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The Business Model
Education
 

The business model is the heart and soul of every business.

When I first learned about Network Marketing and started doing my research on the industry I realized that I would have to have a complete understanding of how the business model works. I also realized that if I was going to be able to teach other people how to develop a life time monthly income by working as an independent contractor I was going to have to be able to teach them how to completely understand the business model.

The first problem I saw with this is I will be trying to teach average working class people who have never even thought about a business model and don't have a clue of what a business model is. Most people who are working regular hourly paying jobs never have a reason to learn about business models or how they work. The business model is the heart and soul of every business. One of the main reasons I choose a company like GDI as my primary company to work for is because I knew I would need the right tools to teach people how to understand the multilevel business model.
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Every company and business is designed around a business model and they all have several parts. Every industry has it's own business model and each company designs their own business model to make their company work like they want it to. For example there is a business model for retail stores that sell products to the public for a profit. Retail stores don't make the products they sell, they buy them at a low price and resell them at a marked up price. There are a lot of different types of retail stores and each one designs the retail business model to fit their own needs so they can do business the way they want to. Factory's are designed around a business model for manufacturing company's. I worked in the heating and air conditioning industry for over 25 years. Heating and air conditioning companies are designed around a business model for service type businesses but also have retail elements as part of the business model. In the heating and air conditioning business model we bought heating and air conditioning equipment that was made by someone else and installed it in peoples houses and made a profit from both the equipment sold and the labor of doing the work.

The heating and air conditioning industry is where I learned how to work as an independent contractor. I did a lot of my work as an independent contractor, companies that needed heating and air conditioning equipment installed but that did not have enough hourly employee's to get all their work done would hire me to do their extra work for them. I could do this because I already knew how to install the equipment from years of working in the industry. In the heating and air conditioning industry working as an independent contractor was a normal way to work. The same is true in the Network Marketing industry, working as an independent contractor is the normal way everyone works. Working as an independent contractor is how people work for Network Marketing companies and is part of the business model.
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Network Marketing companies sell products and services to customers, the difference is how they distribute them to their customers. Network Marketing companies sell their products and services straight to the customer, we call this direct sells. The customer buys the products and services directly from the company. What this means is you can not go out and buy their products or services at any retail store or retail outlet. The important thing to know here is that we as customers do not have to buy the products and services and then try to resell them, we only have to buy the products and services that we are going to use for our own personal use. This is where a lot of people get confused about the multilevel business model, they think that we sell the products and services when we actually don't. To work for a Network Marketing company you do have to be a happy loyal customer first but you never have to buy and then resell any type of products and services if you don't want to. On one of the previous pages of this web site I go into detail about how this all works.

One of the most important parts of every business model is how a company is going to find new customers. Marketing and advertising is how every company finds new people to become happy loyal customers. Network Marketing companies are designed to let the happy loyal customers do all of the marketing and advertising for them. They all use some type of customer referral program that gives the happy loyal customers the ability to earn the money that the company has designed into the price of their products and services for marketing and advertising. Most companies call this a home based business opportunity. The home based business opportunity is also called the compensation plan. The compensation plan describes how the commission is paid out to the customers who are working the home based business opportunity. Network Marketing companies do not do any of their own marketing or advertising, it is all done by the customers.
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Once you mentally grasp these facts about the multilevel business model you should be able to see the benefits of becoming a happy loyal customer of a Network Marketing company. Knowing what you know now about the multilevel business model should create questions in your mind like, how many customers will I need to find and what responsibility to them do I have after they become a happy loyal customer. That is what I wanted to know when I learned about the multilevel business model. I realized that as a working class American I would need a company that had a business opportunity that didn't cost much money and I could work it in my spare time. After looking at over 50 companies I decided that GDI is the best business opportunity for a working class American like myself. GDI is a complete business package with everything you need included and you will only need to find 3 to 4 loyal customers to make the business model work for you.

The compensation plan is the part of the business model that describes how the commission is paid out to the happy loyal customers who are working the business opportunity. First you need to understand where the commission comes from, every company that sells products and services has to do marketing and advertising. The cost of the marketing and advertising is always designed into the price we pay for their products and services. A good example of this is our cell phone service providers, mine is Verizon wireless. Every month when I pay my bill a part of that money helps pay for the marketing and advertising Verizon does like television commercials. That is because the cost of that marketing and advertising is designed into the price I have to pay for my cell phone service. Another good example is stores like Walmart, each month I do a lot of shopping at Walmart and a part of the money I spend there is used to do their television commercials and other types of marketing and advertising. That's because Walmart has priced their products to include all of the cost of the marketing and advertising they do to keep a stead flow of customers shopping and spending their money there. The fact is that every product or service you buy has the cost of marketing and advertising included in the price you pay. This may or may not have been something you have thought about before but it is the way the world of business works and it is part of every business model in use today.
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Now the you know the cost of doing marketing and advertising is always designed into the price of every product and service in every business model used today you have the right knowledge to understand how a business model works. Now that you know that the customer is always paying for the cost of the marketing and advertising because it is designed into the price we pay for all of the products and services we buy you have the right knowledge to understand how all business models work. There are two very important reasons that marketing and advertising have to be part of every business model. Finding new customers and keeping the existing happy loyal customers are every important to every company and business. When I started doing research on the Network Marketing industry and saw how these companies are designed to let the customers earn the money that is designed into the price of the products and services for the marketing and advertising I thought that this is awesome concept. If you are reading this you should be getting the same mental picture if you are grasping how a business model works for people who understand them.

The Network Marketing profession is all about developing your own business model to develop a life time monthly commission based income. We do this by picking the right Network Marketing companies to work for as independent contractors. My goal when picking a company to work for was to find companies that would give me the ability to teach average working class American's like myself the profession of Network Marketing. I picked GDI to be my primary company for several reasons, the first is they provide the right tools at the right price. The second reason is I like how they have designed their company around the multilevel business model and with a very simple to understand compensation plan. In my opinion Michael Starr and Alan Ezeir have created the right type of company for the average working class American like myself. The products and services are web site related, GDI is a domain name register so you can pick your own domain name. A domain name is the address of a web site that you type into a browser to visit a web site. GDI provides the monthly web site hosting services and includes all the tools needed to build a web site and have it live on the internet in just a few minutes. A web site is a marketing and advertising tool that can be used in many different ways. A web site is a place of your own where you can display content that you want to share with other people. A web site is a great place to share an ideal and the education of how something works like I am doing here with the Network Marketing profession.
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In my business model I have no plans to look for people who want to own or build web sites. My plan is to find people who need or want to develop a life time monthly income. The problem I see here in America is our hourly paying jobs do not provide us with enough income to live a decent life so we are going to have to pursue additional monthly income besides what we earn at our jobs. I believe we can do this with the Network Marketing profession because here in America we have the right to start our own business and pursue as much monthly income as we want or need. I plan to use my web site to teach my fellow American's how to do this by illustrating how monthly commission works and how working as an independent contractor is the right way to develop a life time monthly commission based income.

The compensation plan is the part of the business model that describes how the commission is paid out to the independent contractors who are working the business opportunity. The multilevel compensation plan can be confusing to people when they first look at it because in order to understand it you have to mentally grasp the mathematical formula and the mathematical theory's it is based on. We call the compensation plan the Income For Life program because it has been designed for people who want to develop a life time monthly commission based income. The GDI compensation plan is based on an Affiliate membership program with two membership packages. GDI has a basic membership package and a premium membership package. The basic membership package is where everybody should start and does include everything you will need to start and run your own business. The basic membership package cost 10 dollars a month and starts with a free 7 day trail period so people can check out all of the tools it includes and try them all out.

You have already learned that the price of all products and services always include the money that every company spends on marketing and advertising. GDI has designed the basic membership package so that 5 dollars of the monthly purchase price will be paid out in the form of monthly commission. This is where it gets confusing for a lot of people, in the multilevel business model the commission is divided up into what we call network levels. GDI has divided the 5 dollars evenly between 5 network levels, that means the GDI compensation plan is a 5 network level plan with each level paying 1 dollar.
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Illustration # 1

GDI is a 5 network level compensation plan.

Network Level # 1 pays 1 dollar

Network Level # 2 pays 1 dollar

Network Level # 3 pays 1 dollar

Network Level # 4 pays 1 dollar

Network Level # 5 pays 1 dollar

The first time I looked at the multilevel compensation plan I wanted to know why the commission is divided into levels. If you are looking at the multilevel compensation plan for the first time you should be asking the question why is the monthly commission divided into 5 network levels. The answer to this question is math, if you are going to try to find enough customers to earn a decent living working for GDI as an independent contractor you can not do it all by yourself. The fact is that no one knows enough people to build a large profitable business all by their self. The people who created the multilevel business model knew that working class American's would never be able to find enough customers all by our self to build a profitable business so they created the multilevel business model to help us.

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To completely understand the business model you will need to understand the logic that was used by the creators of the business model when they created it. Their goal was to create a system where the customers did all of the marketing and advertising for the companies products and services. The best way to understand this is to look at the difference between a 1 level compensation plan and a 5 level compensation plan.

If you were going to try to earn 3000.00 dollars a month with a 1 level compensation plan where you earned the whole 5 dollars a month for each monthly customer you signed up for the GDI products and services you would need to find 600 customers. That would be a lot of work for one person to do all by their self. It would be a full time job and require a lot of time and effort.

Now let's look at the logic of the multilevel compensation plan where all of the customers have the right to find new customers and earn commission on 5 network levels of happy loyal customers. Instead of looking for customers who need or want the GDI products and services you would set out to find people who need or want to earn more monthly income. You look for people who want to earn at least 3000.00 dollars a month and like the thought of owning their own business. You will only need to find 5 people that want to start and run their own business and these people will become your networking business partners. Our marketing efforts are always focused on gaining peoples interest in the Network Marketing profession and the Income For Life program. Our preferred type of customer will be the people who are not happy with the current amount of money they are making at their hourly paying job. The work we do is centered around teaching people how to become a teacher of the Income For Life program. The people we personally teach and sponsor into the program become what we call our network level # 1. This process continues down to level # 5 and even continues past our own levels. We use a term called geometric growth to describe this type of business growth.
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The income calculator is a tool we use to teach people how geometric growth works. By entering the number 5 into both of the fields on the calculator and clicking the equal button you can see how everyone has the potential to earn 3000.00 dollars a month by just training 5 new people to work as an Income For Life teacher. On this calculator where it say's layer 1 represents your own time and effort of finding and training new people who want to develop a life time monthly income. The business model gives us the ability to develop a life time monthly income by going out and looking for people who want to earn more money instead of having to look for people who want or need the products and services. What we are doing is looking for people who want to become our business networking partners.
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The business model is designed so that anyone can learn how to use it to develop a life time monthly income with it. One of the best things about GDI is the owners of the company want us to be able to earn a large monthly income and have designed the compensation plan to reward the people who are willing to get out and start teaching people how the program works. If you become a good teacher of the program GDI has designed the system so that you can get a raise and earn more commission. The premium membership package is an upgrade package that gives us the ability to earn a lot more monthly commission. When you open the income calculator in a separate web browser tab you can play around with it and see for yourself how it works.

To open the income calculator in a separate tab click on the picture of the calculator below. Enter the number 5 into the buttons on the left side. Enter the number 5 in the first and second button and the fourth button to illustrate the income potential we all have by just finding and training 5 people to work with us as a business partner.

Our goal in the Network Marketing Profession is to teach our fellow American's how to develop a life time monthly income using the GDI Income For Life program. This can be done in your spare time if you can learn how to work the business the right way. My goal is to teach you the right way.