Network marketing, also known as pyramid selling or multi-level marketing, is an increasingly popular marketing approach for selling goods or services via multiple levels of sales and recruiting. This is a great way to generate income quickly, build a large downline quickly while avoiding costly MLM upfront costs. But like any other business, you have to find a good opportunity or niche with a high return on investment (ROI) to make money in network marketing. You will learn a lot of useful information about network marketing through this article.

There are two basic models of network marketing: the direct sales home base business model and the multi-level or tier sales business model. In the direct sales home base business model, your primary goal is to recruit a large downline of direct sales reps, who will, in turn, promote your products. Your recruits sell the products, but you keep all the profits. With a multi-level or tier sales system, your recruits promote your products, but you keep 100% of the profits.

To be successful, network marketing requires three critical components. First, you must choose a market niche with high-profit potential. Second, you must provide great customer service and training so that your team knows how to pitch your products properly. Finally, you must develop trust with your team to become promoters and sponsors for your business. The best network marketing models include these three critical components.

Direct sales is not a replacement for lead generation and building your own list. A network marketing business model that focuses on only recruiting prospects will likely fail. Because of this, the best network marketing business opportunity for new reps is an affiliate marketing business model. Affiliate marketing involves building a list of lead generation leads through referral marketing and direct sales. This allows new areas to build a strong customer base and a strong residual income stream.

As mentioned earlier, it’s important to recruit others to help market your product. Recruiting others to help promote your business is known as multi-level or ‘network marketing.’ One common mistake in multi-level and multi-tier network marketing operations is the lack of focus on recruiting others. To make money, you have to make sure that your recruiting efforts are effective. You can do this through focus groups, cold calling, and lead capture pages.

The problem with most multi-level and multi-tier network marketing business opportunities is that the compensation plan is quite poor. Often, the company compensates very poorly, if at all. This is because the people who make the most money in this industry recruit salespeople and sell products. A bad compensation plan reduces your earning potential. However, some great, established companies out there provide excellent compensation plans, and you should consider them. It’s important to recruit other reps to help market your company and to increase your sales.

Go Now, and let’s talk about how to find a good, profitable business with a modest investment. It’s actually pretty easy to find one with a modest investment because you can do some simple research on Google or use some paid tools like Commission Junction or Clickbank. I recommend these two sites because they are well respected and offer good products and services at very reasonable commission rates. In addition to these sites, you should also consider joining some of the other reputable multi-level network marketing companies out there, like the more established Power sponsor Adrenys. They have been around a long time and continue to impress me with the type of commissions they pay their reps.

Finally, my last piece of advice for finding a good network marketing business is this: You should avoid the bad boy companies. I know it might sound like a no-brainer, but I’ve seen way too many reps quit a great opportunity because a shady company ran it. There are bad boy companies out there, but I have never seen a good one yet. So, when considering a network marketing business, stay away from the top-tier companies and consider one of the other more reputable companies.