A quick Intro

Hi everyone

To kick things off here, lemme start some extremely basic notions about Network Marketing...

Q. How did network marketing start?

Network marketing started in the US about 50 years ago, and the first major modern network marketing business was formed in 1959. This company was created by business partners Rich DeVos and Jay VanAndel, originally with just one single product.

Their business vision was decades ahead of its time. They regarded conventional sales jobs as unfair - being paid only once for the work that they did even when the company continued to make a profit from their labours for many years afterwards. They believed that they should be paid relative to the benefit the company continued to get from their original work. The big problem with this was that no company would sanction their model of business, and the extra costs of paying the salesmen on an ongoing basis would have pushed the price of the products far too high to be saleable.

So DeVos and VanAndel broke away and formed their own company, returning a few years later with enough money to buy out their original employers and incorporate the vitamin business into their growing corporation. Their company is now a multi-billion dollar business operating in virtually every developed country in the world. Within a few short years, many more companies followed in their footsteps and now network marketing is responsible for a turnover of tens of billions of dollars in the US alone. Though the company they formed and many others have been the subject of various debates and court room dramas about how legal or ethical the way this business is done actually is, the original vision is awe inspiring... and has managed to survive quite unscathed for the past 40 years or so!

Q. What is the difference between network marketing and pyramid selling?

In a pyramid scheme, no goods or services are offered for sale to people outside of the pyramid organisation - money simply flows from the bottom to the top. This is one of the most important differences between a pyramid scheme and a legitimate network marketing opportunity. The consequence of this is that there is no net cash flow into the pyramid organisation, and therefore the people at the top make a quick fortune by taking money from people lower down in the organisation. If people at the top get rich, then it follows that people at the bottom must lose out, because the net cash contained within a static organisation stays constant. People find themselves trying to recruit new people to bring new cash into the organisation, just so that they can cancel their debts. This is the only way that new money can enter the pyramid. As soon as recruiting stops, the entire organisation folds and those who got in too late lose everything.

In network marketing, goods or services are sold by distributors to those outside of the organisation. This means that there is a net cash flow from outside to inside. This may sound like a small distinction, but in reality it is vital. It means that nobody in a well-run network marketing organisation need lose out. The incoming cash is split between those in the organisation based on retail sales. Even if no new distributors are introduced, everyone still makes money. The organisation could remain entirely static indefinitely because money is flowing in from outside.


Q. How much money can I make?

Many people have used this business model as a springboard for creating personal fortunes of hundreds of millions of dollars. On the other hand people have made nothing whatsoever. Actually, if you pay money to join (joining Prakriti Network is free btw) and then do absolutely nothing, you'll probably lose money! Some people complain about this, but of course you're entering a business, and you must expect to do some work in order to get paid! Go down to your local shopping centre and ask some of the merchants there how much money they lose for every day they fail to open their shop. Then ask them how much they paid to set up the shop in the first place. That should help to put things in perspective! Remember that this may be a simple, straightforward business model, but it is still a business, not a hobby. If you want to work it like a hobby then expect to lose money, as you would do on any hobby.

Q. Is this a 'get rich quick' scheme?

No! Network marketing is not by any means a get rich quick scheme. If you're looking for a way to make vast amounts of money in a very short time then you should probably consider crime or gambling, but I wouldn't advise either! :)

Network marketing requires substantial effort to get it to work. As answered above, it usually takes a dedicated effort over the course of several years before anyone starts earning incomes they can write home about.

Network marketing is not a 'get rich quick' scheme, but it is a 'get rich for sure... eventually' scheme, which is a lot better than what most people have right now!

Q. Can Network Marketing be done successfully part-time?

Absolutely it's very common in fact. You can start your Network Marketing business on a part-time basis, without giving up your current source of income, until your Network Marketing business is generating the income you require. The best part is that you can continue to operate indefinitely on a part-time basis. What would you do if you were financially independent and most of your time was free to do what you pleased? This is why so many people are flocking to Network Marketing. That's why we say that Network Marketing puts the freedom back in free enterprise!

Q. Will this business saturate?

If you remember this point about pyramid selling was that it was highly unstable and required new members being added all the time whereas network marketing is stable without growth. This is because goods are being sold outside the business structure to fund those inside the structure. Even if half the people in the world were to join, people would still buy their own products, and so goods of value would pass from outside the structure to inside. People would still make money!

Q. What kind of people join a Network Marketing Business?

All kinds! Be warned that it takes a fairly big shift in attitude to become really successful at it. Understand that this is a different way of doing business! I would also say here that Network Marketing may not be for everyone, and that they need to carefully evaluate everything before joining up.
People who are hard up for money should join because with dedication and hard work and very little investment they get a real chance for making a fortune.
People who are having jobs and are comfortable in life should join for a chance to earn passive/residual income, and maybe make that world tour they have always been dreaming about.
Finally people who are very rich usually join because they need other wealthy people around them in order to make their own businesses grow exponentially. They have a list of customers who know the goods or services they offer, trust them as leaders and have the money to pay for them ready in their downlines :)