Network Marketing is a business model in which companies distribute their products to the end user through a word-of-mouth, direct selling type of method. This eliminates the middle man - there are no advertising, wholesaling, or retailing costs involved whatsoever.

How Is ‘No Middle Men’ a Business Benefit?

When companies use “middle men” they spend money, and lots of it, on things that don’t enhance the product. If they don’t have these costs, they can spend more on research and development. This means that they can produce a higher quality, more unique offering.

The benefit that probably means the most to you? It’s the fact that some of that money that’s freed up by not paying for advertising, wholesalers, and retailers, can go in the pocket of the person who is promoting the product by telling his friends and family about it.

This person is referred to as an associate, independent agent, or distributor. He or she is a salesperson who has their own business or distributorship. They create income by building up a customer base that buys the products directly from the parent company, or by recruiting other entrepreneurs who in turn build their own customer base, or usually a combination of both. This increases the size of the overall organization.

Indepedent agents earn their money in at least two ways - through the efforts of their downlines, and by purchasing products from their company at wholesale prices then turning around and selling them for a profit. Commissions are paid based on what’s called a “compensation plan”, which determines how many levels of people will be receiving income from one person’s sales.

There is also a term called “multi-level marketing” or “MLM”. What’s the difference between MLM and network marketing?

Basically, nothing! The two terms network marketing and multi-level marketing refer to 2 different aspects of the same business.

First, network marketing. This term describes how the products are promoted, which is through a bunch of different people talking to each other, or networking.

Multi-level marketing is simply the means by which the people in the network are paid for their efforts. Commissions are paid to multiple levels of distributors, which creates leverage.

And leverage is….

When you are talking about leverage in this context you are talking about earning money from somebody else’s efforts.

This leverage concept is used by any traditional business with employees. The company pays the employee a salary, which hopefully isn’t is as much as he brings in. The owner of the company gets to keep the difference. He is leveraging his income by making profit from the efforts of his employee.

Network Marketing compensation plans are similar in the leverage aspect, but different in one major way: There are no employees, or the associated costs and hassles. They are leveraged off other independent associates instead. These people are also going to work harder, because they own their own business and are more motivated to succeed.

Hey, this sounds like a “Pyramid Scheme”!

Pyramid schemes are illegal in all states and most countries, whereas legitimate network marketing companies are allowed in all states and most countries. A pyramid scheme is recognized when distributors are paid primarily from money received from new recruits, or if they’re required to by more products then they can consume or sell.

There are illegal pyramid schemes that try to pass themselves off as legitimate network marketing businesses. If a company is legitimate, the distributor can only earn commission from sales of the company’s products or services, and not from recruiting sign-up fees alone.

Want to learn more about the industry of Network Marketing?

These resources, from a third-party perspective and not created by any specific company, are Brilliant Compensation by Tim Sales and The 45 Second Presentation That Will Change Your Life by Don Faila. I recommend both of these as not only informational, but as good resources to use in your prospecting efforts with skeptical people.

Unused Amenities - Cut back or close unused amenities. Close the pool during winter months when no one is using it. Reevaluate the hours of the fitness center. If people are truly not using the the services they will not mind if they are cut back. They will also appreciate the saving.

Memberships - If the Gym is nice enough you can sell memberships to the local community. at $40 a month 100 memberships would bring in an extra $4000 per month. Set it up as atomatic payments and many people will keep the membership long after they quit using it. You can also charge quest fees.

Advertising - Sell advertising to local business. They may be willing to pay for advertising in the newsletter or common areas. You can also allow Google to place ads on your website through adsense. You can find out more about adsense by going to Google and clicking on advertising programs.

Lower Maintenance Landscaping. Many developers only think of initial costs when landscaping. Many times there is little thought put into long term landscaping costs. Roses and Hydrogena take much more care than bulbs and ornamental grasses.

Collect Past Due Fees. Monies owed to a condo association can drag it down. Also you want to make sure fees are collected before they get so high the property goes into foreclosure. Lawyers many be willing to work on contingency.

Insurance Claims - If in the last five years your association had to get a loan (like those from SBA or FEMA) for repairs (Storm, Hurricane, Natural Disaster, Tornado or any accident) your regular condo attorney many not be enough. Contact an attorney who focuses on insurance claims. Many insurance companies deny underpay insurance claims. Many times the law states that the insurance company has to pay the legal fees. Moreover, many attorneys will handle insurance claims in a way that no funds will be out of pocket.

Rehabilitate instead of Replace. instead of copper pipe repair can be rehabilitate to better than new condition with epoxy pipe lining from CuraFlo. It is generally 30% cheaper than re piping and is much less obtrusive. RLS Solutions offers sewer lining and manholes to increase their life and save on costs.

Property Manager - Hire a property manager who is experienced in lowering costs. A property manger with experience will also know which contractors come in on budget and which ones have a history of not competing jobs on time.

Did you know that going green can make you live longer? Odd as it may seem it is a true statement. What is healthy for the earth is healthy for you also. Using naturally grown unprocessed foods, less driving, and so many other things will improve your health and increase your lifespan.

By eating healthy, organic foods you are not only helping your body by giving it fresh food, you are saving the earth from being contaminated by pesticides. Organic meats help by keeping the environment free of antibiotics and growth hormones. Plus you’re avoiding all those nasty things from going inside of you! By eating fresh, organic foods, you are avoiding all the processed foods that do a better job of clogging your arteries than they do of providing nutrition.

There are many things you can do to cut down on driving. Try to do everything in one trip if possible. You will save money, cut down on traffic, and reduce emissions into the environment. Driving is stressful and stress is not good for you so less driving means less stress. Ride with someone or use public transportation if you can. You can ride a bike or walk in some cases and it will also give you some healthy exercise.

Food scraps make great fertilizer when composted and a mess in the garbage can, so why throw it away when it can be used? You can add leaves and grass as well as coffee grounds and egg shells to your pile of compost. Fruit and vegetables that have spoiled or waste from peeling or chopping certain foods such as potatoes can also go into the pile. Don’t use meat or bones as it will take too long to break down and also attract flies and other nasty insects. Water it down when it needs it to keep it active and when it comes planting time you can add it to your garden soil and grow some nice healthy vegetables.

There is a lot you can do in your home to get more green. Open up the curtains and let the light in. Natural light is the best light to see by and you can avoid using energy by leaving your lights off more. Start using the new compact fluorescent light bulbs and stop wasting money and energy on the standard bulbs. These bulbs will last much longer and use less energy. You will love not having to change light bulbs all the time.

The little things add up, start recycling your aluminum cans and anything else you can. Not only will you help the earth to be greener, you will get a little cash too. Take your own bags to the store when you shop, you will have less trash and the store may even give you a few cents for doing it. Try to buy things with less plastic packaging if possible. You will help your air to be cleaner to breath by doing these things.

Once you get started, you’ll be amazed at how easy it is to live greener. You’ll be amazed at how much better you feel… both physically and mentally. Plus, you’ll feel better knowing you’re doing your part to have a healthier planet to live on. So go ahead… live greener and live longer. You’ll be happy you gave it a try.