Network marketing is a popular word being used in conjunction with work at home and internet sales
. What does network marketing actually mean?
It refers to multi-level marketing (MLM) or referral marketing, a method of selling products that hinges on building a large group of people who work as independent sales associates. Each associate receives compensation not only for his own sales but also for those he introduced to the company and sometimes even the recruits of his recruits.
For example, if a new member makes a sale, he gets back a portion of the sale as a commission. In addition, the associate who recruited the new member into the company will receive a commission. Often, the other people directly above the associate in the company hierarchy (such as the person who recruited the associate) will also receive a smaller commission.
Conversely, a network marketing associate will get a commission from his recruits' sales as well as the people below his recruit or those people that his recruit introduced to the company.
This sales strategy is used by many companies online and can be very lucrative for those who are very active in finding other people to join the network and make sales.
Sales are made directly to the consumer instead either personally or through an individualized online store, if the company uses internet network marketing. Internet sales are done through each associate's unique website URL or through referral links. Customers visit the associate's online store to order products or get in touch with the associate who orders the products online.
Starting out in an MLM company is very easy as recruitment is constant and intense on all levels. However, sustaining activity levels can be a problem if the newly recruited sales associates are not given the proper encouragement and support. This constant support and encoragement is needed until the new recruited sales associates can stand on their own.
Successful sales networks are those wherein the members form bonds or relationships with each other. Since associates do not receive a salary but instead a commission based on their sales and their recruits' sales, it is vital that they be properly trained on sales techniques or they will quickly leave the company.
Those who are industrious and love to work with people can easily master the techniques of network marketing. The key to success is to help others. And by helping others you will attain your own success.