Would you Generate More Income by Helping Others?

December 29, 2006 (Press Release) -- How would you generate more income, George Collins said you can do that by helping others to generate more income.

Whenever you mention the word network marketing, people always associate
those words with something negative. But yet if you look at the system overall
you will not find anything intrinsically bad about this system. Since the beginning
of time with network marketing when it was first introduced in the United States
around 1940, the strategy of most network marketing companies have been
consistent. What is the strategy? To distribute the products through local channels
where you can save on the distribution cost, and also providing some alternative
income for the people who would be an independent representative of the product.
There may be different variations in the strategy, but the basic principle in the
Implementation is still the same, distribution of product through the local people.

The process of network marketing is helping the manufacturers move their product
to the end consumer with the help of their representatives. By utilizing the local
representative to market the product of the company, the company is able to create
more income and save on the advertising costs and the distribution of the product.

Just think of the thousands of dollars that companies spend on promoting their
products through commercials, advertising, billboards, radio and other advertising
media. As the company pays more and more to promote their product, guess who
is going to pay for that added expense to defray the advertising and promotion
expenses. That’s right, the consumer, you. In some cases, about twenty percent
of the cost of the product you buy goes into advertising and promotions. The
distribution cost of the products would eat up to another thirty percent of the
product cost. I’m sure by now you realize why you pay so much for certain products
in the supermarket, that’s right, because of the advertising, promotion and distribution
costs that are factored into the product cost.

So the network marketing strategy works this way, all the money that goes into
promotions and advertising can now be passed on to the representative of the
company because they personally promote the company products to their friends,
family, acquaintances and other people they speak with, now the company will be
able to give the representative big commissions. In most cases, the network
marketing company will give the representatives a direct commission of up to
thirty percent of the sales generated by the local representative.

So when it comes to expanding the market reach of the product, the networking
strategy is for one person to get another person, to get another person, to get
another person and all will be eligible to earn commissions on the sales generated
by each person that the one prior has recruited. The good thing about that is that
it does not stop on the person that you have directly brought into the company.
You will also earn commissions on the new members that come into the company
through the sales of your new recruit. In most companies, the company will allow
you to earn commission up to eight levels down, or through eight recruits.

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