The terms, MLM and network marketing are different ways of saying the same thing. MLM is the older term. It stands for multi-level marketing, which emphasizes the general payment structure. Network marketing tends to emphasize the fact that you are working as a team. You network with them.

It is interesting how many people mistakenly believe that these types of companies are not legal, simply because their payment structure is similar to pyramid schemes. The big difference is network marketing companies sell actual products and services, so that makes them absolutely legal.

They are totally different entities. To be against the idea of network marketing because of the existence of pyramid schemes does not make sense. It would be like refusing to ever get in a car, because cars are so often used to rob banks and commit other crimes. (That would be silly.)

So, where does the potential to create fiscal freedom in network marketing come from? It has to do with the fact that you work with a team of of people who join your organization under you. You will earn income, several levels beneath you, whenever anyone on your team, sells a product or buys a product. Similarly, when you buy or sell something, people above you are benefited as well.

Success is achieved when you refer other people to join under you, and then you teach them how to refer others, which they do. And, they teach their referrals how to refer others, etc. This process is known as duplication and it is very powerful if you can keep it going.

If the chain continues, it is possible to accumulate wealth. If you can not get that duplication process going, you may still make some money, but financial freedom is not very likely.

For instance, let’s say the minimum purchase you must commit to is $50 a month. On your direct referrals, you make more money than on the levels below them, who you did not recruit. For instance, you make $10 for every $50 purchase from your first level and $5 from your second level, and then a dollar less each level down, so that on level 6 you make $1 per $50 sale.

If your organization, that is to say, your downline, has a lot of duplication, then it could be possible to eventually make considerable money just from your sixth level alone. That is the power of duplication. However, what would happen if you are good at recruiting, but you can’t teach anyone else how to duplicate? Well, you could still make some decent money, from the $10 per month residual income on the first level. It won’t be anywhere near what it could be with duplication, though.

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In order to raise your income, you must understand how to market using paid or free techniques. That’s no different than whatever business your associated with. Whenever you would like to earn cash, you have to find out how to market! Many businesses are contained in your search engine and every time someone uses it, you get paid commissions from these businesses.

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