To help you fully understand what Network Marketing is, I must first explain what it isn't. First, Network Marketing isn't a pyramid scheme. Pyramids are programs similar to chain letters where people just invest money based on the promise that other people will put in money that will filtrate back to them and somehow, they'll get rich. A pyramid is strictly a money game and has no basis in real commerce. Normally, there's no product involved at all, just money changing hands. Modern-day pyramids may have a product, but it's clearly there just to disguise the money game.

Network Marketing is a legitimate business model that is used by many large corporations.  Network Marketing is based on providing consumers with real, high quality products and services they need and want at a fair price. While people do make a lot of money with a network marketing home business, their financial benefit (significant residual income) is the result of their own dedicated efforts in building an organization of business partners in order to maximize distribution.

Pyramids are illegal and are based on taking advantage of people. For a person to actually make money in a pyramid scheme, someone else has to lose money. But in network marketing, each business owner can multiply his or her efforts, skills, and talents by helping others be successful through the process known as duplication. Network Marketing has proven itself as part of the new economy and a preferred way for many companies to do business around the world.

Network Marketing isn't about taking advantage of your friends and relatives. Only a few years ago, Network Marketing meant retailing to, and sponsoring people from, your "warm list" of prospects. Although sharing the products or services and the opportunity with people you know still plays a role in the business, today we use more sophisticated marketing techniques such as the internet, conference calling, webinars, and other long-distance techniques to extend our distribution network across the country and world.

Network Marketing isn't a get-rich-quick scheme. Of course some people do make large amounts of money very quickly. Many would say those people are lucky. But success in Network Marketing isn't based on luck. Success in Network Marketing is based on following some very basic yet dynamic principles which will be explained later. 

Now let's discuss what Network Marketing is. Network Marketing is a serious business for serious people. It's a proven system where the design, creation, and expense the corporate team has gone through becomes a proven road map for your own success. All you need to do is follow the simple, proven, and duplicateable system that all good Network Marketing companies provide.

The real key is this: Network Marketing is all about leverage. You can leverage your time and increase the number of hours of work effort on which you can be paid by sponsoring other people and earning income on their efforts. J. Paul Getty, who created one of the world's greatest fortunes, said "I would rather make 1 percent on the efforts of 100 people than 100 percent on my own efforts." This very basic concept is the cornerstone of Network Marketing.

For example, most successful people building a Network Marketing business do so in an organized manner. They work a few dedicated hours each week, with each hour of effort serving as a building block for their long-term business growth. Then they sponsor other business partners and teach those people how to distribute the company's products and sponsor others who continue to duplicate the process.

By helping the people you personally sponsor to sponsor others, you duplicate yourself. As this process continues, you create compound growth that can lead to hundreds or even thousands of people coming into your business team over time. You leverage your time by helping others be successful and earn an ever growing residual income from all of their efforts. Additionally, an important point to note is that people can, and often times do, make more money than the person that introduced them to the business, thus clearly differentiating Network Marketing from the compensation plan of a pyramid scheme. 

With a Network Marketing home business, there are no large capital requirements, no geographical limitations, and no special education or skills needed. It is a low-overhead, home based business that can actually offer many of the tax advantages associated with owning your own traditional type business. Network Marketing is a people-to-people business that will significantly expand your circle of friends. It's a business that enables you to travel and have fun as well as enjoy the lifestyle that a significant, life-long, residual income and resulting time freedom can provide.

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