2 Popular Misconceptions About Network Marketing

To fully understand what network marketing is, we must first define what network marketing really is. Network marketing, also known as multi-level marketing (MLM), is a marketing strategy that involves selling and building a network of people who will have the same opportunities as everyone else in the network. In network marketing, the income you will generate depends on the total volume of products sold by your group.

Here are the 2 popular misconceptions about network marketing:

FALSE CONCEPT 1: People who joined first will earn more

The fact is that the people who joined first will definitely have more profit potential from the business, but the amount of money they will make is not relevant to whether they joined first or not. In the best MLM company like Amway, you could never earn more than your downlines unless you are more productive than your downlines.

A good network marketing company offers excellent compensation not based on the number of your downlines but on the amount of volume you and your team produced. There is the so-called differential bonus commission that will serve as a margin on the amount of money you will earn. Differential Bonus Commission is a commission you’ll earn based on your total group sales volume minus the total sales of your particular immediate downline’s group. This means that if your total group volume is $100,000 and a particular immediate downline’s total group volume is also $100,000, it means you won’t earn anything because $100,000 – $100,000 = 0. Keep in mind that this is just a concept and not the actual value. compensation plan. Network marketing companies have different marketing plans.

FALSE CONCEPT #2: The people who joined first will use the people

The real beauty of network marketing is that you need to help people earn an income so you can earn more income. The people on your team will only produce more sales volume for you, but there is no way you can win unless you find other people who create additional sales volume. Your team will never survive if you don’t help these people, so there’s no way the people who joined first can use it. In fact, the people who joined first will be used by their downlines because they will become the source of information, the source of help, etc.