Suppose you earn a $100 commission for selling a product and it takes you one hour of work to make a sale. If you put in a full 40 hour work week and you make 40 sales and pocket $4,000.
Suppose you have spent some time recruiting a few people to join your team who also earn $100 per sale and you earn a nice $10 check for every sale THEY make.
Over time you have built a team of 100 people. They each make 40 sales per week – independent of your time and effort.
- YOU = 40 hours, 40 sales, $4,000
- TEAM = 4000 hours, 4,000 sales @ $10 each = you get $40,000
See the magic? You get paid on the time and effort of other people. This is leveraged income versus linear income.
So perhaps a good way to answer the question: “What is network marketing?” would be quote J. Paul Getty, one of the richest men in his time:
I’d rather have one percent of the efforts of 100 people than 100 percent of my own efforts.