Building Cody’s Future (Why I Chose Network Marketing … aka MLM)

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Building Cody's Future | Fairy Busy Mommy

Who wouldn’t want to stay home with this cutie?

As a “Stay At Home Mom”, I have found myself in need of bringing in additional income by working from my living room while taking care of Cody. Working from home is not something that is new to me… in fact, I have been doing it on and off since July of 2001, (nearly 9 years for the mathematically impaired) and I’d like to talk a little about ONE of the ways in which I do this.

Before you run away, please note that this post is not about me trying to get you to join my company,
though I certainly won’t turn you away if you want to! This post is simply me writing about one of the things I am doing to help build a future for my son.

There are many different ways that a person can earn an income from home, and one of those ways is by Network Marketing. And don’t freak out. I’m not talking about “Pyramids”. I’m not THAT stupid! GEESH!

Anyways… as I was saying, Network Marketing is actually a very viable way to earn an income from home. It is not a “get rich quick” type of business, and there are MANY reputable companies out there that are not scams. (I’m not going to list ANY names, good or bad! This is not an ad!) Some of these companies are new, and others have been around for 25+ years. I actively participate in new and older companies and it’s really quite enjoyable. Because I take the time to RESEARCH a company before I join it, I have never been burned. I’m not saying it CAN’T happen, I am merely saying that it HASN’T happened with any of the companies I’m involved with.

Many people hear the words “Network Marketing” or “MLM” and run for the hills. The MAIN reason for this is because people don’t know what it is! They haven’t taken the time to look it up, or have been mis-informed in the past… usually by someone who didn’t do their research and got burned… and they immediately think “Pyramid Scheme” and close their ears. According to Wikipedia… “A pyramid scheme is a non-sustainable business model that involves the exchange of money primarily for enrolling other people into the scheme, often without any product or service being delivered.”

A Network Marketing Company is, typically, a company that sells a product, or line of products. It could be vitamins, candles, diet pills, make-up, cleaning supplies, books, clothing, jewelry, etc. In most cases, the Company itself does not advertise its products and instead relies on “word of mouth” referrals (networking) to gather customers and then uses the money they would have spent on advertising (marketing) to reward the customer instead.  In most cases, the Company requires you to pay either a one time “Start Up” fee, or an annual membership fee. (Kind of like Sam’s or Costco does) Members of the company usually get a discount on their products, but are required to make a “monthly commitment” in order to remain an “Active Member”. The commitment is usually a monthly purchase requirement. It could be from a select group of products or a certain dollar amount worth of products. Upon making your “monthly commitment” you are now an “Active Member” of the Company and if you have an “Active Downline” you are eligible to receive commissions on any purchases or sales made within your “downline.”

A network of customers market the products, services or company itself, for the company in exchange for discounts and/or referral rewards or commissions!

How do you get a “downline”? Easy! You refer customers!

Here’s an example:

Company X sells music CD’s  but you have to be a club member to buy them. You sign up, get a Membership ID# and buy some music. You tell your friend, Joe, about it. Joe likes it, and you sign him up using your Membership ID#. Joe gets his own Membership ID# which is now linked to yours. Joe buys some music. Since YOU introduced Joe to Company X, Company X is happy and says “Thanks for the new customer!!” They reward you by giving you 5% of the profit made from Joe’s music purchase… EVERY TIME HE PURCHASES. Joe likes what he bought and tells Sue, Sue signs up under Joe, and get’s her own ID# which is linked to Joe. Since Joe is linked to you, this links Sue to you as well. You now have a downline.

You

  • Joe
    • Sue

If you also sign up Sharon and Tina your downline would look like this.

You

  • Joe
    • Sue
  • Sharon
  • Tina

Now let’s say Tina signs up a whole bunch of people, and some of the people she signs up also sign up a bunch of people

You

  • Joe
    • Sue
  • Sharon
  • Tina
    • Amy
      • Kim
      • Aaron
        • Mike
        • Justin
          • Stephanie
    • Tom
      • Mark
      • Becky

Now you have 13 people in your downline (5 levels deep, 3 levels wide), and you are earning a percentage of each purchase they make simply by having recommended the store to 3 people. (The numbers & percentages I am using are examples only and vary from company to company)

You

  • Joe(5%)

    • Sue (4%)
  • Sharon (5%)
  • Tina (5%)
    • Amy (4%)
      • Kim (3%)
      • Aaron (3%)
        • Mike (2%)
        • Justin (2%)
          • Stephanie (1%)
    • Tom (4%)
      • Mark (3%)
      • Becky (3%)

Assuming you continue to make your monthly purchase commitment you will continue to receive commissions on your active (purchasing) downline members. Most companies give you a larger percentage for purchase made by customers YOU personally refer. The farther down the line the lesser the percentage tends to get. In this way, there is no “Top Dog”.  You are rewarded for the amount of effort YOU put into your business. If YOU only enroll Joe, Sharon & Tina, you are only earning 5% off of those 3 people. The percentage you earn from the rest of your downline is 4% or less. But if Justin, who is towards the “bottom” of your downline, personally signs up 7 people, he’s earning 5% off of those 7 people and could effectively be earning more money than you, even though you are farther up the line. Make sense? You get paid for your efforts. NO effort = little to NO pay. But a little bit of effort creates a residual income that CAN go a LONG way!!

So now you have a basic idea of what Network Marketing is. The key is to start with a company that provides a product or service that you use regularly. This way, if you have trouble finding a downline at first, you aren’t “wasting” your money purchasing items you don’t want or need. I chose to start with a company that provides everyday household items, like shampoo, toothpaste, dish soap, shower gel, etc.. stuff I was already buying at the grocery store. All I did was “switch stores” and now I get better products (at better prices) that I NEEDED to buy anyways! And the company rewards me when I introduce new customers to the store! How cool is that?

If you want to go into the specifics of the companies I work with… EMAIL ME:  Once Upon A Dollar AT Gmail DOT com

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