Are you interested in network marketing and a little curious about the industry? Or are you thinking about joining a business soon? Before you make a decision, let’s cover a bit of the basics and thoroughly define what network marketing really is.
Network marketing, also known as Multi-Level Marketing (MLM), is a legitimate business model whose method of selling is by distributing a company’s products and services through a network of independent distributors.
These independent distributors use direct selling and network building to market the products and services to potential customers. They act as a franchise to the company and earn commissions based on the volume of merchandise sold, or equivalent to its point value, as a result of their group dynamics.
In effect, the networking company provides marketing tools to its distributors to help them promote the business and reach their maximum potential. Aside from this, the company also offers personal development orientations, business opportunity meetings, marketing and sales training, and leadership guidance to new and existing members.
The multi-level marketing company’s ultimate goal is to procure outstanding sales and gain a loyal customer base. Instead of using the traditional method and spending on costly advertising, they promote the business through word-of-mouth referrals.
They bypass the middlemen and sell the products directly to consumers. This direct method, in turn, helps customers save more money by eliminating mark-ups on the products.
By using the network marketing model, they stay ahead of the competition against their traditional counterparts. Not only do they level the playing field by allowing small businesses the same opportunities which their competing large corporations enjoy, they also build valuable relationships directly with their customers which generates customer satisfaction and a loyal following.
Some companies even let their products speak for themselves by developing excellent quality and highly effective product performance. They allow prospects to taste their products, asking for feedback, ideas, and suggestions on how to improve the products.
Satisfied customers will then provide testimonials to convey the benefits and advantages of using the merchandise. These testimonials will now be used by the companies as their promotional tools.
What makes this business model a highly popular choice by many is that it offers a virtually limitless potential that cannot be seen in any other traditional business. Independent distributors enjoy numerous benefits by operating their own “franchise.”
Not only do they get to retail the products and services to consumers, they also get to expand their businesses by encouraging others to do the same.
But perhaps the most appealing factor in venturing into network marketing is that in return for a low risk investment, distributors get a chance to take home a most-coveted residual flow of income.
At the same time, they take pleasure in time freedom and an improved quality of life. They can work whenever they prefer and decide on how much effort they are going to put into the business to make the income that they desire.