YRAMID

CHEMES

Saving the network marketing industry bydefining the gray

byKevin Thompsonkevin@theadvocategroup.net

NTRODUCTION

In these trying economic times, responsible network marketing companies are positionedto offer viable opportunities for people that desperately need them. They combinepassion for products with individual ambition to create a powerful testimony to theunyielding principles of free enterprise. With a fair compensation plan, an excitingproduct, and proper education, independent agents across the globe (also referred to asdistributors) can leverage the power of networking to dramatically change their financialcircumstances. Network marketing companies are responsible for providing itsdistributors with marketable products and compensation plans that rewards andmotivates the sales force. Ideally, the rewards are designed to be commensurate with the work performed.

With a good product and a fair compensation plan,

the average person is given an opportunity to completely redefinetheir finances while operating a home based business.

Distributors earn income primarily in two ways. First, they can purchase products atwholesale and mark them up for retail sales, thus earning an immediate profit.Secondly, they can form a “downline” by recruiting additional distributors and earncommissions on their sales to customers and purchases for personal use. Sincedistributors are paid commissions on sales made at “multiple levels” down a fixed salesorganization, network marketing is commonly referred to as multilevel marketing.In his book titled The New Professionals, authors Charles King and James Robinsonhighlight the historical roots of direct sales. The roots of direct selling can be tracedback to the colonial peddlers selling various goods door to door.