The concept of Network Marketing might be familiar to you. However, my whole purpose is to provide you with a deep understanding of Network Marketing and clearing those doubts that stop you from achieving a grand success. I will provide you with some crucial and decisive points that will enhance your vision and comprehension in network marketing, so that when you meet someone, you will be able make him understand the power and scope of Network Marketing business.
What is Network Marketing?
Let’s understand and explore comprehensively what Network Marketing is all about?
#1. The Marketing Strategy through which a company promotes it’s products and services directly to the common people in a fast and effective way, is called Network Marketing.
In comparison to the Traditional Marketing, where the customer gets products of his need through a chain of middlemen (Like Retailer, Wholesaler, Distributor) whereas in the Network Marketing system a customer/consumer gets the products of his need directly from the company bypassing the middlemen through company’s own Distribution Stores. That’s why this system of marketing also referred as Direct Selling.
Benefits to the Company:
There are several benefits to the company on comprehensively adopting this marketing strategy:
(a). The company saves a huge amount of their advertising and marketing budget that they had to spend otherwise.
(b). When a distributor works in a Network Marketing Company, he brings sales to the company first and the company pays the commission to the distributor. It’s a great advantage for the company as it receives the income first pays later.
Let’s take an example of Apple. The company has to invest millions first on advertising and promoting their products in the world market. The sale of products gets underway later on. It shows Apple receives the sales and profit amount after investing millions of dollars first. However, in Network Marketing, the seen is just opposite.
In Network Marketing, although, the company is saving a huge amount on their expenses, there is win-win situation for the company as well as the distributor.
Benefits to the Distributors:
The distributors receive multiple benefits as below:
a. The distributor gets an opportunity to promote and sale the products/services that are already tested and proven.
b. The distributors can start and expand own network business at a very low investment. Comparatively, in other businesses, they need to maintain the inventory, infrastructure, pay salaries to employees and so on.
c. The distributors can earn lots of Passive Income once they are able to build a strong network along with working on a systematic structure. Everyone in the network will receive income forever.
d. The distributors can enjoy the multiplied growth in overall sales and revenue and obviously their income also keeps multiplying accordingly. This happens only in Network Marketing compared to any other business in the world.
#2. In the Network Marketing business a distributor has to recruit the distributors and train them on how to recruit other distributors. This business is totally based on Recruitment and Training.
#3. It practically creates a Snowball Effect. In your childhood, you must have seen and observed in cartoons, how a small piece of snow rolls down from a mountain and gets bigger and bigger and it’s speed faster and faster as it keeps rolling down. The network marketing releases a similar kind of effect. You start this business alone as a small piece of snow, however, gradually your team builds on and eventually due to the snowball effect, it grows and transforms into a huge shape.
#4. This business formidably works on a technique called “Leveraging”. Leveraging people to work with you and break the limit of 24-hour circle. The best thing you do here is, leveraging your weakness. You leverage what you don’t have. You can recruit a mature and comparatively experienced person than you even if you are young and less experienced. You can recruit someone who has excellent presentation skills even if you are not able to present well. You don’t need to pay them monthly to work for you, instead, they will work for their dreams but you will also get paid. What more one can ask for?
#5. This Business can potentially drive an Exponential Growth. It might be possible that initially you have to strain your every nerve and battle hard to make things work in your favour, but remember gradually you will enthusiastically come across transformation in your life, exponential growth in income and a huge boom in your team building. To turn things in your favour you need to put that kind of efforts consistently.
#6. This business follows an “N Graph”. In the beginning you need to put your 100% effort and you will receive almost No income but gradually your efforts get decreasing and the income increases. Ultimately you need to put 0% of effort and you will receive 100% income.
Now, you have got the fundamental understanding of ‘Network Marketing’. This is the most powerful business indeed! Now, you know it, so share it to the world!
You may click the link to know the Myths and the reality of the Network Marketing Industry.