What is Network Marketing? Getting the Facts For Once
What is network marketing? Many people have different perceptions on network marketing. Some consider it as an intelligent scam, some who have been successful in this business believed it to be the best path to financial success. So which is which? How is this business really done?
Network marketing is a business type where the companies or manufacturers sell their products to the consumer through independent distributors. In this process, the distributor acts as marketer and retailer who directly transacts with the customers. This way, the distributors earn by selling the products themselves plus gaining commissions for every sale of the distributor you introduce to the group.
What Makes Network Marketing Better than Traditional Businesses?
- Most people are drawn on network marketing because of its low start up cost. In usual cases $100-$500 is enough capital since it can cover the shipping cost of the startup products.
- Network marketing business’ are easy to manage in nature. Since you will be under the network of a big marketing company, you don’t need to worry about handling the business on your own. These established businesses have built solid marketing strategies that have been proven effective through the years.
- Network marketing is also known for quick career promotion. Truly in network marketing, any person can be promoted to higher positions. Proofs are the success testimonials you see on TV, social media and print media of successful distributors who now have a satisfying career.
- Personality and business skill enhancement. Network marketing can also be an effective training ground for beginners in the business world. Also, since network marketing involves daily interaction with people, personality development of distributors is greatly improved too.
- Double return of investment. Another reason why people are drawn to network marketing is the potential triple or quadruple return of investment. As you influence more people to become distributor, you create a bigger team and a more stable residual commission in every sale they bagged.
What is Network Marketing? Some Common Misconceptions
Not all distributors enjoy the same success story. This is why many criticisms have been thrown at network marketing since it became successful years ago. Some of the known criticisms are:
1.) Misconception of pyramid scheme. Since other schemes such as pyramid and ponzi became notorious for fooling distributors, people automatically relate it to network marketing. In a ponzi, the products usually don’t reach the consumer which is why the distributor that started the network will have to pay each other with the funds from their own pockets. Legitimate network marketing make sure that product profits are the source of income of the distributors.
2.) Network marketing programs are all scams. There are several reported cases of companies not delivering the products after shipping cost are paid. This is where wise judgment comes in. When joining network marketing, make sure to research about the company including their contact information and sales association first before making decisions.
Understanding what is network marketing is essential for people interested to become distributors. Don’t jump at the slightest opportunity to earn. Make sure to know what you’re getting into. Remember that information is the best tool in making smart business decisions.
What is easier than network marketing?
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Filed under: Marketing
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