What is network marketing?
We say network marketing, direct sales business or network marketing as it is also known, the one in which companies offer their products or services directly to someone through an independent distributor like wholesale, ignoring the advertising itself and thus eliminating the chain of intermediaries that in a traditional distribution system make the product more expensive.
network marketing is considered a business model or type of strategy qualified as micro branches, which is among the advantages for those who have start a new business as a promotor and know about marketing
More of the marketing…
The products sold by companies dedicated to the other marketing business, as they are also called, are not available in stores, supermarkets, pharmacies, or traditional businesses like medicine which is short in the market, so people who want to start a business with this strategy must acquire the personal branch that enables you to be able to sell your products, consume them and get more promoters who will belong to your distribution network. And like this type of this marketing is worked
Also, a network marketing is good for those who start their first business and have risk to invest, It needs to start its business with this strategy to become a good businessman and earn with its business with a low value of the investment, so it is good to start with this marketing
Network Marketing: Example
Up to this point you may or may not have understood the idea of what network marketing is. But it’s always good that things are better understood when examples are used. So that you understand and choose your option of marketing, observe the following examples:
Many marketing experts agree that Avon was the pioneer of multi-level marketing. It is the most famous company in terms of beauty, makeup, personal hygiene, and daily use products, it effectively uses network marketing. It is a wide range of wholesalers and network marketing that sell its products at low prices at high profitable margin
Previously, Avon sellers were provided with a series of catalogs in which they displayed the available items. They selected the items they thought they would sell to companies and small shops to try and after 2 products they sold at a high price.
Nowadays
With the changes, Avon has a space on the web where it gives its sellers the option to see and order the items they want to sell. Everything digitally. It is not for nothing that digital network marketing has become quite popular in the last decade.
It is that simple to obtain products to sell and obtain acceptable economic income. Of course, sales will depend directly on you as a seller and on the persuasive ability, you have to get sales.
Now, regarding the mode of delivery of the order; normally the distributors do it in a period of between 5 to 15 business days. Some companies even do it in a personalized way. In addition to maintaining contact with the person to agree on a price and resolve existing doubts.
To finish, and understanding what network marketing is as a business model or type of marketing qualified as micro franchises, among the advantages for those who undertake it as a promoter, it has a very low cost of entry with great income potential. We invite you to continue learning.
Who is it recommended for?
With over a century of refinement and experience, MLM has proven to be a consistent strategy that can deliver good results for businesses and retailers alike.
But could it work for anyone?
Unfortunately, not everyone has the right profile to work with network marketing.
To become a successful businessman with this strategy you have some experience and followed on the following tips or things:
- dissatisfaction with current job or desire to revolutionize work life;
- have time available to invest in building a network of clients and selling products;
- discipline and perseverance.
Remember that building a network is slow. This process can often take up to 5 years.
So ideally, anyone who decides to work in this field should do careful financial planning and wait until their network is big enough.
Is network marketing a pyramid scheme?
One of the biggest fears for anyone who wants to invest in network marketing is falling into a pyramid scheme.
This fear is quite understandable since some companies have used this strategy to mask illegal businesses, such as the financial pyramid.
However, it is very easy to differentiate an MLM-based business from a pyramid scheme.
The main (and sometimes the only) source of profit for a financial pyramid scheme is the addition of new people to the business. In this case, members-only get a commission if they attract more distributors to the scheme. And the more participants in the pyramid, the higher the promised profits.
This creates unsustainable chains because they depend on attracting new sellers. Then the adoption of the scheme becomes untenable and it collapses, harming everyone involved.
In network marketing, on the other hand, this does not happen. The focus of the business is the sale of products and services that have real value. The reseller is rewarded for what he sells and also for the new resellers he attracts into the direct sales structure.
So, in addition to the profits from what you sell, you receive a small portion of the sales from the distributors you’ve recruited. In some cases, it is also possible to receive a part of the sales of the sellers recruited by him (at other levels).
As you can see, it is more than clear that network marketing is not the same as the financial pyramid, since it is a legal and regulated activity.
What are the advantages of multilevel marketing?
Although some people still frown on it, network marketing is an extremely advantageous strategy for businesses and resellers.
Companies that decide to make room for this tactic can expand their reach and sell more without investing in opening branches. And that translates into cost savings, price drops, and a streamlined sales process since there are no middlemen.
In turn, anyone who decides to become affiliated with a brand and resell its products also has many benefits.
The main thing, and perhaps what attracts most people, is the possibility of becoming an entrepreneur and having a more flexible work routine.
In network marketing, sellers are free to set their own working hours, have no boss, and can more easily balance work and personal life.
The MMN is also a great alternative for those who want to increase their income, but cannot leave their current job. Additionally, this strategy values meritocracy, as revenue is directly tied to each reseller’s efforts.
Tips for investing in network marketing
As we said, multilevel marketing is simple and low investment, but to achieve your goals with it, it is necessary to invest in some actions. Are they:
To plan
Anything we do in life requires planning, and that also applies to network marketing. To avoid loss don’t work with one company and chose different products and different products.
Chose your most selling and high earning product that is short in the market, And sell it to companies and shops for more income and millionaire
For example, you can get in touch with a custom label factory, if this is the type of product you want to work with, you need to start offering this product in some profit margin.
It is important that you have some relation and know the market before start you need to study the market And contact some sellers who give you products in low price and you get some profit on it
Finally, make a list of daily tasks and aim for big gains in the long term, since this type of business requires effort to build your network.
It is in the long run that your earnings will exceed your salary and still guarantee passive profits.
choose good suppliers
Choose a good supplier that gives you products at a low price and you get profit on it. Like you buy perfume for 20$ and sell it for 30$ to consumers and companies and small shops and you get a profit of 10$.
make good partnerships
Partnerships are critical to success and to ensure good returns on your network marketing investment. This is how you increase the number of customers and increase profits. It’s on you to choose your partner as good as your business.
Share on different channels
With the advent of the internet, it has become much easier to advertise any type of business, from an oriental-style wallpaper maker to a diner.
In view of this, you don’t have to wait for the effects of word of mouth or work with traditional media. Ensure the presence of your business on platforms such as Facebook, Instagram, and other social networks.
They are great for building and strengthening relationships and even helping to win new customers.
Invest in networking
Networking is very important in network marketing strategies, through it you can form a good network of distributors, as long as you create and make contact.
It is necessary to talk and listen to people to know how the market works, and this is where your connections come in, which help you create a strategic plan.
So if you’re going to work with tent rentals, for example, you need to understand what people are doing and what they’re not doing that the public misses.
If you really want multi-level marketing to work, you need to work well on your networking, so put your shyness aside. This is how you will increase your network of distributors and customers, and you will be able to exchange experiences with people in your market
Identify common interests
When we trace points in common, it becomes easier to create a standard, especially in relation to the distributor network.
The leader who recruited you noticed that you had some interests in common with him, and the same thing happens to someone who is going to sell a system for a restaurant or any other type of product.
This technique is very useful because it saves you from overexerting yourself when working with people who don’t think like you.
In addition, by identifying common interests, it is also easier to work as a team. Let’s take as an example the stores and other traditional companies, where there is a distance between people due to a rigid hierarchical chain.
The professional at the top of the hierarchy and the ones at the bottom do not have the same interests. But this does not work in network marketing, it is necessary to trust your products and search for ways to sell your product fast I prefer to get some products and test them before starting a business
Conclusion
You work in a shop and you know which product is short or more selling chose your product and get into your shop in low price and sell it into some profit
The secret is knowing how to work with it, using good practices, such as those shown throughout this text.
But it is important to emphasize that this business does not happen overnight, but based on a lot of dedication and patience for it to bear fruit. Anyway, it is an excellent proposal for those who want to have their own business.
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