How Network Marketing Works


The power of how Network Marketing works is through leveraging.  The more duplicatable your downline is, the more your chance for leverage increases.

“I'd rather have 1% of the effort of 100 men

than 100% of my own effort.” - by J. Paul Getty

This concept gives network marketing its power.  If you were to join a network marketing company, you would be considered an independent representative or distributor.

This would make you eligible to sell, market, or promote the network marketing companies products for commissions and bonuses.

What happens then, is you have the option of introducing others to the same opportunity.

How Network Marketing Works

If they say yes, you would be their sponsor. You would then help them do the same thing you do, which is sell, market, or promote the network marketing companies products.The company has trainings via:

  • Seminars
  • Conferences
  • Conventions
  • Audiovisual / Media
  • Books
  • Team Meetings, etc. 

. . . to help build you and your sponsors self-esteem and knowledge of products and the company.


How Network Marketing Works

The main attractive aspect of how to network marketing works is of course when you sell, market or promote the companies products the company pays you.

MLM Representative

However, when the person YOU SPONSORED sells, market or promote the company's products, not only does the company pay them, the company pays you a percentage of the sale also (not taking it directly out of their pay).

How a Network Marketing company pays

The company also pays bonuses according to promotions they may be running at the time.

The compensation (usually money) that the company pays you and your sponsors come from the profits from the sales products / services . . . NOT donations or contributions.

As far as the quote, “I'd rather have 1% of the effort of 100 men than 100% of my own effort.” by J. Paul Getty, it was to help you realize that the power of network marketing comes from leveraging.


How a Traditional Business Works

A traditional business, the boss, CEO or employer hires you to leverage their time and activities. They can't put 100% percent into every aspect of the business to make it run effectively (unless they are a Sole Proprietor).

Therefore they hire managers, supervisors and employees to do what needs to be done.

But they collect the lion's share of the revenue the business brings in and turns around and pays the employees who do the lion's share of the physical work (in most cases) minimum wage.


Why People Choose Network Marketing

In network marketing we would help bring someone in to the opportunity.  The people who get introduced to the opportunity have the chance to make more income that the person who introduced them to it.

If you sponsor someone, one of the only ways you'll see your income get bigger is if you help those who you sponsor be successful.

How Network Marketing works is you get paid what you're worth. It is a real business.

  • If you treated like a real business you'll get money like it's a business.
  • If you treated like a hobby come you'll get paid like it's a hobby (how much do hobbies make?).

Each network marketing company has a system. If you follow their system, it will increase your chances of success.  If you join and the don't use the tools that the company provides you will be at a disadvantage.


Think if you bought a franchise, you'll follow the system that the franchise sets in place in order to improve your chances for success.

You don't tell the franchise how YOU want to train your employees, what uniforms you want them to wear, what stove you'd rather buy or what signs you'd rather put up on your own.

I think we can both agree that if you do that, you will not be in business very long.


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MLM Guide > What is Network Marketing > How Network Marketing Works