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
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.
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.
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.
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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.
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.
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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.
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.
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.
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.
Reuters - All options were on the table on Wednesday as congressional committees scrutinized auto company restructuring proposals and an urgent appeal for $34 billion in aid ahead of make-or-break hearings.
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AFP - India on Wednesday warned that all options were open in dealing with Pakistan after last week's attacks on Mumbai, as the United States pressured Islamabad to show urgent cooperation with the probe.
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