Network marketing is still a mystery to many new business seekers. They often mistake it for being a pyramid scheme or a scam. Network marketing companies have been around for decades and have been very successful at creating millionaires. So why is it that about 95 % of network marketers fails in their respective businesses? And what exactly is network marketing anyway?

Network marketing in its essence is a referral business. There are companies that develop a product. Let’s just say it is a health product. Instead of opening up a traditional shop were they have to pay overhead expenses such as rent, lease, employ staff and much more they decide to make it a network marketing business model. They have a warehouse and look for distributors to sell their product. This has many advantages such as being able to expand much quicker if the need arises. The affiliates called network marketers create their own business models by joining this “network” and “market” their product for others to buy. Once the network marketer sells a product he/she will earn retail profits.

But it doesn’t stop there. A network marketer has the potential to grow their own business by sponsoring/recruiting others who want their own business. He/she is then responsible to train those new recruits to the companies’ specifications and will often be done with the help of 3 way calls, online demonstrations or meetings.
This is often were the problems start. If a sponsor isn’t adapt at training others it can only mean potential disaster. On the other hand the new recruit will never get anywhere without getting into action themselves. Many new network marketing recruits make the mistake by thinking the work will have to be done by their sponsor. They expect to become rich because of the actions of their sponsor. This thinking is clearly wrong and will only mean that they quit within a short amount of time, due to wrong expectations.

As a network marketer we are all in business by ourselves but not by ourselves. That’s the theory of it anyway. Unfortunately in practice this is often the furthest thing from the truth. As some money hungry and egoistical network marketers seem to focus more on quantities of new recruits rather than quality the art of good mentoring has become a lost art. Due to this many new network marketers are lost and don’t find themselves supported by their mentors. Therefore they end up quitting.

In its essence network marketing is a fantastic business model. The problem is that in today’s world it gets abused by many people by offering get rich business models that are in reality pyramid schemes. The sad truth is that network marketing has therefore become an industry that is often looked down as being a pyramid scheme. Unless we can clear up the confusion about network marketing in the marketplace those that are involved in a network marketing business face a hard challenge at getting their message across to the masses.

To see an network marketing business model that has taken the online business world by storm and is real look at Perfect Wealth Formula.

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