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Sunday, November 23, 2008

Online Earnings is a Business Distribution Model

 

 

Online earnings, or Network Marketing, is a business distribution model that allows a company to market their products online directly to consumers by means of direct selling and referral, or word-of-mouth advertising on the internet.

Associates can earn money online in the form of commissions based on the efforst of their organization, which includes themselves and everyone in their downlines. These commissions are calculated based on the individual company’s compensation plan, which determines how an associate gets paid. There are usually many levels of people getting paid from one person’s sales. Also, associates can earn money by retailing products that they buy from the company at wholesale prices.

The other main benefit of the online earnings (Network Marketing) business model is the fact that some of the money spent on advertising and the distribution channel (wholesalers, retailers, etc.) can now go to the people who actually promote the products by their word-of-mouth advertising.

These people have their own business, generating income by recruiting like-minded individuals who want to work for themselves, or customers that just want the products and purchase them directly from the parent company, or a combination of the two. They are called associates, distributors, or independent agents, depending on the company.

In summary, online earnings or network marketing differs from most other types of businesses in that there are no advertising, wholesale, or retail costs involved (no middle men!).

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