Wikipidea describes Network Marketing as a marketing structure used by some companies as part of their overall marketing strategies. The structure is designed to create a marketing and sales force by compensating promoters of company products not only for the sales they personally generate, but also for the sales of other promoters they introduce to the company, creating a downline of distributors and a hierarchy of multiple levels of compensation.
The products and company are usually marketed directly to consumers and potential business partners by means of relationship referrals and word of mouth marketing. Other names for Network Marketing are MLM, Direct Selling and Referral marketing.
The network marketing industry has been around for many years and is undoubtedly one of the most popular and legitimate industries when it comes to owning and building your own business. The industry is now a multi-billion dollar industry and has been responsible for creating many internet millionaires. However very hard work is required to be successful in the industry.
If you are looking to own your own business or looking for financial security and residual income then network marketing could be for you. Network marketing is a tried and proven system of working your way to the top and potentially earning unlimited income. You know exactly what you have to do to get where you want to be and everyone has an equal chance of getting to the top regardless of education, class, colour, age etc.
Is Network Marketing a Pyramid scheme?
Some may question if network marketing is a pyramid scheme. Robert Kiyosaki said and I agree, that the real pyramid schemes are the corporations where there is an executive at the very top then the departmental managers and then a whole lot of employees at the bottom who often do the bulk of the work and are paid the least. In a corporation it is often very difficult to get to the top, there may be a lot of politics involved and you may be limited by your educational levels. You may encounter discrimination because of gender, age, class or color which prevents you from being justly promoted. You may not be rewarded based on the work you do as it is often a salaried position which is normally fixed. This sounds more like a pyramid.
....With Network Marketing this is not the case.
Advantages of Network Marketing
- Network marketing allows you to be rewarded based on the amount of work you put in.Your income is predictable and you know what you need to do to get promoted and earn a certain income.
- Everybody starts at the bottom and can work themselves to the top.
- A good network marketing company is designed to bring you to the top and is usually more successful the more people it brings to the top.
- It is a system which provides an avenue for you to own your own business.
- You have the chance to earn unlimited residual income.
- There is no limit to growth.
- You can leverage and by that I mean you can train others to work for you.
- It usually cost you much less to get started in a network marketing company than to start your own business.
- It provides an alternative to job security in the form of financial freedom which a lot of persons are looking for today.
- It has always been around and will always be around. In fact it is a growing trend.
- Most Network Marketing companies will invest the time in your education, personal development and building your own business.
With all the positives discussed above it is important to note that it will take very hard work and dedication to succeed in this industry. Only those persons who truly understand the business they are involved in and are dedicated and committed will achieve success.
Characteristics of a good Network Marketing company
1. The company has a good reputation.
Look for a reputable company that is solid and professional. Seek out a company with a proven track record of integrity and do your proper research before getting involved.
5. The company has strong experienced leadership.
6. Full disclosure about the company's ownership, financial strength, mission, ethics, value and products are readily available.
Look for those companies with cutting edge technology that makes it easy for members to follow, recruit, train, and sell products and services.
7. The best Network Marketing companies provide its members with a straight forward system that can be duplicated.
8. The company takes pride in HELPING it's members succeed.
Good Network Marketing companies focus on training their members about the company, their products and how to help other people achieve their goals.
Characteristics of a good Network Marketing company
1. The company has a good reputation.
Look for a reputable company that is solid and professional. Seek out a company with a proven track record of integrity and do your proper research before getting involved.
2.They provide well formulated training and mentorship programs for members.
A company will only be as successful as it's members and a good network marketing compnay realizes this. Outstanding support and guidance from leaders and a well formulated training program is essential to the success of the members and ultimately the company.
A company will only be as successful as it's members and a good network marketing compnay realizes this. Outstanding support and guidance from leaders and a well formulated training program is essential to the success of the members and ultimately the company.
3.The Products and Services are excellent so that members take great pride in using them and recommending the said products to others, therefore the following criteria must be satisfied.
The products must: Be Relevant, Consumable, Meet the needs of their members, Be of high quality,Be of High value to ensure continuous usage that is necessary for the member to keep on earning income,Be fairly priced,Replenishable which allows repeat business, Have a growing demand.
4. The Commission System is equitable and transparent.
The commission system in place must be fair,transparent,consistent and equitable.It must be structured so that members can earn higher commissions as the products are used. Residual income is one of the main reasons people get involved with a Network Marketing Company.
4. The Commission System is equitable and transparent.
The commission system in place must be fair,transparent,consistent and equitable.It must be structured so that members can earn higher commissions as the products are used. Residual income is one of the main reasons people get involved with a Network Marketing Company.
5. The company has strong experienced leadership.
6. Full disclosure about the company's ownership, financial strength, mission, ethics, value and products are readily available.
Look for those companies with cutting edge technology that makes it easy for members to follow, recruit, train, and sell products and services.
7. The best Network Marketing companies provide its members with a straight forward system that can be duplicated.
8. The company takes pride in HELPING it's members succeed.
Good Network Marketing companies focus on training their members about the company, their products and how to help other people achieve their goals.
