About a year ago, my father introduced me to the concept of harnessing the power of the internet to earn residual income. I became fascinated by the idea of creating residual income; achieving financial freedom and success beyond my wildest dreams. Residual income is the best kind of income to have since you dont have to work for it, instead it grows through the possession of certain assets which appreciate through time like real state, stocks, and mutual funds. After reading countless of books I was sold on the idea of network marketing which allows the average person to start their own business with minimal risk and capital investment to build this residual income.

A network marketing company markets their products through independent sales associates who in turn recruits other associates to build a team where the associates earn a commission on the sales volume of his entire team. Therefore with this kind of business structure, the earning potential grows exponentially as more people join the team. Most people develop their network marketing business from their own home in their part time, therefore it is not necessary to quit their jobs which makes it ideal for stay-at-home moms who are looking to create an extra stream of income without neglecting their families.

In addition to all this, when you combine the power of the internet and the ingenious compensation plan of many network marketing business, the average person can achieve staggering levels of financial success. Old fashion network marketing systems involve the associate going to their friends and family in order to build their business by selling products or recruiting prospects. In order to make money with this old fashioned network marketing system, a lot of resources are spent in presentation and advertising. However when someone uses the power of the internet to build their network marketing system, it is not necessary to bother friends or family anymore because the associate can generate leads or sell their products by advertising for free online. There are hundreds of ways to advertise by using the internet, as a result you are never limited to the amount of leads that you can generate and the income you can achieve.

Another great benefit of owning your own business as opposed to being an employee is the taxation benefits, which alone make network marketing worth checking out. When you have your own business you can deduct endless amounts of expenses like a portion of your mortgage, car, computer, and so forth. It is not even necessary to make money from your business to take advantage of these taxes benefits, all you have to do is to prove that you have worked on developing your business.

If you decide that you want to be a part of network marketing, there are certain guidelines you should follow to ensure that you choose a successful company that is right for you. Here are some steps to follow.

1) THE PRODUCT. Make sure that the product offered is of high demand and quality, and is something that people will most likely consume over and over again.

2) THE COMPANY. Beware of companies that are just starting out. I suggest you choose a company that has been around for at least 5 years and which has proven itself by growing in the past few years. Longevity is the key. It would also be good to find publicly traded companies because their financial statements are available online like www.morningstar.com, www.nasquad.com or www.valueline.com.

3) REPUTATION. Check the company with the Better Business Bureau for any complaints against the company or fraudulent business activities..

4) COMPENSATION PLAN. How often do you get paid? What is the commission you will receive? Do you have to meet certain quotas to receive commission and how much is it? Make sure the compensation plan is fair to you.

5) TRAINING. In network marketing, the people on your team will most likely help one another to succeed, therefore make sure that you belong to a successful team and that there are regular training sessions scheduled and that your sponsors are easily available for questions and support.

Once you have made the decision to start up in network marketing system, make a commitment to spend between 10 to 15 hours a week to start this business. Many people have been able to match or surplus their salaries by network marketing, however this requires motivation and commitment, but the rewards can be staggering levels of financial success and freedom