Essentials of Network Marketing
Surely by now you've heard of network marketing and its promises
to generate for you an unlimited income from the luxury of your
own home without the stress of a fixed workday schedule. You
might wonder what magic this network marketing is. It's really
quite simple, and when successful, you really can makes lots of
money. Of course, it's not as easy as the ads make it to be.
Some manufacturers use another route to sell their products
other than the standard
manufacturer-warehouse-wholesaler-retailer-customer path. This
alternative route is known as network marketing. You buy the
products from someone who is already a member of a network
marketing company. He recruits you and becomes your sponsor.
You, in turn, will be selling products too. Upon joining the
network, you will become a part of your sponsor's downline,
which just means all of his recruits and his recruits' recruits
(and so on).Your sponsor benefits from his downline because he
will get a small percentage of profit for every item sold by
every member. However, aside from selling, you are also expected
to get recruits and create your own downline.
The bigger your downline is, the better chances for you to earn
big. Suppose you recruit ten people, and each one of them
recruits another ten. You'll get a hundred people already at
just the second level. If all these members are active sellers
and recruiters then you'll have around more than a thousand
people from which you can get profit from.
There's monetary investment involved in network marketing. Some
ask for membership fees, while most require you to buy a set of
all the products offered upon joining. Either way, it's still
money out of your pocket. If you're willing to risk joining a
startup company, you will not be dealing with sponsors because
you'll be a pioneer member. If the company becomes successful,
you'll have more members in your downline than you've ever
dreamed of, and if all of them do their job well, maybe you can
afford to sit back and wait while the money goes straight to
your pocket, and not out of, for a change.
If you're not comfortable with risking your money, you can join
an established network company. The downside of this is that you
may have a harder time getting recruits because many people are
already members. Of course, you can choose not to build a
downline and just sell the products, but you'll be alone in
working. You only earn form what you sold. In network marketing,
your downline will work with and for you. You earn not only from
what you sold but also from what your members sold.
Be reminded that in reality, recruiting people can be difficult
in the first place, let alone keeping those already recruited
interested enough to be active. You must use all your salesman
skills when joining a network marketing company.
If you want to try out network marketing, here are some tips to
remember:
1.) As a member, you will get big discounts on the products the
company is selling. Join one whose products you can use and love.
2.) Choose a company that focuses on the quality of their
products, not on the networking, which should be secondary.
3.) When choosing a sponsor, make sure that he is efficient. He
should be able to answer your questions. He should also treat
his immediate recruits as a team. He should be a good motivator
so you won't get bored or frustrated.
4.) Find out exactly where your money is going.
5.) Gather all information you can on the company you've chosen.
If you're looking for get-rich-quick schemes, forget about
networking. This will entail work, both in selling and getting
recruits. There are also marketing scams which you have to watch
out for. Some companies only want your initial investment.
Others are focused on recruitment and not on the products. When
the products aren't good, no one will buy them, and as a
consequence, you and your downline will not earn anything. In
the end, it still boils down to working for the money.