Energy Deregulation Network Marketing MLM Home Business That Replaces Your 9 To 5

Posted on October 22, 2008
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Network marketing is a business model utilized by some companies to sell products or services. This type of business model relies on independent business owners to sell products or services as well as sign up other associates or consultants. Companies that typically employ network marketing do not spend money on traditional advertising.

A lot of self made millionaires got their start in network marketing and this is recommended by top business experts like Rich Dad Robert Kiyosaki and Donald Trupm.

There are a few network marketing companies you may have heard of. Below are some details on a couple companies you may have heard of

Amway was founded in 1959 and is based out of Michigan. Amway is a very familiar company and you probably have heard about this network marketing company. They distribute primarily household items, but have expanded their product line in recent years. In the United States, Amway is now operating under the name of Quixtar. Many people have tried to claim Amway is an illegal pyramid scheme. The FTC has ruled Amway is a legitimate business, but has imposed some rules and has fined Amway when the rules were violated.

Excel Communications is a good example of multi level marketing. Excel entered the telecommunications service industry when it was deregulated and had a very successful run before reduced profitabilty in the telecommunications industry took its toll. Many aspiring entrepreneurs made a lot of money by building huge networks of people using Excel long distance. They only got paid a few cents per customer in their group, but that led to big profits for those who got in early and ultimately built networks of hundreds of thousands of customers. Many people considered the Excel compensation plan to be the best the industry had offer at the time.

When you are interested in making money in network marketing, it is extremely important to work with a company that has a profitable compensation plan. It is also important to have a product that sells and that you understand and believe in. Ambit Energy is offering a fantastic multi level network marketing opportunity and I will use them as an example of how multi level marketing works.

A network marketing MLM home business starts with becoming a consultant, sales rep, associate, or whatever a particular company calls it. There will usually be a sign up fee of some sort. Often, you get a business start up kit with that fee.

As a consultant, your first job is to gather customers to make money for the company you are working with. The thing that you probably don’t get paid for at work is the work that other people do. In a way, a plant manager gets paid for what the people that work for him do, but there is no direct relationship. In a good network marketing program, you get paid for the work that other people do. In Ambit, you get paid for the customers that are gathered by consultants for 6 layers below you. Exponential growth is the mathematic term used to describe this and that is a very good thing when you get paid for every person that enters your organization.

You will usually get paid bonuses when new business owners enter your business. In a true network marketing business, these bonuses are not paid until a certain number of sales is made. This is just like getting a bonus at your normal job for doing something good.

A pyramid scheme as defined by the US Securities and Exchange Commission is a program where participants attempt to make money just by bringing new members into the program. They are illegal and should be avoided unless you really like living behind bars. There are many sites like Pyramid Scheme Alerts that try to educate consumers before they get involved in something unethical or illegal.

One simple test you can do without checking any websites is to look at how money is generated. If the money is generated by sign up fees and not customer purchases, there may be some unethical or illegal elements to the program.

If you choose to try a multi level network marketing opportunity you can be on your way to financial freedom. Just make sure you do your homework before starting.

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