Have you ever heard of Network Marketing? Does a negative thought come to mind immediately? Stop for a few minutes and read this post, because Network Marketing is not a scam or an illegal earning system, as you might think.
The Network Marketing is a marketing strategy and a business model was born in the sixties, which aims to build a distribution network to make a profit in a direct and indirect way.
Usually, Network Marketing requires the purchase of a product or service which is then placed on the market by a network of resellers, which must be set up, trained and managed. The English term network, in fact, means network and precisely in this lies the strength of this business model.
How to make money with network marketing
How can you earn thanks to Network Marketing? In these three ways:
- Selling products or services directly to customers;
- Thanks to a fixed percentage (fee) on the turnover of collaborators belonging to the sales network;
- Thanks to the possibility of taking advantage of any bonuses linked to the turnover generated by the sales network.
Usually the Network Marketing marries the logic of Multilevel Marketing (MLM), the Multi-Level Marketing, which provides for the purchase of products that you then become sellers. This second sale can be directed to the end customer or it can be exercised through other sellers (the network, the network that the seller-agent will be able to build, earning a fee).
The essential ingredients for Network Marketing to work? The (unquestionable) quality of the product or service sold and the adequate training that sellers must follow before taking the field.
How Network Marketing works
Network Marketing is a sales strategy that can be adopted by both a private individual and a Corporate Video Production Dubai company. Whoever decides to use it must first organize a good course to adequately train the sellers who will join the commercial network, teaching them the principles of marketing, door-to-door selling and communication.
After training, the seller (usually but not always) will have to buy a certain amount of products that he will have to be able to sell to the end customer, transferring an agreed percentage of his earnings to the agent who started the Network Marketing strategy.
The advantages of Network Marketing are different:
- Once a good and effective network of vendors has been built, the earnings can also be very substantial;
- it is a meritocratic system, because the seller capable of getting involved, proposing himself, implementing sales techniques and building a solid network of customers is to be rewarded economically;
- Each seller can manage his time as he sees fit;
- It is a flexible system: efforts, commitments, resources and time can be modulated according to the needs of each seller.
The companies seriously involved in Network Marketing (above all I mention Workweek, the company that distributes the Thermomix, the well-known food processor, and Tupperware, the company that produces the homonymous products, the light and indestructible plastic containers) offer network of sellers of excellent training and support tools.
It is very important, in fact, to guarantee constant courses and updates both regarding the product or service sold and regarding sales techniques.
Equally useful is to support the sales activity with institutional information material that tells the company and its offer and that helps the seller to win the trust of people: catalogs, website, social channels, free trial products, assistance service for customers, product warranties, and so on.
But that’s not all, because to distinguish a company that uses Network Marketing with seriousness and professionalism is also the provision of a system that manages and attributes sales correctly and safely, so as to stimulate the activity and commitment of the its commercial network.
Don’t confuse Network Marketing with the pyramid system
Be very careful not to confuse Network Marketing, a legal sales system, with the pyramid system, prohibited by law 173 of 2005, art. 5, which requires not to earn on the earnings of other people who in turn recruit other sellers.
How can we distinguish Network Marketing from the pyramid system?
You must keep in mind that characteristic of Network Marketing is the fact that the sale is always supported and preceded by a training course that the sellers must follow.
In the pyramid system, on the other hand, the first and last aim of the business model is the recruitment of people who have to pay a fee in order to become part of the network created by the company and to enjoy the relative benefits.