What Is Network Marketing And Is It For Everyone?
Network marketing has become the new buzzword in the business world. The concept has existed since well over a century now, but it is only now that people are realizing the full potential of this activity. In addition, the great amount of money that comes in with relatively little efforts is something that simply cannot be denied. The advent of the Internet has definitely made network marketing much easier and today people like Donald Trump and Robert Kiyosaki are pronouncing it as the best home based business activity to pursue.
So what is network marketing actually?
The idea behind network marketing is to build a team of people in a network who will all be selling the same product. The person who starts the network will have a product to sell. This person will try to look for more people who can sell the product too. The people who join in will become subscribers to the network. They may even pay a fee to the initiator of the network to be in it. At the same time, they are selling the products, for which they retain a commission. Now, these people will look for more people under them, with the same factors as are applicable to them. In this manner, the chain continues to grow. Each person in the chain sells the same product and keeps a commission. The commission will be higher for the members who are higher up in the chain.
Network marketing is also known as MLM, which is in fact a more popular name for the activity. MLM stands for Multi Level Marketing.
It can be easily understood that the greater the network grows to be, the higher is the profit for everyone involved. Therefore, the primary endeavor of everyone in the chain is to recruit as many people as possible. Simultaneously, they have to sell their product to as many people as possible too.
The money for any member will directly depend on the number of members in his or her downline. For that reason, people at top positions in the MLM networks take their roles as leaders very seriously. They hold several seminars and workshops for their downline members so that they can perform more effectively in recruiting new members and improving sales. These kinds of activities usually move throughout the downline.
Though network marketing is a typically online phenomenon nowadays, it is absolutely wrong to say that it is a very easy activity. There is always something to be done and usually it is about recruiting new people into the network.
You have to keep this point in mind if you are wishing to pursue an MLM activity. The business model is simple enough for anyone to understand it and begin their foray into it. However, to really succeed, you have to devote time, be a ‘people’s person’ and constantly keep yourself updated about what’s happening in your chosen niche.
Using Online Tools To Succeed In Network Marketing
The Internet has been a great big boon for all kinds of businesses and this is especially true about network marketing. If you try physical marketing, you might be able to promote your venture to a handful of people, which was the case in the eighties and the nineties. However, with the amazing power of the Internet unleashed on your promotional strategy, you can make the whole world your market.
There are several important differences between offline and online network marketing, which clearly show that the latter is more effective.
1. With offline marketing, your reach is limited. You can only meet people you know and a few other people, and that too with some kind of reference or contact. With online marketing, the sky is the limit. There are no geographical boundaries.
2. You will mostly waste time when you are marketing your MLM strategy offline. That is because you will mostly be meeting people who will not be interested in the product at all. But on the Internet, it is quite possible for you to meet people who are already interested in your idea. Most times, you will be actually contacted by these people and not the other way round.
3. Internet marketing for MLM businesses is way cheaper than offline marketing. For offline marketing, you need to schedule appointments, hold seminars, meet people and entertain them, etc. None of this is needed when you are marketing online.
It is no wonder then that people are trying to market their network marketing businesses online. There are various ways to actually bring people to your website – people who have already mentally bought the product but only want to make sure. The following are some of the most common ways used:-
1. Social Networking – Joining social networking groups is a way to promote your product. There are special niche groups here where you can make some intelligent posts about your network marketing venture and expand your network. In fact, your MLM network could be a subset of the whole network of the website.
2. Blogging – Making your own blog and writing about your MLM business is a great way of promoting your idea. Blogs also give credence to your concept because it allows people to “converse” with you.
3. Email Marketing – Sending targeted emails to people from a previously selected list is a great idea too. Emails make the communication personal and have a high chance of inducing the reader.
4. Article Marketing – Writing articles about MLM and submitting them to popular directories with the link of your website brings interested people to your website. This is a very good way to bring targeted people to your MLM business website.
How Good Is Network Marketing As A Work-At-Home Business
Network marketing or MLM is basically being promoted as a work-at-home business in our times and it is definitely not unjustified in doing so. If you check out the websites, blogs, forums, etc. with network marketing as their premise, you will see that they project themselves as a great business opportunity that anyone can do from their homes. They even speak about how these opportunities can help someone chuck their desk jobs and still make more money. With all this sales pitch, it is quite expected that people have several questions about these opportunities. One of the most poignant questions here is – exactly how good is MLM as a work-at-home opportunity? Is it really better than my existing job?
This is a question that needs to be answered. If you are even remotely thinking about MLM, the first thing you need to find out is whether this opportunity will be good for you.
Mainly, it will depend on how much you have to put in for the network marketing venture. The biggest draw of these network marketing opportunities lies in how they promote themselves as low-investment or free services. However, there are payments to be made. You will need to pay for the initial subscription and to get a kit which will include the product samples, instruction manuals and various materials that you will need to promote the business. This is not as much of a payment as it is an investment to help further your business. In any case, the initial investment if you want to get into an MLM activity will never go beyond $200.
However, the main thing that you need to concern yourself with is the kind of profits that you can earn. Now that will depend on the length of the chain of distributed you are able to make. The more people you can bring in, the higher the amount earned. There is a promotion system in all MLM networks. As you get a particular number of members in your network, your own status gets promoted and you earn better commissions. Then as these people bring in more people under them, your status is further promoted and you can earn more. Hence, it is not easy to pinpoint what your earnings will be, but people are known to have earned millions of dollars a year through online network marketing business opportunities.
One important element is patience. You have to persevere and make people join your network. This is going to be an uphill task and you have to be geared for it. How lucrative the MLM business will be for you will actually depend on how much you are willing to put into it.