PayPal came along and offered referral fees for opening accounts with them and currently they are the biggest of their kind on the net.
AllAdvantage, Google, Skype, MySpace, and most portals somehow or another have leveraged the network effect and a few have reinforced the network effect through incentives, referral fees, and sometimes multi-level compensation. Consumers are sending a clear message; they want the content, but preferably without the ads. To assume that the Internet will be any different is naive.
Once people properly understand the tremendous power of the network effect it is much clearer why most start ups bite the dust because they were done in both by a combination of the high cost of capital, and the tremendous cost of sales and marketing. Look at social networking and review some of the facts.
Facebook is only three years old, was founded by a university student and even in its stages of infancy it ranks number 18 in the most visited websites in the world!
People, in the US alone, claim to have more friends than they did two or three years ago because of social networking. The Neilsen/Netratings report (May 2006) stated that Social Networking sites grow 47% year over year. Millions of people daily are having fun with Social Networking, it is real, massive and will continue to grow. Come on folks, these are some amazing facts!
Today with the internet, network marketing is just exploding. 10 years ago most people who were introduced to network or Multilevel marketing where introduced by a friend or relative. Through the web people can now bring their Network/MLM opportunities and their products to so many people.
They can now bring them instant audio, video and full explanations of their business instantly. In Network Marketing people must remember that people buy based on emotion normally, not because they like the product or the company necessarily but because they like the presentation and the presenter. That is some powerful stuff to remember!
If a prospect feels that you are a person that they might like to do business with then they will buy because they feel that you have value. If they are considering your MLM venture then they will come because they know that you will be the one to help them have a better life or increase their income. The deal is you must be more of a consultant and less a salesman.
In order to consult you should know the product and know how to allow the prospect to sell them self on what they are buying. In the early days, Internet marketing was all about building a website or putting up banner ads on other websites. A website with appropriate text content, image inclusions and audio/video features is an excellent option of reaching out to a global audience and informing them about a company's products/services and their features.
Multilevel Marketing (MLM) is a marketing phenomenon used by various enterprises and business entities to further their sales and profits. Business directly relates to sales and purchases. Each and every business is operated with an intention of earning profit. Developing, planning, executing and implementing proper sales leads should be the main aim of the business to boosts their sales and thus increase their profits.
In earlier times marketing was done by door to door sales, then the concept of advertisements in radios and televisions came into light, later on retail sales through Internet was implemented. In this example one can see that as the nature of the market is changing very quickly, new and new methods are also adopted by the companies according to the market conditions.
To get first rate internet marketing tips and all round good 'business-building' advice, visit Ray Johnson's Official Internet Marketing Blog @