by John P. Pratt
Jan. 28, 2003
© 2000 by John P. Pratt. All rights Reserved.
Network marketing is here to stay, and here's why.
Most who sign on to be distributors are convinced the product they are selling is excellent, and are looking to start a few other people to get a big enough bonus check to get the products free from themselves. Some are looking for a small home business which can provide a good supplemental income. Those who work consistently at it will often be amazed at the size of their bonus checks, because the power of exponential growth is working for them.
Consider the following example, taken from a good example marketing plan, which includes an excellent balance of breadth and depth, and also provides for distributors to retire on an excellent monthly income. This example involves both "customers" who only buy the product, which can often be at wholesale prices if they get it delivered automatically, as well as "distributors," who can also sponsor other distributors and earn an overriding bonus. In this example, after a three-month proving period, the distributor can become an "executive," meaning they can receive a bonus on everyone sponsored below them, who is not also an executive. Also in this example, an executive can be promoted to "director," "managing director," etc. and receive 5% overriding bonuses on up to 6 levels of executives in her downline.
Suppose every month the distributor finds two customers and one other distributor, each of whom buy $100 of the product monthly. That is a very feasible and reachable goal. Such a level of participation of each distributor is often required in order to participate in the bonus program. Suppose the distributor gets a 6% bonus on anyone directly sponsored and 7% on the second level. Suppose also that those percentages double upon qualification to become an executive. In this example, even a distributor who wants only to sponsor enough other people to get $100 of the product free can retire after the second month and receive a check for at least $100 from that point on. For those who don't quit, the bonuses grow from $58 in the first month to $14,318 in the ninth. After that, the bonuses get much bigger.