Network marketing simplified
Network Marketing Simplified
Today, we are going to dwelve into the subject of a business many Ghanaians are yet to embrace, ''Network Marketing''. Well I use Ghana as an example because that's where I live, but regardless, today's discussion can be relative.
Network marketing as defined by ''entrepreneur.com'', is, ''a business model in which a distributor network is needed to build the business''.
Such business usually are also multi-level marketing (M.L.M) in nature, in that payouts occur at more than one level. Multi-level marketing, or MLM is a form of direct sales ''home business'' in which independent representatives sell goods and services from a company to an end consumer or customer. The multi-level aspect refers to each representative's ability to recruit and train other representatives and earn a commission on their reps sales.
Income earned in MLM comes from the commission earned on personal sales, as well as a percentage of the sales earned by other reps recruited by you.
So one can actually say, network marketing and MLM go hand in hand, one cannot make mention of one, without involving the other, both revolve around the law of leverage (duplication of your time and efforts through partnership).
But before we probe deeper into the gains and downsides of network marketing, below are MLM terms for you to know to make our discusssion clearer:
source:thebalancesmb.com
*PLAN: Most MLM reps refer to their program as ''the plan'' which outlines the mode of payment, their marketing and compensation plan.
*SPONSOR: The sponsor is the rep who directly recruits another person into the business. For example, MLM member A recruits member B. Member A is the sponsor and is responsible for training or coaching member B.
*UPLINE: The upline consists of the representative sponsors who came in before you did.
WHY YOU SHOULD CONSIDER NETWORK MARKETING
1. Unique and quality products: One distinct feature of M.L.M business is the distribution of top notch products like dietary supplements, skin care and health products among others. And as quoted earlier in the definition of M.L.M, it involves distribution, commission, profit and discount. And as long as you are a registered marketer, member or distributor with any company you are entitled to a discounted price of products for a lifetime.
2. Network marketing products aren't advertised on T.V or displayed in regular or traditional retail shops. Products are sold only M.L.M business offices. This distinct feature of M.L.M products is what sets it apart from ordinary products. This feature makes these products less susceptible to counterfeit products or imitation, thereby preserving its good quality and uniqueness.
3. Lifetime discounts for distributors and the opportunity to resell products at a retail price for profit: This is in the case where, the M.L.M company in question also deal in consumable goods and not just member recruitment and offering services, but does the job of recruiting and producing goods.
4. As a distributor, one is also compelled to also buy products once in a while from the said M.L.M company, where there are consumable products involved. This move helps in self-advertisement and promotion, and is also an act of investing in your own business, since you are actually paid back or rewarded for the products you purchase and also your efforts. Here's the scenario, how can you market something you haven't used before? So there you have it.
5. Engaging in M.L.M business is also less time-consuming: Unlike the regular businesses or jobs, where you have to wake up at dawn to catch the first bus or cab to work. In this business, you work at your own speed and convenience.
6. You have no boss to report to, you work as a team, and also learn from your up lines and sponsors who train you to make money.
7. There's always an assurance of residual income: Refferal bonus or commission is constant with network marketing. Once you are a registered member of any M.L.M business, you know your refferal bonus or commission is a must, whenever you invite or recruit someone into the business or make any transaction.
7. There's always an assurance of residual income: Refferal bonus or commission is constant with network marketing. Once you are a registered member of any M.L.M business, you know your refferal bonus or commission is a must, whenever you invite or recruit someone into the business or make any transaction.
8. Another aspect of M.L.M business that many fail to see, is the ''investment'' and ''insurance'' bit: In the early stages of joining an M.L.M business, when you are yet to introduce or recruit more partners, one tends to give up, because he or she wants instant profit and so backs down after just two months of not seeing anything. One thing to note is that, you shouldn't look to earn profit immediately after registering, see that phase of your career you've chosen, as an insurance and investment that will eventually pay off in future.
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