Many people come to the Internet looking for a way to generate an extra income. Most have no idea what it is they're looking for, exactly, and spend a great deal of time bouncing from one thing to another. Let's face it, the Internet provides an endless supply of opportunities, the good, the bad, and the scam.
Basically, there are really only two types of income opportunities available to those who do not already have their own business to bring to the Internet, or have their own product to sell. There are network marketing opportunities and there are affiliate programs. Both require the promotion of a product, or service, either tangible, or digital, that someone else has created.
First, let's talk a little about network marketing opportunities, commonly referred to as MLM, or multi level marketing. Network marketing opportunities generally involve the promotion of a company that offers a tangible product, or service. These companies offer commissions based on sales, either by setting up distributors, or a referral system.
With a distributor system, representatives are usually required to maintain an inventory of products to resell to others. The distributor usually pays a wholesale price for the products they sell, and they keep the difference between the price they bought it for, and the price they sell it to someone else for. Most companies that operate in this fashion also give bonuses to distributors who recruit new distributors.
Typically, it is in a distributor's best interest to recruit other distributors, as a way to generate residual income. This is because the majority of companies that use this system of marketing, allow distributors to earn a percentage of the sales generated by distributors they have recruited. And to keep track of all a distributor's recruitments, a matrix is put into place. So, the distributor, in this senario, has two ways to genreate income: 1) by selling products to others 2) by recruiting other distributors.
Some examples of network marketing companies that use the distributor system are:
* Amway/ Quixtar * Herbal Life * Life Force International * Tahitian Noni
Note: A matrix should not be confused with a pyramid. To learn more about the differences between MLM opportunities and pyramid schemes Click Here.
Referral marketing (word of mouth), is a little different. With referral marketing, distributors are not part of the equation. The retail sales of products are not involved. Referral marketing is just as it sounds, participants earn commissions by referring new customers to the company. That is to say, when a new customers buys a product, the person who referred that customer to the company earns a commission on that sale.
Some referral marketing companies will also provide the ability to earn a commission if their referral refers a new customer as well. In this case, as in the distributor system, a matrix is put into place to keep track of primary and secondary referrals.
Example: In my network marketing business, I earn commissions for referring new customers. (Primary referral) I also earn a commission when one of my referrals refers a new customer. (Secondary referral) All of my commissions are based on the sales of products purchased by referrals. There are no retail sales involved, because once I refer a new customer, they deal directly with the company. They order directly from the company, they pay the company directly, and the company ships directly to the customer. All I do is refer the customer and help them set up an account. I earn a residual income from that referral for as long as they remain a customer. The matrix that is put into place by my company allows me to earn commissions on referrals seven levels deep. To use myself as an example, every time I go shopping at my company store, seven families who joined before me, earn a commission on what I buy.
Regardless of what type of network marketing business you choose, both require a source for obtaining prospective customers and/or opportunity seekers, typically referred to as leads.
I am totally tired of all the MLM programs, downline clubs, money-for-nothing deals… all the crapola, invading your gray matter! I see new junk popping up all the time. Bogus programs, with big promises and zero return, proliferate. That doesn’t mean they work, it just means that they are out there, and even the experienced marketer may fall prey, sometimes.
There are many legitimate business opportunities, online, but for every credible one, there are at least 100 more, less than credible ones. You have to know the right questions to ask, what to look out for, and how to make it work.
Things to look for:
A product or service that is in demand
A business that has potential for future growth
A company with a solid business reputation (preferrably one that has be in operation for a few years)
A business that fits into your lifestyle
A compensation plan that is not dependent upon membership fees as its commission base
One that requires a low start up cost
Training and support to provide you with the best opportunity to earn
A product or service that you can be proud to represent
A business that does not promise to build itself
What to avoid:
Complicated matrices
Programs that pay someone else on your first sale (one up programs)
Businesses that require a large investment and/or expensive monthly maintenance costs
Businesses that require the purchase of non-commissionable, additional training materials, seminars, or expensive lead packages
Anything that promises huge payouts for little effort (something for nothing)
Any program that requires you to pay a fee [upgrade] in order to have the ability to collect commissions for your referrals.
Anything that has to do with Dave Turner (self proclaimed home business expert)
A home based business is just that; a business, run from your home. It is not a scheme. There is no get rich quick about it. It takes desire, drive, knowledge, support, and effort to make it work.
You can find what you're looking for, and get it too! Just ask a lot of questions and pay attention. When you find what's right for you, stick with it. Jumping from opportunity to opportunity will get you absolutely nowhere. Maintain your focus, and get the job done. Don't let the latest, greatest thing-a-ma-bob distract you from your goals.
