Income Opportunities Online
Income Opportunities
By Trina L.C. Schiller
Many people come to the Internet looking for a way to generate an extra income. Most have no idea what it is they're looking for, exactly, and spend a great deal of time bouncing from one thing to another. Let's face it, the Internet provides an endless supply of opportunities, the good, the bad, and the scam.
Basically, there are really only two types of income opportunities available to those who do not already have their own business to bring to the Internet, or have their own product to sell. There are network marketing opportunities and there are affiliate programs. Both require the promotion of a product, or service, either tangible, or digital, that someone else has created.
By Trina L.C. Schiller
Many people come to the Internet looking for a way to generate an extra income. Most have no idea what it is they're looking for, exactly, and spend a great deal of time bouncing from one thing to another. Let's face it, the Internet provides an endless supply of opportunities, the good, the bad, and the scam.
Basically, there are really only two types of income opportunities available to those who do not already have their own business to bring to the Internet, or have their own product to sell. There are network marketing opportunities and there are affiliate programs. Both require the promotion of a product, or service, either tangible, or digital, that someone else has created.
First, let's talk a little about network marketing opportunities, commonly referred to as MLM, or multi level marketing. Network marketing opportunities generally involve the promotion of a company that offers a tangible product, or service. These companies offer commissions based on sales, either by setting up distributors, or a referral system.
With a distributor system, representatives are usually required to maintain an inventory of products to resell to others. The distributor usually pays a wholesale price for the products they sell, and they keep the difference between the price they bought it for, and the price they sell it to someone else for. Most companies that operate in this fashion also give bonuses to distributors who recruit new distributors.
Typically, it is in a distributor's best interest to recruit other distributors, as a way to generate residual income. This is because the majority of companies that use this system of marketing, allow distributors to earn a percentage of the sales generated by distributors they have recruited. And to keep track of all a distributor's recruitments, a matrix is put into place. So, the distributor, in this senario, has two ways to genreate income: 1) by selling products to others 2) by recruiting other distributors.
Some examples of network marketing companies that use the distributor system are:
* Amway/ Quixtar
* Herbal Life
* Life Force International
* Tahitian Noni
Note: A matrix should not be confused with a pyramid. To learn more about the differences between MLM opportunities and pyramid schemes Click Here.
Referral marketing (word of mouth), is a little different. With referral marketing, distributors are not part of the equation. The retail sales of products are not involved. Referral marketing is just as it sounds, participants earn commissions by referring new customers to the company. That is to say, when a new customers buys a product, the person who referred that customer to the company earns a commission on that sale.
Some referral marketing companies will also provide the ability to earn a commission if their referral refers a new customer as well. In this case, as in the distributor system, a matrix is put into place to keep track of primary and secondary referrals.
Example: In my network marketing business, I earn commissions for referring new customers. (Primary referral) I also earn a commission when one of my referrals refers a new customer. (Secondary referral) All of my commissions are based on the sales of products purchased by referrals. There are no retail sales involved, because once I refer a new customer, they deal directly with the company. They order directly from the company, they pay the company directly, and the company ships directly to the customer. All I do is refer the customer and help them set up an account. I earn a residual income from that referral for as long as they remain a customer. The matrix that is put into place by my company allows me to earn commissions on referrals seven levels deep. To use myself as an example, every time I go shopping at my company store, seven families who joined before me, earn a commission on what I buy.
Regardless of what type of network marketing business you choose, both require a source for obtaining prospective customers and/or opportunity seekers, typically referred to as leads.
Amazon.com is one such company that has an affiliate program. You sign up for their program, promote them to others, and if someone goes to Amazon, using your affiliate link, and buys something, you earn a commission. It is a one shot deal.
You can earn residual income with some affiliate programs. TMI Wireless offers an affiliate program, selling wireless services. If someone signs up for service, using your affiliate link, you will earn a commission each month, when they pay their bill.
The most common affiliate programs are those created by Internet marketers, to help promote their own products. The offering of an affiliate program does a couple of things for the product/program owner: 1) the product or service being promoted gets more exposure without any extra effort on the part of the owner 2) the product owner easily builds a contact list through which more products and services can be sold (to the affiliates themselves).
Copyright © 2006
The Trii-Zine Ezine
www.ezines1.com
About the Author:
Trina L.C. Schiller
Publisher - The Trii-Zine Ezine - Internet marketing and home business resources and information. Serving online professionals since 2001.
http://www.ezines1.com/triizine
http://www.trinaschiller.ws
Keywords: income opportunities online, network marketing, affiliate programs, MLM, network marketing companies, Internet opportunities
With a distributor system, representatives are usually required to maintain an inventory of products to resell to others. The distributor usually pays a wholesale price for the products they sell, and they keep the difference between the price they bought it for, and the price they sell it to someone else for. Most companies that operate in this fashion also give bonuses to distributors who recruit new distributors.
Typically, it is in a distributor's best interest to recruit other distributors, as a way to generate residual income. This is because the majority of companies that use this system of marketing, allow distributors to earn a percentage of the sales generated by distributors they have recruited. And to keep track of all a distributor's recruitments, a matrix is put into place. So, the distributor, in this senario, has two ways to genreate income: 1) by selling products to others 2) by recruiting other distributors.
Some examples of network marketing companies that use the distributor system are:
* Amway/ Quixtar
* Herbal Life
* Life Force International
* Tahitian Noni
Note: A matrix should not be confused with a pyramid. To learn more about the differences between MLM opportunities and pyramid schemes Click Here.
Referral marketing (word of mouth), is a little different. With referral marketing, distributors are not part of the equation. The retail sales of products are not involved. Referral marketing is just as it sounds, participants earn commissions by referring new customers to the company. That is to say, when a new customers buys a product, the person who referred that customer to the company earns a commission on that sale.
Some referral marketing companies will also provide the ability to earn a commission if their referral refers a new customer as well. In this case, as in the distributor system, a matrix is put into place to keep track of primary and secondary referrals.
Example: In my network marketing business, I earn commissions for referring new customers. (Primary referral) I also earn a commission when one of my referrals refers a new customer. (Secondary referral) All of my commissions are based on the sales of products purchased by referrals. There are no retail sales involved, because once I refer a new customer, they deal directly with the company. They order directly from the company, they pay the company directly, and the company ships directly to the customer. All I do is refer the customer and help them set up an account. I earn a residual income from that referral for as long as they remain a customer. The matrix that is put into place by my company allows me to earn commissions on referrals seven levels deep. To use myself as an example, every time I go shopping at my company store, seven families who joined before me, earn a commission on what I buy.
Regardless of what type of network marketing business you choose, both require a source for obtaining prospective customers and/or opportunity seekers, typically referred to as leads.
Affiliate Programs
Most retail companies on the Internet offer an affiliate program. Affiliate programs are in a sense, referral marketing programs too. The object is to refer new customers to a business. Commissions are based on sales to referrals. However, unless the company being promoted has a product or service that a customer will be purchasing on a monthly basis, residual income cannot be made this way.Amazon.com is one such company that has an affiliate program. You sign up for their program, promote them to others, and if someone goes to Amazon, using your affiliate link, and buys something, you earn a commission. It is a one shot deal.
You can earn residual income with some affiliate programs. TMI Wireless offers an affiliate program, selling wireless services. If someone signs up for service, using your affiliate link, you will earn a commission each month, when they pay their bill.
The most common affiliate programs are those created by Internet marketers, to help promote their own products. The offering of an affiliate program does a couple of things for the product/program owner: 1) the product or service being promoted gets more exposure without any extra effort on the part of the owner 2) the product owner easily builds a contact list through which more products and services can be sold (to the affiliates themselves).
Copyright © 2006
The Trii-Zine Ezine
www.ezines1.com
About the Author:
Trina L.C. Schiller
Publisher - The Trii-Zine Ezine - Internet marketing and home business resources and information. Serving online professionals since 2001.
http://www.ezines1.com/triizine
http://www.trinaschiller.ws
Keywords: income opportunities online, network marketing, affiliate programs, MLM, network marketing companies, Internet opportunities
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