In most recent years, people have seen network marketing as a pestering marketing model designed to annoy friends and families worldwide. While all that may be true, it truly depends on the strategy and approach given to the individuals business.
But no matter the kind of negative perception people have about the network marketing business model. The point remains that it’s still the most legitimate business model a new entrepreneur can find anywhere in the world.
You can’t judge a business model from the few people that have failed using its strategy. Rather, go a step above the average failure and meet with the successful ones who are usually excited to share their testimonials.
While some people believe that network marketing is the best business model for new entrepreneurs. Others think the business models is a pyramid scheme which is used to exploit marketers.
Well, this article is designed to look into the Network Marketing scene, analyze its relevance, and also discuss the challenges and possible remedies associated with this business model.
What is Network Marketing?
A network marketing business model is a marketing system designed by marketers to motivate the sale capacity of their marketers. Giving them a reason to strive to get more sales and leads for their business.
The network marketing system is also referred to as Referral Marketing, or Pyramid selling because of its pyramidal structure. Revenues are derived from the sale of a company’s product or services while the marketers earn through a pyramid-shaped commission system. This system is designed to reward the hard work of the marketers as they convert leads into customers.
Companies that practice this model are often called Multi-level Marketing (MLM) companies. The companies are the ones that dictate the monetary compensation and payout for each marketer in their program. Marketers within MLM companies are expected to sell these products directly to the end-users through either referrals or word of mouth advertising.
This network marketing strategy also implies that incentives should be given to marketers for each referral. As new people are introduced to the business. It improves the chances of success for the network marketing company, and it helps it to grow.
The reason behind the negative perception of network marketing is lack of information: prospective marketers are advised to first undergo a network marketing training before they can join the term of MLM marketers, which is why we advise you check out the member’s area of Wifi Entrepreneur platform to get more effective information about what you need to know before joining the network marketing community.
You have to also remember that there are thousands (if not millions) oh successful network marketers out there who have really made it big in that niche, their secrets are not far-fetched, or impossible to get your hands on. They have equipped themselves with the perfect network marketing tools that enable them to strive. Such knowledge is what we recommend any interested individual to acquire for themselves in order to get ready for the next phase of network marketing.
Things you Need to Understand About Network Marketing
First, if you are still harboring that popular mindset that the network marketing system is a pot of gold, then you are already dead on arrival.
To make it in this industry, you first have to recognize with the rest of the community, that the way to success requires you to interact with those that have been there for years and have made some considerable success in the field.
And to do that, we would like to recommend the WiFi Entrepreneur Free Online community for advice and useful information on how to be a better network marketer.
Also, you have to understand that network marketing is all about giving leverage.
For every success, there are some levels of sacrifices that have to be given. So if you want to make it in this niche. You will at minimum need to sacrifice your time for that success.
Secondly, you will need to put more effort into building your down line. This will help increase your profit based on their efforts, rather than promoting the network marketing products itself.
According to J. Paul Getty, a man who is said to have created the world’s greatest wealth once said:
“I’d rather 1% of the effort of 100 men than 100% of my own efforts”.
So, with this statement, it helps shed light on the effectiveness of the above-stated strategy.
There is nobility in helping other people grow, it is also profitable.
Using the network marketing business model, one can maintain good health while also building a business. You also don’t have to work all day in order to be successful. Working a few hours a week is enough to be successful in this industry.
As far as your team… encourage them, share with them valuable information that will help them push ahead, share inspirational stories based on your experience and guide them through every step.
Doing this will help duplicate your success, and as the process builds up you indirectly create a compound achievement that has the ability to attract hundreds of people joining the business, courtesy of your early efforts. But mind you, this can consume a lot of time in the beginning, but, it is worth trying because at the end of the day it will obviously pay off.
What you Need to Start a Network Marketing Business
Though you don’t need a lot of capital to start off in network marketing, you do need some capital to get off to a fast start. The good part is, there won’t be many limiting factors like geography, minimum quotas, or any form of special education or skills required to get you started.
As long as you are a rational thinking human being, all you need is preliminary information on how the business works, then you are good to go. Another good thing about the network marketing business model is that you won’t be responsible for many government tax liabilities, because the network marketing business model acts as a P2P business. Meaning you deal with people directly. This is a kind of business that can open your eyes to new things, can help you meet new people and learn new things.
Inside our free online training center, we share more network marketing secrets we just discovered to help accelerate the growth and duplication of your down line.