The first question many people have is "Is it a pyramid scheme", and most people don't know what a pyramid scheme is either. Wikipedia defines it thus: "A pyramid scheme is a non-sustainable business model that involves promising participants payment or services, primarily for enrolling other people into the scheme, rather than supplying any real investment or sale of products or services to the public."
My network marketing business is partnering with a UK based Public Limited Company listed on the London Stock Exchange who were established in 1996 and they provide key utilities for businesses and households in the UK. I'm an independent distributor for that company, not an employee, and I earn a small commission every time I sign up a member with that company, and a small commission every time the members pay their utility bill. I'm building the business by showing other people how to sign up members and I earn a smaller commission each time their members pay their bill to my network marketing company. So as you can see, I'm paid commission by my network marketing company for the work I do. The more members who I sign up, the more I'm paid, and that's the interesting bit.
When I continue to receive commission as people pay their bills, that's what's called residual income. It's payment for work I did once, continuing as long as they remain a customer, and I remain a distributor. And it means I can go on holiday, and still get paid. It means I might be ill and still get paid. Once I've been in the business for long enough and reached a certain status I can choose to lock in that income and effectively retire, whilst still receiving that income. As far as I'm concerned that's the pension income. It's a way off yet, because this is a 5-10 year plan, it's not a get rich quick scheme!
What I like about this business is:
- I don't have to stock any products.
- I can fit it in with the rest of my business
- I meet a lot of great people
- I get a lot of free personal development
- I help people save money and the company do the rest.
