Network Marketing Explained

Network Marketing Explained

Network Marketing Explained

Network Marketing 101

Did you know that Network marketing has become widely popular in the past few years, promising people with a monthly income of at least a few hundred dollars each week, without having to quit their current jobs. It's a new concept in the information age, and more and more are joining the bandwagon. All you really need is a good working computer and little or zero start up cost. Here are some more tips on how you can maximize the opportunity.

About Network Marketing

Network marketing is also called MLM or multi-level marketing. This is a new marketing strategy, wherein the sales force will be given compensation for a variety of procedures. They can make money through sales of available products, recruitment of more members into the company and through their downline or the people under them as they move through various levels of incentives or compensation. The concept is also known as referral marketing or direct selling. Even though the products offered by an existing company is primarily marketed straight to consumers, you can also continue to advertise and build partners in the business through adds, referrals and word of mouth.

Subject of Criticism

Network marketing follows a variety of schemes or compensation plans. You will find binary schemes, pyramid schemes and several others that follow a certain pattern on how the members can continue earning income. A lot of these companies have become subjects of criticism, due to the large number of fly-by-night companies that promise so much with zero returns. Some people have lost thousands of dollars investing in MLM companies that do not exist or by investing in unscrupulous agents and members with no real schemes or products. Others complain that the only people earning are those who were first in the scheme and individuals who are at the top of the pyramid. Overall, one should carefully understand the pattern first and find out about the history and background of the company before they invest.

About the Setup

Salespeople or affiliates of an MLM company are also called distributors, IBOs or independent business owners, franchise owners, consultants, investors, associates or affiliates. They represent the company and the products that they sell. As soon as you become a member, you will be given a position and all the needed materials and tools to start representing and selling the available products. It is truly a business in a box with all the heavy lifting done for you. It's a business opportunity that allows you to work from home part time. As a member, you will also be given training materials and possibly a back office where you can continually check your account and determine your status in the existing scheme. You can get the products at wholesale prices, so that you can retail these at a handsome profit.

Roles of the Marketer

As a network marketing associate, your role will revolve around bringing in more people into the network, selling the available products and finding new business partners who will also help expand your network over time. You can choose to work over the internet only, although there are also many who personally approach potential clients to quickly grow their business. It is also important that you update yourself with the recent trends and developments in the business so you stay ahead of other competitors and understand the changes that are happening around you.

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