subject: What Is A Network Marketing Distributor? [print this page] A network marketing company conducts business by selling products and services through a network marketing distributor. This is the same thing as being a distributor for an MLM or multi-level marketing company. Individual distributors work for the company as an independent business, building their team, and selling the products and services. Each distributor is their own boss within their business. They will work to build a team of other distributors for the main company, helping them to grow; much like their up line helps them.
To become a network marketing distributor is as easy as choosing a company to represent, then paying a small (sometimes large) fee and giving a signed agreement. Once this happens, the company may offer training and materials to start the business. Often the company will give a training kit, which may have starter products or services. They may offer training seminars via webinars, or live in their locale, or even on a conference call. The fee always covers the price for beginning kits, and training. A company that requires a fee with nothing else in exchange needs to be turned into the Better Business Bureau.
Generally, a network marketing distributor receives deep discounts on the company's products or services. Quality companies know that in order for a distributor to do well, they need to use the products or services personally as well. If it is for products, the distributor buys them and retails them, making a nice profit, part of their income. Some network marketing companies may give bonuses if the sales volume increases. The earnings policy varies with each company. Most will offer larger earning potential if the sales volume goes up.
A network marketing distributor also works to build a team of other distributors. This is another way to increase earnings within the company. Most companies will offer a percentage of the sales of their down line as well as their own sales. The more they bring into the company the higher their commissions will be. This is why distributors will work so hard at recruiting. Eventually they can sit back and let their down line earn passive income for them. Some companies even allow for commissions from their recruit's recruits too.
Working for a network marketing company normally means the distributor is a sole proprietor, meaning the individual distributor will be responsible for their own taxes. It is wise to keep good records, of every penny invested into the business even to have a designated home office. A home office is tax deductible and many people find this helps to lower their taxes. Keep all sales records too, and tax season will not be so hard to deal with when the time comes. Stay in compliance with the agreement with the company to maintain distributorship. It is rare to find an MLM company that will pay taxes for a distributor, or call them an actual employee rather than a contracted worker. This is why a distributor is said to be running their own business.
