If you’re wondering what network marketing is you might be like a lot of people today. Interested in a home based business opportunity.
Simply put, network marketing is a business model in which a company uses independent representatives to reach customers.
What network marketing is NOT:
Network marketing is not some fly by night, get rich quick, pyramid, mlm,
ponzi scam.
First of all network marketing has been around for years. In the beginning times were tough and network marketing got a bad rap. As in many businesses there a few bad apples, but network marketing has weathered tough scrutiny and criticism, and is still a successful business model that’s endorsed by business moguls like Warren Buffet, Donald Trump, Robert Kiyosaki, and is now even being taught in colleges.
People accuse it of being a “pyramid scam” or “mlm”. Most network marketing companies do use the pyramid structure, along with most large organizations. The president or ceo is at the top, followed by the managers, directors, and sales force.
Network marketing is an mlm or multi-level-marketing. That is just another name for the company’s pay structure. In a traditional sales organization, sales people get commissions, the sales managers get overrides and bonuses on their team, and the directors get paid on top of that, and so on.
You have to pay to get started. This is a standard franchise model and actually, the start-up fees for a network marketing home business opportunity is miniscule compared to a franchise fee for a sandwich or coffee shop or any other traditional franchise fee.
To understand how network marketing works think about a franchise. A franchise is a business model in which someone can buy the rights to another business successful business model.
For example, if you decided that you wanted to open up a Dunkin Donuts. You would pay Dunkin Donuts Corporation a franchise fee for the right to do business using their company’s products and name. Dunkin Donuts would then provide you the coffee, training, advertising and marketing. etc.
This is great for a business owner because there is an established brand and proven successful track record as opposed to starting a business from the ground up. The drawback is that traditional franchise fees can can be expensive and this can be an obstacle for someone looking for a low-cost start-up.
Network Marketing is a mini-franchise
A network marketing company uses independent representatives to reach potential customers.
The company provides the products, services and the name while the independent representative markets these products and services to customers of their own.
What makes network marketing so attractive is that independent business owners can sell products and services to retail customers.
What makes it so exciting is that business owners can also build a huge business by helping other people set up their own businesses too!
In network marketing world, this is called sponsoring and this allows the business owner to profit from what he sells and profit from the sales of people that he has sponsored.
Network marketing did over 100 billion dollars in sales last year and over 68% of US households have bought a product or service from and independent distributor. Network marketing had been described as the “most powerful way to reach a consumer.”
Whether you realize it or not you’re already in the network marketing industry. What do you do when you buy a new cell phone or see a great movie? You tell your friends!
Now imagine if you were paid a commission every-time someone you told went to the same movie or bought the same phone? You’d tell more people, right?
The beauty of network marketing is that ordinary people like you and I can create a full-time income from home.
