the net with little or nothing down. He can be reached at rwk@comeandread.com
You already registered as a member of company, lets call... Read More
Recruiting on the Internet in MLM is very popular! Yet,... Read More
10 to 20 years from now, most of us will... Read More
Phone skills are very important when you have your own... Read More
Here's the bottom line: you can't learn to swim sitting... Read More
"But, these people are telling me NO and I don't... Read More
In my last article entitled "How to build your MLM... Read More
The question all new Network Marketing Distributors ask when they... Read More
First, let me clarify what kind of Home Business I'm... Read More
Be your own boss! Set your own schedule. Retire Early!... Read More
Network Marketing is the most POWERFUL business model on the... Read More
NO ROMANCENo DownlineNo Downline, why bother?If you were romancing a... Read More
When someone asked me, 'John, what is the #1 reason... Read More
When most people think about Multi-Level Marketing, they envision slick-talking,... Read More
Have you got yourself into a home business opportunity but... Read More
Mention the word networking and you usually either get a... Read More
Network marketing is Simple, but doing the old way (i.e.... Read More
Put simply, Network Marketing is just a way for businesses... Read More
There are over 700 million computers in use in the... Read More
Have you ever wondered what the difference is? MLM operators... Read More
Recent discussions with fellow network marketers have centered on whether... Read More
Ever since the introduction of money making programs became available.... Read More
Failure.The word almost makes me want to throw up. Because... Read More
The MLM Business you are REALLY In.In network marketing, you... Read More
Let's face it! Most people who join a Network Marketing... Read More
Did I hear you say that these are not your... Read More
Network marketing success does come to many people and to... Read More
What you listen for in your conversations with others determines... Read More
Everyone who has thought about starting a Home Based business... Read More
If you've never had the experience you're very lucky....You just... Read More
There are three Rules of Network Marketing Leadership for MLM... Read More
If you haven't already read the NY Times Best selling... Read More
What does MLM Success REALLY sound like?Success basically in Network... Read More
One of the most important things to remember to have... Read More
The MLM Rule of Life.Here is a sad rule of... Read More
When I told a friend of mine about my information... Read More
Man.That project is finally finished! And what would it be... Read More
College is a great place where many people relax between... Read More
To most people, achieving financial freedom means no longer depending... Read More
Network Marketing, 'MLM', and Multi Level Marketing are all terms... Read More
I had an upline once tell me, who by the... Read More
Truth on mlmWhen you think about it the truth on... Read More
Working genealogy leads can be an effective method of building... Read More
Recent discussions with fellow network marketers have centered on whether... Read More
Would you like to earn money by starting your own... Read More
Here is the Challenge. You need to design an MLM... Read More
Take every program that doesn't include a powerline system and... Read More
Finding ways to get your home business noticed has always... Read More
Network marketing is hard. Don't kid yourself and truthfully don't... Read More
Network Marketing Success is very elusive, as most do not... Read More
Network Marketing Network Marketing |