A lot of companies felt that this method of marketing was much more effective than the traditional ways of advertising through mediums like magazines, billboards and television.
The cost structure to these companies would also be different because they would now be rewarding distributors for the sales they actually made instead of paying large advertising fees to advertising companies, where the cost of advertising did not always reflect the amount of revenue generated. As MLM companies only pay distributors on a per sale basis, it was and still is a win-win situation for both parties.
The Power Of Residual Income
One of the biggest draws to the Network Marketing (MLM) industry is that people can generate residual income over the long term. The ability to generate this type of income is the main reason why so many people are so attracted to this business model. As the sales structure is in the shape of a pyramid, a sponsor will get a small cut of everything their downline produces, hence why residual income is possible.
Now the concept of residual income only works if everyone stays in the same organization and does not move to another company. Of course some people are bound to move at some point and this is not a huge problem as long as most people remain where they are, and each distributor continues to recruit new reps and sales are continually generated.
The Internet Takes Over
Fast forward to today. The Internet is growing by leaps and bounds. It is pulling the world closer and there are more and more social media networking sites that are popping up everyday single day. So much so that most people can barely keep up with the pace.
MLM goes online and naturally people start to move their MLM business onto the Internet. Now that this is possible, a lot of people don't even have to leave their homes to grow their businesses. All of a sudden, it is possible to createa business on the Internet from the comfort of your own home. And that is what is happening everyday single day. Hundreds if not thousands of new MLM companies are created online every single year. With this comes new businesses and new opportunities for people in Network Marketing to take advantage of.
The Destruction Of MLM
There are prelaunches happening all over the place. Network Marketers start to jump ship because of the promise of getting in at the ground level with these new MLM companies.
Now think about what happens when a leader in your organization moves to another company. They don't just leave quietly. They take their entire team that they've worked so hard to build along with them.
Now where does this leave you?
That's right. You are left with a check at the end of the month that's cut in half!
Don't believe me?
I didn't believe it too, until I read the GPT Report that is causing a huge stir in the MLM industry. Something that you will need to educate yourself on if you want to stay in profit in this business.
You can check out the GPT Report here http://gpt.mlmshogunstrategy.com
Aaron Chen is an Online Marketing Specialist & Coach in the Network Marketing industry. He helps Network Marketers to explode whatever MLM business they are in through the power of attraction marketing techniques.
For more free information visit his blog at http://www.aaronchenonline.com
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