What is “Network Marketing?” do you know exact mean of Network Marketing?
Don’t worry, in this blog, you will know what is Network Marketing and How does it work.
Before this, I want to tell you that it is one of the biggest reasons for the success of big companies and corporations, banks, and other businesses.
I know you have many misconceptions and myths regarding this, your all queries will be cleared in this blog.
Network marketing also called Multi-Level Marketing (MLM), Referral Marketing, and Pyramid Marketing.
Definition of Network Marketing
“Network marketing is a business where a product is sold through non-salaried people, and people create a network of people or salesperson where they sell products or services by reference, and they earn through commissions on that product That they sell”
As mentioned product or service sold through non-salaried people, these criteria depend upon company to company.
Maximum MLM companies sells their product through non-salaried people.
All you have to do is create the network, advertise the product, sell the product, and earn a commission.
Many fraud companies misuse the name of network marketing and they cheat many people, Because of this people are afraid of doing this.
It is not fraud, it is one of the biggest and best marketing methods, we will know in this blog.
Here you will get information about “network marketing”, which has been researched online,
So it is your decision whether you want to do it or not.
What is Network Marketing or MLM?
As said earlier it is the
“business where a product is sold through non-salaried people, and people create a network of people or salesperson where they sell products or services by reference, and they earn through commissions on that product That they sell”
It is totally based on direct selling which means company sell products directly to the customers.
They do not use any distributor, retailer, wholesaler, etc. in between the company and the customer,
The product is directly sold to the customer through the MLM participant.
Keep one thing in your mind if you want to join Network Marketing, you should have high energy, enthusiasm, and Strong sales technique.
Without this you can join but you can’t earn money through products.
You have to add more and more consumers so you can sell more products, you can add your family members, friends, colleagues, etc.
Convincing them would be a very difficult task for you, in the end, it depends upon your communication and sales skills.
You can be successful in MLM if you have communication and sales techniques.
The participants in this also called IBO (Independent Business Owners) they promote products like their own business.
Types of Network Marketing
- Single Tier Marketing
- Two Tier Marketing
- Multi-Level Marketing
1. Single Tier Marketing
In this model, you have to join the company’s affiliate marketing program.
You don’t have to recruit salespeople, in simple words you don’t have to create a network.
You earn money through the product you advertise.
Your earning is limited, as you earn commission only when you sell the product.
2. Two Tier Marketing
In this you have to build network, you have to recruit people to work under you.
In this model you earn commission on direct sales, and you also earn some part of commission from people you hired to work under you.
3. Multi-Level Marketing or Network Marketing
In this model you have to recruit salespeople to sell the product.
You build network so you can more and more commission from sales done by your salespeople.
You can add many people to earn more money.
How Network Marketing Works?
Companies that follow the network marketing model focuses on increase the number of salespersons.
A person with good communication skills and strong sales techniques are the first priority of this program.
Companies build the level of salespeople, with the company asking them to build a network of people to sell more products.
The salesperson creates his own network to sell the product, in which he earn commission from his sale.
as well as he earns commission from his network where other salespeople sell products.
The more he adds people to his network, the more products are sold, and the more commissions he earns.
For example, Person ‘A’ Joined company X, and he sells products and earns a commission. ‘A‘ added ‘B‘ in his network, A earn commission from the product he sale, as well as he earns a commission when ‘B’ sales product, so to earn more commission ‘B’ added ‘C’, and this network keeps goes on.
This is the exact Hierarchy for Network Marketing or Multi-Level Marketing.
The Philosophy behind network marketing
Network marketing is a type of business opportunity that is very popular with people looking for a part-time job.
Many more MLM (Multi level Marketing) Companies are there.
You have to create network for marketing, so company can sell the product and you can earn the commission.
The main motive of this model is to promote and sell products through salespeople with minimum investment.
This model saves advertising costs, so it is beneficial for companies and MLM participant are non-salaried, so it saves Salary cost as well.
More participant, more product sale and participants earn commission through it.
As we know this model fully depends on network, and this network many times consist of friends, family, office workers it means these people know each other.
It means the reference for any product from known people has maximum chances to be sold.
So this philosophy increase sales, and in result increase in commission.
Benefits of MLM for Participants
MLM participants have double benefits, which means when they buy products from the company they get discounts and many beneficial offers.
Also they earn commission from the product they sell, as well as from network.
Many other benefits are there you get when you enter in Network Marketing or MLM (Multi-level Marketing).
Advantages and disadvantages of network marketing
Every model has its own advantages and disadvantages, Network marketing also has its advantages and disadvantages.
The pyramid schemes of network marketing are not liked as a part of this model, higher-level salespeople earn more money than lower-level salespeople.
Some company asks money to join their program, many people believe that giving money first is a sign of fraud.
Creating network is difficult task, you should have better communication and sales skills.
Single Tier Marketing is more beneficial than other two marketing types, according to many network marketing people.
Tips for Network Marketing
- First of all Choose the Company wisely.
- Stay away from Fraud Companies.
- Learn Communication and Sales Techniques
- After joining focus on Understanding the Model
- Recruit Right and Intelligent Salespeople.
- Maintain Good Relationship with Your Salespeople.
- Earn more and more.
There are other companies that take money from you first in the name of network marketing and ask you to make network and take money from them, then you will get benefit, so don’t get caught in all these things.
Join the company only after knowing full information the company.
I hope you like What is Network Marketing Blog and you got the information which you looking for.
Did we miss any point to cover? or every point covered in this blog, just tell me in the comment.
if you have any queries or suggestion then Contact us, and share this blog with your friends.
MR. INDRA NISHAD
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