OK; They Built My Downline. Now What?

I've seen a huge increase in ads relating to Network Marketing Companies where your sponsor promises to build your downline. I am sure that some of them are on the shady side. That's the way it is. However, I have personally seen some very respectable companies which allow the technique.

First: a bit of history.

Traditional Network Marketing Companies have used the term "tap root" for years. It refers to your best downline leg. Often, your sponsor will help you build this leg. It is called a tap root since it is supposed to anchor your business; hopefully supplying the nutrients (cash) needed to break even. In the meantime, you take the knowledge you are gaining by watching the work that is being done on your tap root, and establish additional legs. The additional legs provide the excess cash you want in order to improve your lifestyle.

Next: the Internet. How has this tap root idea been applied?

Commonly, you sign up for a program. You are placed at the bottom of one of your sponsor's legs. Additional prospecting by your sponsor and/or their upline places people under you. In most cases you do not even know the people being placed under you. However, as these new people buy products from the company, you get a bonus cheque. "Great! I'm getting rich and all I'm doing is buying product and watching my upline add more people!"

Not so fast. Study the compensation plan. Do the calculations. You will probably find out that you max out at a bonus that is less than the cost of your required minimum purchase. You are at best getting a quality product at a discount. Big deal.

"Well then, how do I get rich?"

It's no different than the traditional model. You have to start new lines, or legs. Yes, YOU. If you have a good sponsor, they will help you here as well. They may use your ID in some of their ads in order to give you a quick start. Same as it has always been. If they get you excited and do a good job of teaching you, you will eventually go solo. Then your sponsor can cut you loose and move on to another prospect. They have created some residual income. That is the goal, right? Residual Income.

Now, one problem remains. How do you get those prospects that you require? Cold calling? Your warm market? Ads on Yahoo? Ads on Google or Overture? Ads in e-zines? That's another article!

I want to leave you with one other fact to ponder.

If you spend $6,000 promoting a web site and your opportunity, and you succeed in developing a basic $300 a month residual income, what is your return on investment (ROI )?

Well, that $300 a month is (300x12) $3,600 a year. That works out to a simple interest rate of 100x3600/6000 = 60%.

How many of you have an investment that returns 60% ?

Have a great future,

Richard

About The Author

Richard Killey is webmaster of http://www.comeandread.com and publisher of the popular humour e-zine, Jerry and Jenny Stories. He also helps people to begin making money on the net with little or nothing down. He can be reached at rwk@comeandread.com

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Amy Vollmar, 43, from Bowling Green, Ohio, a worker for Chrysler for the past 24 years, listens during a Chrysler rally at the Jeep plant in Toledo, Ohio, Wednesday, Dec. 3, 2008.    (AP Photo/Madalyn Ruggiero)AP - The United Auto Workers said Wednesday it is willing to change its contracts with U.S. automakers and accept delayed payments of billions of dollars to a union-run health care trust to do its part to help the struggling companies secure $34 billion in government loans.



A bomb disposal squad officer, center, takes a suspicious box to the police station after diffusing a bomb at Chhatrapati Shivaji train station in Mumbai, India, Wednesday, Dec. 3, 2008. Police on Wednesday discovered leftover explosives hidden in a bag in Mumbai's main train station, a stunning new example of botched security after the deadly rampage that left the government open to accusations it missed warnings and bungled its response. (AP Photo)AP - Police searching a mound of baggage abandoned amid the carnage of the attack on Mumbai's main train station found two bombs Wednesday — nearly a week after they were left there by gunmen — in a stunning new example of the botched security that has become a major issue in India since the three-day siege.



In this Dec. 1, 2008 file photo, Alaska Gov. Sarah Palin, center, waves to a crowd during a campaign stop for Sen. Saxby Chambliss, R-Ga,  in Savannah, Ga.  Palin has added to her financial disclosure forms two free trips that she took nearly two years ago but failed to report.   (AP Photo/Stephen Morton, File)AP - Gov. Sarah Palin has added to her financial disclosure forms two free trips that she took nearly two years ago but failed to report. Palin, who was Republican presidential candidate John McCain's running mate, made the disclosures last month, but after Election Day when she and McCain lost to Barack Obama and Joe Biden. The trips were first revealed in a story by The Associated Press in October.



Rev. Edwin Bacon, of All Saints Episcopal Church, delivers a sermon in support of same sex marriages Sunday, Nov. 9, 2008, in Pasadena, Calif. Demonstrations on Saturday to protest passage of an anti-gay marriage ballot initiative were the largest of several marches that followed Tuesday's passage of Proposition 8, a constitutional amendment banning same-sex marriages and overturning the state Supreme Court decision that legalized such unions in May. (AP Photo/Gus Ruelas)AP - Theological conservatives upset by liberal views of U.S. Episcopalians and Canadian Anglicans formed a rival North American province Wednesday, in a long-developing rift over the Bible that erupted when Episcopalians consecrated the first openly gay bishop.



Pirates ride alongside the luxury American cruise ship M/S Nautica, in this photo take from the Nautica, during a hijack attempt on the vessel, off the coast of Yemen in the Gulf of Aden, Sunday, Nov. 30, 2008.  The M/S Nautica, carrying 656 international passengers and 399 crew members, was sailing through the Gulf of Aden on Sunday when it encountered six bandits in two speedboats.  The pirates fired at the passenger liner but the larger ship was faster than the pirates' vessels, and escaped being boarded.(AP Photo)AP - Ordered to get inside and stay down, Oregon tourist Clyde Thornburg heard the pirates' rifle shots hit the side of the luxury cruise liner — "Pop! Pop! Pop!" — then felt the ship speed up to escape.



This undated photo provided by the Tracy Police Department shows Caren Ramirez. Police were seeking Ramirez on suspicion of participating in alleged abuse against her 17 year-old nephew who showed up Monday, Dec. 1, 2008 at a northern California gym with a chain locked to his ankle. (AP Photo/Tracy Police Department)AP - The aunt and one-time guardian of an emaciated and shackled 17-year-old has been arrested, as police tried to determine how she knew the couple accused of holding the teen against his will for nearly a year. Caren Ramirez was arrested Tuesday in Berkeley, a day after the boy walked into a gym and begged managers to hide him. He was covered in soot, had a chain on his foot and was wearing only boxer briefs.



This X-ray image provided by NASA, and captured by the German ROSAT satellite in the 1990s, shows the remnant of a supernova that was observed in 1572 by Danish astronomer Tycho Brahe. A new study explores the nature of that star explosion. (AP Photo/NASA)AP - More than 400 years after Danish astronomer Tycho Brahe challenged established wisdom about the heavens by analyzing a strange new light in the sky, scientists say they've finally nailed down just what he saw.



This undated file photo provided by the Illinois Department of Corrections shows Jennifer Hudson's estranged brother-in-law William Balfour. Balfour has been arrested Monday, Dec. 1, 2008 in Illinois in the deaths of the singer's mother, brother and 7-year-old nephew. (AP Photo/Illinois Department of Corrections)AP - A prosecutor alleged Wednesday that Jennifer Hudson's brother-in-law killed three family members because he was angry his estranged wife — the singer's sister — was dating another man.



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In this Aug. 31, 2008, file photo, Boston Red Sox's Dustin Pedroia walks back to the dugout during a baseball game against the Chicago White Sox at Fenway Park in Boston. The Red Sox have agreed to terms with the 2008 AL Most Valuable Player on a six-year contract, the team announced on Wednesday, Dec. 3, 2008. (AP Photo/Winslow Townson)AP - Dustin Pedroia has a Rookie of the Year award, an MVP, a Gold Glove and Silver Slugger and, of course, a World Series ring. And now he's got the big-bucks contract befitting one of the most decorated young players in baseball. The Red Sox second baseman, who earned $457,000 last season while winning the AL Most Valuable Player award, agreed Wednesday to a $40.5 million, six-year contract that could keep in Boston through at least 2014.



New Mexico Governor Bill Richardson (R) listens as US President-elect Barack Obama speaks to the media after introducing Richardson as his nominee for U.S. commerce secretary during a news conference in Chicago December 3, 2008. (UNITED STATES) (Reuters)Reuters - President-elect Barack Obama said on Wednesday struggling automakers have put forward a "more serious" restructuring proposal to Congress but withheld judgment on the plans until hearings are held.



Trading specialists work on the floor of the New York Stock Exchange, December 3, 2008. (Chip East/Reuters)Reuters - Record declines in the vast U.S. and European service sectors and more grim U.S. employment news on Wednesday sparked fear of an economic "free fall," setting up another round of aggressive interest rate cuts.



Students of the Pakistani Islamist party Jammat-e-Islami chant anti-Indian slogans during a protest against the Indian government's claims that Pakistan-based militants were behind the Mumbai attacks, during a rally in Islamabad, December 3, 2008. (Mian Khursheed/Reuters)Reuters - U.S. Secretary of State Condoleezza Rice pressed Pakistan to cooperate fully in the probe into the Mumbai attacks but she also warned India against any action that could stoke regional conflict.



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Treasury Secretary Henry Paulson speaks at a news conference at the Treasury Department in Washington, November 25, 2008. (Jason Reed/Reuters)Reuters - Treasury Secretary Henry Paulson is weighing whether to ask Congress for the remaining $350 billion of the financial bailout fund, with White House aides approaching President-elect Barack Obama's transition team about the idea, an Obama aide said on Wednesday.



Reuters - Imprisoned former WorldCom Inc chief Bernard Ebbers has joined the list of high-profile corporate defendants petitioning for clemency in the final days of President George W. Bush's term in office.

A U.S soldier stands guard during a graduation ceremony at Al-Furat Iraqi Police Training Center in Baghdad December 2, 2008. (Saad Shalash/Reuters)Reuters - A string of departures by the U.S. military's allies in Iraq is turning into an exodus as violence subsides and the end of a U.N. mandate permitting their deployment to the country approaches.



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