What is it that network marketing companies do?
Let's face it, no work-at-home scheme is more misunderstood and demonized than network marketing industry. What is network marketing companies job as a whole? In fact, at its best, network marketing is perceived as a banal mommy-business or something Uncle Frank does to find his fortune. It its worst, however, network marketing is seen as being full of greedy shysters and snake oil salesmen. However, once you get past these outdated and mostly inaccurate misconceptions, network marketing becomes one of the most viable ways to start a home-based part-time business venture. As a matter of fact, in the next decade, statistics show that network marketers will recruit more than 200m new distributors! But first, what is Network marketing?
You know how people tend to seek advice about products, services and even opportunities from friends and relatives? You've probably done it too, and mainly because you 'trusted' their advice. Well, network marketing uses the same technique. Allow me to elaborate further.
Network marketing / (MLM) multilevel marketing- is basically direct selling. Chances are you already know a thing or two about direct selling; Mary Kay, Amway, and Avon among other corporations are s few of the companies that have been in the MLM industry since the 80's. These companies basically market their product through networks of thousands of distributor independent business owners. They give people the right to do business with the use of the corporation's name and the use of an established system of doing business. It's like franchising only you don't have to pay any fees to the company.
Network marketing is a legitimate marketing technique that is based on providing people with great products that they need and want at a reasonable fair price. It is mostly ideal for products and services that require more demonstration or explanation than provided in the retail stores. Network marketing involves retailing of products, personal use of products and building and managing a sales organization.
So how do people make money from it? You see, when an independent distributor sells a product, or their recruit sells a product, he/she is compensated. They (distributors) also make money by creating their own sales organizations and receiving bonuses on the sales generated. This motivates them further to build and maintain their own networks of customers. Also, the distributors -who are not employees but rather independent contractors- act as both the company product or service, and business opportunity. Perhaps the best part about network marketing is that the income earned is always related to effort and not position; distributors can make any amount. Network marketers are also utilizing SEO optimization to drive traffic to their products and get leads
All in all, as mentioned earlier, much of network marketing is based upon the fact that most people are seeking word of mouth advice about products and or services from people who they like and who they trust. In simpler terms, network marketing allows people the chance to put 'trust' to work in a positive way to get results; a way that can improve others lives and give an every day individual a chance to create a business and income from home.