Network marketing is a type of business opportunity that is very popular with people looking for part-time, flexible businesses.
It allows you to be your own boss and grow your business around your other commitments.
Joining a network marketing company means the majority of the initial business steps have already been done for you!
For example, a brand reputation has already been built, and training is usually provided as well as the marketing materials.
Additionally, it is an inviting business model for people who want to launch their own business but don’t want to start at the very beginning.
In this article, we will discuss all aspects associated with network marketing and explain how it works.
Sit back, grab a cup of tea and be prepared to explore the networking marketing world.
What is Network Marketing?
Network marketing, also known as Multi-Level Marketing (MLM), is a business model based on direct sales.
Network marketing opportunities are commission-based, meaning there is no limit to how much money you can earn.
Networking marketing programs usually have a low-start up investment (this tends to be the cost of purchasing the product starter kit or initial supplies), so it is ideal for people who do not want to invest huge amounts in a startup.
Network Marketing benefits
Here are 7 benefits of getting involved with this type of business opportunity.
The main benefit and the most significant incentive is the flexibility offered by working as much or little as you like.
- Flexible work schedule
- Company recognition and bonus perks
- Opportunities to leverage the recruits’ productivity
- Low startup costs
- Commission-based and unlimited income
- High-quality products with huge market demand
- Residual income
How to make money with Network Marketing
There are 2 key ways to make money with network marketing:
Sell the product
This is pretty self-explanatory, but the primary way to make money with Network Marketing is actually selling the product!
The key is to learn the right strategies and have a marketing plan!
It is always recommended that you find a company or product that you are proud to market, and it is something that you would recommend anyway and are knowledgeable about.
Using the products yourself means it will be easier to sell to others, as you can talk from your own experience. It also shows that you believe in the product you are selling.
Above all, build relationships, create trust and turn your followers into true fans.
Recruiting new partners
Recruiting new partners, otherwise known as ‘recruiting your downline’, is another way to make money with Network Marketing.
You can make money from recruiting others due to the extra commission you will receive on each sale your recruit makes. As you can imagine, this soon adds up!
Several strategies can be used in finding new partners for your network.
But, the most important is to build trust and a relationship with your future downline.
Using social media can be an effective way of building your downline and showcasing your business opportunity to others.
You can promote your business online or offline. However, it is vital to have good communication channels between everyone involved.
In simple terms, your upline is the person who brought you into the company.
Uplines usually provide training, guidance and support to their downline.
If you recruit someone to the network marketing company, they become part of your downline. A downline contributes to the upline’s income.
Ideally, both uplines and downlines must work together and collaborate to ensure you have a successful network marketing business.
Is Network Marketing a Pyramid Scheme?
First, let us talk about a pyramid scheme.
A pyramid scheme is considered an illegal business model as its main objective is to recruit as many people as possible to become involved in the scheme.
Pyramid schemes often require interested individuals to make a large payment before they can start recruiting other members.
Following this payment, the organisation guarantees that for every new member they then manage to persuade to join, they will receive a percentage of the money they have to pay to enable them to start recruiting.
And, so it goes on.
Product selling is NOT the main focus of a pyramid scheme.
Usually, the only way to earn is by recruiting more people without even selling any products to consumers.
It is important to understand that some pyramid schemes are disguised as a network marketing opportunity. So, with that in mind, it is essential to be mindful of this if you want to be a part of this industry.
The main purpose of a legitimate network marketing company is to sell products and recruit a downline as a secondary. The main purpose of a pyramid scheme is to recruit more people and sell products as a secondary.
If you are interested in getting involved with Networking Marketing, the best thing to do is thoroughly research the company beforehand. Additionally, discuss and talk with experienced and knowledgeable people in the network marketing field.
Does Network Marketing work as a business?
There is no doubt that network marketing is a legitimate business opportunity and a great way to make money!.
The myths and misunderstandings about networking marketing have resulted in people’s negative impressions.
There are many genuine network marketing and MLM companies out there, but it is crucial to stay away from pyramid schemes and networking scams.
We would always recommend finding a company with a product you are interested in and proud to market.
Key skills you need as a Network Marketer
Good communication and interpersonal skills are the main requirements of a network marketer. If you have these, you can be sure to make your networking marketing venture a success.
Other useful skills include:
- Strong presentation skills
- Good relationship builder
- Planning and time management skills
9 Tips for being successful with Network Marketing
Here are 9 top tips for how you can be successful with networking marketing.
- Set a specific goal and be consistent
- Promote your product online and offline
- Know your target market
- Learn marketing skills to increase your sales
- Be genuine and honest
- Surround yourself with successful leaders and distributors
- Invite at least two people everyday and discuss business opportunities with them
- Think of marketing tactics that can make you stand out and make you unique.
- Be teachable and accept constructive criticisms
Check out our other blog on Network Marketing here or drop us a message below and one of our team will be in touch to share their experience in the Network Marketing world.
For more information, contact us here.