You Wanna Make Money Network Marketing

This is most likely the page that you have been waiting to read.

Guess what?

You can make money network marketing, and a whole lot of it.

Ten percent of the millionaires in the united that have become rich in the last 10 years have done it through network marketing.

There is quite a bit of money to be made by network marketers, so we'll take a closer look at exactly how.

So without further ado...

We will review the pros and cons of top compensation plans and then discuss some strategies to make money network marketing.

It’s just as important to know how you'll make money network marketing as it is to know your salary for your job.

First things first,

You gotta realize... In network marketing, the compensation philosophy is much DIFFERENT than that of the J.O.B. (Just. Over Broke) World.

In your 9 to 5 job, the philosophy for making money is to work hard to get a promotion so you can be permitted to be paid a little more.

With network marketing, there are no limits to how much you can be paid,

instead you have a compensation plan that sets a framework for how much you can earn.

With network marketing you can earn as much as you want within the rules,

while in a job you're only paid the least amount you are worth.

I don’t know about you,

but based on you just read...

I'd choose to make money network marketing over making money in a job any day.

So let’s take a look at how you make money network marketing: The Basics

Especially when it come making money through your network marketing opportunities compensation plan.

To put it simply,

you make the LEAST for your own efforts and the MOST for the efforts of others in your growing sales organization.

That is...

If you recruit 100 people into your organization personally you will make less than if you recruit 30 people into your organization personally but those 30 distributors under you

The two most important differences between Network Marketing and your J.O.B. (Just Over Broke)

1. Network marketers make money network marketing over and over again for the same transaction.

   An employee at a normal everyday job gets paid linearly for the time that that employee spends working. Wage workers get paid on a fixed time schedule that says, for this amount of time you'll be paid this amount of money.

   This is certainly not the case for making money network marketing. Network marketers are never paid by a fixed time wage; they get paid on every sales transaction that they make over and over again.

   That let say that again, a little differently.

   In network marketing, if you make a sale today you will still receive that same commission 10 years from now on that same one time sales transaction.

   YOu gotta love that!

   This concept, called residual income, is a powerful financial tool that we ALL have at our disposal through network marketing.

   I would much rather make a transaction once and then get paid for it over and over again then have to go to work for the next 20 years and have nothing to show for it in the end.

   There's more!

   The best part is...

   this is only one half of what makes network marketing such a powerfully lucrative home business venture.

2. Network marketers make money network marketing directly for the results of their sales organization.

   Wage earners get paid as a direct result of their work.

   For example, as a summer lifeguard I was paid $10/hr. If I worked 1 hour I got paid $10.

   This is not the case at all with network marketing. You make money network marketing predominately on the efforts of other peoples work.

   Unlike a traditional job where you only get paid on your efforts, in network marketing you make most of your money on the activity and results of your sales organization.

   This is fantastic!

   Not only do you get paid RESIDUALLY for the sales transaction that you make you also get paid residually from the sales transactions that your organization makes.

   Once your organization starts growing you start to get paid more and more for less and less work.

   What better situation could you think of?

   (besides winning the lottery!)

   This is exactly what got me excited to make money network marketing in the first place.

   Network Marketing truly is the most powerful financial growth tool known to man.

   I have said it before if you are going to start a home based business please make sure that it is a network marketing home based business.

Ok, let me slow down…

I get pretty excited when I talk about this making money through a network marketing home based business stuff.

How much you'll be paid is ultimately a function of your compensation plan, so that is the net topic of discussion here...

The Pros and Cons of the Compensation Plans

• The Binary Plan:

  Bi = 2,

  so the binary plan is based on the number two.

  Everything is done in twos.

  Your organization grows in two legs.

  For example, If you recruit two people into your business one person goes into one leg and the other goes into the other leg.

  Now for each of those two new recruits they only have two spots below them each, so if you recruit a third person he or she must go into on of the four spots below the two people than you enrolled.

  You get the picture...

  This process goes into infinity.

  You make money network marketing FAST in a binary pay structure, but because of this this plan tends to attract people with the get rich quick attitude.

  So things can fall apart just as fast as they grow in a binary plan.

  Not the best choice for long term residual income.

• The Unilevel Plan:

  In this plan an independent distributors make money network marketing by recruiting people into his or her downline just as in the binary plan, but the difference is the distributor is paid a set commission percentage for each level of his or her down line.

  For instance, if you recruited 10 people they would all be positioned on your first level and if your company states that you make 20% form them then that is how much you earn from them.

  You will be paid for multiple levels, so if the people that you recruit start to recruit others they'll be on your second level.

  If your organizations compensation plan mandates that you will be paid 10% for your second level then that is how much you will make off of these people.

  The process continues down a set number of levels determined by your network marketing company’s compensation plan.

  This unilevel plan is in contrast to the binary plan.

  You will not earn a great deal of money fast in an unilevel plan, but you will create a steady and growing stream of residual income.

  This is the better choice to make money network marketing of a long term network marketing business venture. (this plan is great choice when it incorporated fast pay bonus, but we will talk about this in a few minutes)

• Stair Step Breakaway Plan:

  You make money network marketing as a distributor in this type of a plan by proceeding up the stair step.

  (This plan is used most often by organization that distributes goods such as nutritional supplements or vitamins.)

  What does it mean to proceed up the stairsteps?

  Well,

  When you join one of these organizations you must buy a great deal of product at a discount and then retail it back to the public at full price.

  As you recruit new distributor into your organization under this plan you move up the staircase based on the amount of product sold. When a distributor moves up a stair step he or she is entitled to a greater discount when purchasing there product for retail wholesale and then obtains a high profit on retail Sales.

  The problem with this plan is that it is highly front end loaded.

  That means...

  You must purchase a great deal of products up front before you're really sure that you're going to be able to retail it.

  This can be a big risk for a new and inexperienced distributor.

  My advice is to stay away from these types of pay structures unless you are 100% confident in the product and your ability to make money network marketing with it.

• Forced Matrix Plans:

  The objective of a force matrix is to recruit a distributor to every open spot within your matrix.

  You can normally spot these types of compensation plans because they have numbers like 3 X 5.

  Which simply means...

  on each distributor first level there are three spots and hence on each distributors second level there would be 9 spots ( 3 X 3 = 9 ).

  The 5 in the above number refers to the number of levels in the forced matrix. So, the above example would have 5 levels.

  Thus the distributor gets paid 5 levels deep!

  The advantage of this plan is that every spot on every level must be filled before anyone can be placed on the next level.

  This means that if you get started in one of these programs under a high roller you may be able to start to make money network marketing by building your own down line from his or her “spill over” efforts.

  This is a very appealing idea because it means potentially an independent distributor can be successful without having to do anything.

  Although this is very appealing it's also a very dangerous...

  because it appeals to a person’s laziness.

  A forced matrix plan can attract a lot of people with a “something for nothing” philosophy. This is not exactly the business builder type of person that you to attract to your network marketing organization.

all four network marketing compensation plan pay structures have there pros and cons.

The truth is...

Things get a little more complicated in the real world because if and when you start to look around at different network marketing organizations you'll see that many of them don't fit exactly into any on of these four compensation plan types.

Most companies now use a hybrid plan that incorporate some of the best aspects of multiple compensation plan types, so look carefully.

If you want my opinion on what I think is the best compensation structure...

I think that unilevel compensation plans offer the best opportunity for long term and residual income.

The only problem is they do not pay distributors enough up front to keep them motivated long enough to work for the end goal.

This problem can and is easily fixed in most cased if the network marketing company has a quick pay program attached to its unilevel compensation structure. This allows representatives to put a great deal of money in their pockets up front.

This is exactly to type of multi level marketing company that I was searching for when looking for my final choice of organizations.

I suggest that you look to make money network marketing by looking for this same type of organization if you plan to grow a large residual income stream through your network marketing efforts.

Let's Move on the to next topic:

Characteristics of the Best Network Marketing Companies