What is Network Marketing?

Network Marketing Defined

Network Marketing, also known as Multi-level marketing (MLM), is a product-distribution model that allows a parent company to market its products directly to consumers by means of relationship referrals and direct selling.

Independent, unsalaried salespeople of multi-level marketing, referred to as distributors (or associates, independent business owners, dealers, franchise owners, sales consultants, consultants, independent agents, etc.), represent the parent company and are awarded a commission based upon the volume of product sold through each of their independent businesses (organizations).

Independent distributors develop their organizations by either building an active customer base, who buy direct from the parent company, or by recruiting a downline of independent distributors who also build a customer base, thereby expanding the overall organization. Additionally, distributors can also earn a profit by retailing products they purchased from the parent company at wholesale price.

Distributors earn a commission based on the sales efforts of their organization, which includes their independent sale efforts as well as the leveraged sales efforts of their downline. This arrangement is similar to franchise arrangements where royalties are paid from the sales of individual franchise operations to the franchisor as well as to an area or region manager. Commissions are paid to multi-level marketing distributors according to the company’s compensation plan. There can be multiple levels of people receiving royalties from one person's sales.

Compensation Plans

A compensation plan is the method by which the parent company pays its representatives. Network Marketing companies have devised a variety of compensation plans to make their businesses more lucrative.

Stairstep Breakaway plans are characterized as having representatives who are responsible for both personal and group sales volumes (SV). SV is created by recruiting and by retailing product. Various discounts or rebates may be paid to group leaders and a group leader can be any representative with one or more downline recruits. Once predefined personal and/or group volumes are achieved, a representative moves up a step. This continues until the representative..."breaks away" from their upline. From that point on, the new group is no longer considered part of his...upline's group - hence they are a "breakaway". Stairstep Breakaway plans are not level based.
Unilevel plans are often considered the simplest of compensation plans. Uni-Level plans pay commissions primarily based on the number of levels a recipient is from the original representative who is purchasing the product. Commissions are not based on title or rank achieved. By qualifying with a minimum sales requirement, representatives earn unlimited commissions on a limited number of levels of downline recruited representatives.
Matrix plans are similar to a Uni-Level plan, except there is a also limited number of representatives who can be placed on the first level. Recruits beyond the maximum number of first level positions allowed are automatically placed in other downline (lower level) positions. Matrix plans often have a maximum width and depth. When all positions in a representative's downline matrix are filled (maximum width and depth is reached for all participants in a matrix), a new matrix may be started. Like Uni-Level plans, representatives in a matrix earn unlimited commissions on limited levels of volume with minimal sales quotas.
Binary plans are a multilevel marketing compensation plan which allows distributors to have only two front-line distributors. If a distributor sponsors more than two distributors, the excess are placed at levels below the sponsoring distributor's front-line. This "spillover" is one of the most attractive features to new distributors since they need only sponsor two distributors to participate in the compensation plan. The primary limitation is that distributors must "balance" their two downline legs to receive commissions. Balancing legs typically requires that the number of sales from one downline leg constitute no more than a specified percentage of the distributor's total sales.
Hybrid plans are compensation plans that are constructed using elements of more than one type of compensation plan.

The Real Money Rocket
Network Marketing Business

The Real Money Rocket Network Marketing business is somewhat revolutionary in that we take the good of network marketing and tweak it enough to make it the best it can be. There are two things that make the Real Money Rocket network marketing opportunity better than any other network marketing opportunity available today:

Quad Matrix Compensation Plan

Quad Matrix Compensation Plan - The Quad Matrix Compensation Plan allows Independent Business Associates (IBAs) to have a maximum of FOUR Producing Nodes (PN, meaning a node that produces sales volume) on their first level. A PN can be either a Retail Customer or another IBA. In most network marketing plans, the downline only consists of other IBAs. Customers are not included. In the Real Money Rocket network marketing opportunity, the downline consists of BOTH Retail Customers and IBAs. And you can only have FOUR of them on your first level.

Some of your are now thinking, "That means I can never have more than 4 customers!" That would severely limit your ability to make money, so fortunately it's not true! In reality, you can only have 4 customers on your first level. So what happens when you sell to customer number 5? The answer to that question is the reason the Real Money Rocket network marketing opporunity is poised to be the greatest network marketing opportunity ever!

Introducing the Customer Cascade & The Bubble Up

Consider the standard network marketing compensation plan: since customers are not part of the network, that means that some IBAs will have a few customers, some might have a lot, and others might have none.

The Customer Cascade is a revolutionary compensation plan developed by the Real Money Rocket to virtually guarantee that all IBAs have customers! It works like this:

Let's say you have two retail customers and two IBAs on your first level. For each product unit you sell, you receive a commission (for the purpose of this example, we'll use one dollar). Now let's say you sign up another retail customer. Since your first level is already at the maximum of FOUR Producing Nodes, where does this new customer go?

You have TWO IBAs on your first level. The new customer you just obtained will "cascade down" to one of them! Now, you might be thinking, I did all that work and THEY get my customer? Yes, but you get the greater benefit. While your downline IBA will earn one dollar on sales from that new customer, you will earn TWO DOLLARS.

Can you see how powerful this is? Not only have you helped your downline build his business, you will also be well compensated for it! And you must realize, YOU will benefit from your upline's efforts to build their own business! It is a WIN-WIN-WIN situation and the first of its kind in the network marketing industry!

Here's another example: let's say instead of a new retail customer, you recruit a new IBA. Remember, you have two retail customers and two IBAs on your first level. So what happens to this new IBA? First, the new IBA is placed on your first level. Now you have FIVE nodes on your first level (two retail customers and three IBAs). Since that's not allowed, one of your retail customers will cascade down to the first eligible IBA! You keep your FOUR first level members and your downline IBA gets a new customer!

Free to Learn More

This has been a simple example of the Customer Cascade, and we haven't even discussed the Bubble Up plan. The actual compensation plan numbers and more details are available to members of the Real Money Rocket. Since you can sign up for free, there's no excuse to not check us out today!