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Network Marketing Structure Part 1

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Those Who Fail to Plan, Plan to Fail
Welcome to Network Marketing Structure – Part 1! This book is the first part of an
exciting 2 part series.
Why have I written this book? If you are familiar with the network marketing industry,
you will have no surprise why the majority of new distributors or networkers spend a
lot of time in network marketing training because they simply don‟t understand
how the compensation or marketing plan in their company works!
Every year, network marketing companies and teams spend thousands on
marketing plan training because many people simply find marketing plans today too
confusing or people just don’t take network marketing serious enough to be well
equipped.
Isn‟t this alarming? Consider this:
 Would you be in a profession if you don’t know your career path?
 Would you work in a job if you don’t know how much you are getting paid?
 Would you give away money for free?
We all know the answers to these questions, BUT, in network marketing, proper
understanding of the marketing plan (not only yours but others in the industry) will not
only save you lots of time, but will also determine the rest of your network
marketing career! This is even more so for people who plan to start their own network
marketing company offline or online.
When I first started out with my network marketing career, I was so clueless about my
company’s plan that it was almost laughable. When my prospects ask me how much
do I get paid at this level, I would call my upline in front of the prospect and ask him the
questions. Towards the end of the prospecting session, I think I must have called my
upline at least 4 times! (Thankfully the prospect signed up)
I have also seen people lose thousands of dollars because of wrong placement of the
downline causing massive residual income to be wasted due to poor planning and lack
of understanding. You don‟t need to be a mathematical genius to understand
plans, just simple calculation and mechanics to master.
After you are done with this book, you will learn how to:
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 Differentiate between typical plans and how to make money there
 Choose a good network marketing company based on how good is their
plan
 Develop confidence in front of your prospects
 Close the deal with other networkers by simply stressing the benefits of
your plan over theirs and bring them into YOUR organization
 Develop a strategy to building your network for the long term
 Avoid costly mistakes by placing your new downlines under the right people
to maximize your profits
 Start from scratch your own network marketing company the right way
(whether it be online or offline) saving you heartache and disaster!
Now, let‟s get ready to dissect the plan!
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Terminology and Jargon You Can‟t
Live Without
If you expect to start a successful network marketing company or build a very large
network, you had better get familiarized with the terminology or jargon!
Builder
A builder is a distributor who is actively looking for downlines. A builder is not the same
as a customer who only consumes the products or recommends them to friends.
Upline
You are in their organization. An upline usually earns commission from your group
volume. You may have several uplines possibly up to 10-20 levels in depth. Normally,
an upline is responsible for your success. An upline may not necessarily be an upline
leader/mentor.
Upline Leader/Mentor
This is an upline that you actively seek counseling from on how to build your business.
They are here to guide you and are here to mentor you and make sure you succeed in
the business.
Sponsor
You are directly under him or her. Normally they are the one who introduced you to the
company.
Downline
They are in your organization. Depending on the nature of the plan, your commission
from their group usually is smaller the deeper they are in the organization. Sometimes,
your downline’s downline could be many levels deep in your organization so you might
not even know him personally.
Sideline/Crossline
These people are not in your organization and neither are you in theirs. Basically there
are no monetary relationship between your group and the sideline’s group. However,
depending on the culture promoted in the company, they are either perceived as the
worst competitors, or valuable allies. Take note also, that somewhere along the line,
they are also in your upline’s group, so helping your sideline means helping your upline
and his group