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What exactly is Network Marketing?

Network Marketing is another form of direct marketing. It is primarily more worried about the organization of any sales network than using the sale itself.

The networker mostly starts to develop its own business before helping then other business partners to build their own, similar to a franchisor.

In difference to franchising where just one company opens new limbs, in Network Marketing each independent business owner can open new community businesses, but with low monetary investigations and without risk.

A networker undertakes the job to organize the community, to get paid for that sales qualified for bonus within that branch network.

Another feature of Network Marketing is to build up an transnational business through sponsoring international partners. Especially in Europe, Network Marketing represents one of the better examples how to utilize a single European market spot.

A report from Prof. Dr. Michael Zacharias, University Worms, in 1996 has shown, that the total revenue in Germany made in Network Marketing is still suprisingly low (approx. 300 million EUR r. a.), but it will end up being fast-paced.

In the Ukraine the market has just started (November. 2003), and the market in Russia will begin 2004 too. So in these countries we will have incredible and surpassing business growth in the next years. If you are from your Ukraine or Russia, or you know people from there, then you can directly reap the benefits of it. You can offer them an opportunity to build their own business.

This was just a good example, there are more thrilling success stories from other countries too, e. g. Sweden, Korea etc., and the opportunity is identical in most supported countries.

In Europe the Network marketing business is still in the infancy. Only 0. 7% of trading are currently made with Network Marketing.

So this distribution channel features a huge potential for growth in future worldwide.

The Three Pillars of Success in Multilevel marketing are:

1) Residual Revenue

2) Leverage (of time and Money)

3) Duplication

Network Marketing, 'MLM', and Multi Level Marketing are typical terms that refer to the same type of business design. While many close-minded people outside the industry (and other people who've tried it as well as failed), have biased or damaging wrong impressions, and despite the fact that it is used and abused simply by many crooks and con-artists, this business model has exceptional performance potential.

There are bad apples in most bunch, and this industry has more than it's share. But it can produce outstanding results once you learn how to find the best company. And to maximize your potential, there are a few simple concepts whose understanding is crucial to your success.

Unlike franchises or standard businesses, [http://ziki.com/en/candyce-snell+1315227/post/online-network-marketing-made-simple+14564862 List building] , MLM, and Multilevel Marketing are the only business models that benefit from all three of quite, yet misunderstood principles regarding:

Passive Residual Income - Leverage - and Geometric Development.

And the combination of all three of these elements is what gives the Multi level marketing model it's synergy and also exceptional performance potential. In fact one outstanding company I'm conscious of has actually built designed synergy into their business model.

Whether it's a business or conventional business, both require major investments of energy and money, and special skills should you hope to be truly successful. Even the relatively little percentage who achieve correct success usually take years simply to break even.