Actually, that’s the beauty of it. As every marketing professional, Hollywood producer, and corporate giant knows, the single powerful form of promotion in the world is personal word-of-mouth. That’s why television commercials spend millions to hire actors to talk just like your mom, your spouse, your best friend, or your kids: they are imitating personal word-of-mouth. In network marketing, we use the real thing. The real power of the model-what you talk about, as leverage-is that as a representative, you aren’t paid commissions only on products used by the people you refer to the company, but often on products bought by the people they refer, directly and indirectly, that can really add up. So, does it work? You know the answer to that one: Direct selling/network marketing today does well over $110 billion in annual sales globally, which makes it an economic bloc roughly the size of New Zealand, Pakistan, or the Philippines. (I often describe this business model with both the terms “direct selling” and “network marketing” because today most direct selling companies employ a network marketing focus. However, for the purpose of this blog, I will just use “network marketing” in my references.) One reason that the total sales from network marketing keeps growing is that it’s a true win-win. The company gets an amazing level of market penetration and customer awareness that would be very tough and very expensive to get with traditional marketing. And the independent rep has the opportunity to create significant cash flow. How? By harnessing the power of word-of-mouth or person-to-person relationships to build a substantial network that represents the company’s line of products and/or service. In network marketing, you don’t hire employees, you sponsor individuals who are all independent representatives, which everybody like or not wants. But the same financial dynamic applies: By the time your network of independent representatives grows to be 300, 400, or 500 strong, you’ve got a serious organization that delivers significant residual income. this is the basics.