HOW DOES THE STRUCTURE OF NETWORK MARKETING WORK?
Network marketing is a network system, where there are people who are above you, they are your sponsors, they are all those who started before you, but there are also people below you, who are all those you affiliated, who you gave them entry to the business. Your income will be determined by the commission of each affiliation, in turn, you will also be able to generate profits for those who enter the business with your affiliates, all this will provide benefits to you, basically this is how the Network Marketing structure works.
Example of the structure of Network Marketing.
We explain to you, in this business there will always be someone who heads the group of people in the network of contacts, below, will be all those that she affiliated, and those people in turn affiliated more people and thus more and more affiliates enter, in this way that network will become larger.
Generally, in Network Marketing, they are handled around a range of 4 to 5 levels, in which you receive commissions Keep in mind that receiving infinite commissions would not be profitable for this system, otherwise it could not be sustained to distribute the profits among all those who participate in this network
Now a more practical example:
A person built a network of contacts, with a certain number of affiliates in 5 levels below it, of course it could have 6 or 7 more levels, but this person only collects commissions for 5 levels For each person directly or indirectly affiliated, you receive a certain percentage, let's say 10%, if a person on your 5th level gets the product for 10 dollars, each person on the 5 levels above you will receive 10% commission, that means that , of the 10 dollars paid by the person who bought the product, 5 dollars of which represent half the value (50%) were allocated to the 5 people in the 5 levels above her, distributed, of course, in equal parts (1 $ for each one), and the other 5 dollars (the other 50%), are destined to the company, to pay employees, pay taxes, invest, among other things.
You must be astute when you come across Network Marketing companies that offer 50% or even 60% in commissions, because you may be in front of a fraudulent company, which is probably trying to attract people and then disappear
Network Marketing is a business that is very well established and completely legal.
The great advantage that the Internet offers us is this, you can use a completely automated system, which can locate you in a certain place and maintain control over you and your affiliates to determine the correct payment for each of them, when entering the business of the Network Marketing, you will have a control panel, in which you will
How does Network Marketing manage to control so many people and reserve the exact commission for each one?
have a view of the record of everything, you can see the people you affiliated with their data and those of their affiliates, observe your commissions and be aware of everything you need.
