I know network marketing is a bad word to some of you (ok, it’s two words…but it’s my blog! If you don’t like it, you can get your own blog by clicking on the photo above or to the right), but it’s a very viable and potentially lucrative business model. used by such companies as Avon, Amway (of course), Pampered Chef, Scentsy, Beachbody, ViSalus, Nu Skin,  Vector Marketing, Xango, Legal Shield, etc. I’m sure you’ve heard of some of these businesses and maybe even bought their products. The people in these business aren’t evil…my Mom sold Avon, I was in Beachbody for a while, my son Danny was in Vector Marketing for a while (Cutco Knives!), I have friends in ViSalus, Nu Skin, Legal Shield and Xango. These are all good, honest people looking at an alternative means of being in business for themselves.
But isn’t network marketing or multi-level marketing (MLM) as it used to be called, an illegal pyramid scheme? No, it’s not illegal, it’s regulated as is any other industry. But what about being a pyramid? Don’t the people at the top of the pyramid make all of the money? Yes, this is true. But isn’t the corporate structure a pyramid? The CEO is at the top…he makes millions or tens of millions of dollars a year, while most of us are at the bottom making a little bit of money. In a corporation there is only one CEO, but in a network marketing company you are at the top of your own pyramid.
In network marketing, you’re not taking advantage of the people below you, but you help them grow because how much money you make is directly proportional to how much money those below you make.

Types of income:

There are several types of income: linear, passive and residual are chief among them.
We’re all familiar with linear income, that’s what most of us make. You work and you get paid, don’t work…don’t get paid. Passive and residual are a little different so I’ve copied some definitions from http://www.selfstartersweeklytips.com/archives/022305.htm
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- Residual Income
Recurring payments that you receive long after the initial sale is made, usually in specific amounts and at regular intervals.
- Passive Income
“Income derived from business investments in which the individual is not actively involved”
Passive basically means “inactive” or “submissive”, so Passive Income could be viewed as money that you make that doesn’t require an effort from you.
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From those definitions, it’s obvious that Residual Income is also considered Passive Income. Once you make the initial sale, your residual income can be considered passive. In most cases, you do not have to “work”, or make additional sales, in order to continue to reap the profits.
But network marketing provides leveraged residual income, you make money from your own efforts, which creates residual income, but you also receive passive, residual income from those below you.

“I would rather have one percent

of 100 people’s efforts than 100

percent of my own.”

— Andrew Carnegie

But isn’t network marketing a get rich scheme? Not if it’s presented properly. There is something in network marketing called the 1-3-5-7 year plan:
When setting expectations use the 1-3-5-7 formula when talking to the newest member.
  • It will take you one year to be functional and profitable. Rich in a year? NO! Functional and profitable YES! There’s an occasional exception to the rule.
  • It is going to take you three years part-time, 10 to 15 hours a week, committed, working hard to make a full-time income. Three years on average!
  • About five years to become a high-end income earner.
  • It will take you about seven years to become financially free creating a high 6 figure to 7 figure residual income.
There is also a book on network marketing called “The Four Year Career” which parallels the above timeline. The book, in a special SendOutCards edition, is available fromhttp://www.eagleonepublishing.com/ or www.sendoutcards.com/gifts.
So, I’m in network markeing for the long haul. If you want to join me in my journey you can post a comment to my blog or go to www.sendoutcards.com/144087 or /almostasecret.php?id=ricktompkins.