| It is a well-known practice in business that | | | | |
| networking is the most efficient means of | | | | No longer do people have to get out of the |
| gathering resources. Whether it be for | | | | house to run their business and many have |
| information or in some instances help in | | | | made a success at offering the sale of |
| difficult situations, networking became the | | | | products and services online. To increase |
| buzzword of most businesses long before the | | | | their sales they simply sold franchises who |
| growth of the internet and global | | | | would advertise on their own to bring |
| communications. The idea of getting to know | | | | potential customers to their unique company |
| others in similar business positions allowed | | | | web site. Of course, like the brick and |
| companies to position themselves to offer | | | | mortar franchises they would pay an initial |
| services to others in their network, | | | | fee to use the company's services and name as |
| expecting them to "return the favor" when | | | | well as an ongoing fee to continue using the |
| they needed the services offered by their | | | | company's resources. |
| business. | | | | |
| | | | Still, with no protected territory the new |
| Another method of expanding their presence | | | | business owners had little worry since the |
| and sales used prior to the internet was | | | | entire globe was their open territory. They |
| franchising. A person wanting to run his or | | | | could market online to a global customer base |
| her own business, but lacking a business plan | | | | and when the opportunity to recruit others to |
| or even a viable product, could open a branch | | | | distribute the product and receive a piece of |
| of an already successful business and become | | | | their sales action, a few decided that it is |
| an owner almost overnight. Using the | | | | easier to sit back and collect an income off |
| company's experience, product and established | | | | the work of others, and shifted their focus |
| name recognition, they could quickly build | | | | to recruiting distributors instead of selling |
| their own business. They paid, sometime | | | | on their own. Additionally, they could urge |
| dearly for the use of the company's name a | | | | their distributors to recruit more |
| business model, but they usually ran a | | | | distributors to sell more product and receive |
| successful operation. | | | | a commission on their sales as well. |
| | | | |
| Most pre-internet opportunities were limited | | | | With each successive level of distributorship |
| by geography and when a person bought into a | | | | the sales commission would be less, but the |
| franchise they were guaranteed a prescribed | | | | focus was to bring in as many distributors as |
| market and guaranteed limited local | | | | possible, rationalizing that if 1,000 |
| competition from the same company. Once the | | | | distributors made sales providing the first |
| internet grew, offers to open franchises | | | | guy on the list a nickel, they made $50 for |
| exploded with its growth, and the issue of a | | | | doing nothing. Being able to use the internet |
| protected market was quickly dismissed. | | | | to reach the global audience, new |
| Building a global marketing network became | | | | distributors and new sales will quickly |
| the rage and today it remains the goal of | | | | produce more profit and using a global |
| many businesses as well as opportunity | | | | marketing network, their payback is increased |
| seekers. | | | | income. |