So What Precisely is Network Marketing?
Before we begin, we need to define what network marketing is, what multi level marketing means, and how direct sales fits into the equation.
Usually regrettably, the terms are used interchangeably.
A company which chooses to use network marketing determined to omit the established brick an mortar supply model for one which is more individual through a distributor network. It is common for such companies to also have a multi level comp plan which pays out to the network on more than one level, but this does not apply to all.
So you can see from this definition that all multi level marketing businesses are in fact using the network marketing supply model, but the converse is merely not the case. There are a lot of network marketing businesses which decide to just pay their representatives with a simple one or two tier comp model, and they can be massively successful.
As you can see, network marketing is just a enterprise model, a supply strategy, and it really amounts to “micro-franchising”. The benefit for the network is that the gigantic price associated with a brick and mortar franchise can be minimized, and it offers a gigantic upside potential.
A true win win if done properly.
Here are the main advantaged for the distributor in a network marketing group:
* typically very low start up price
* for most there’s a gigantic upside potential
* individual development and enterprise training included
* no employees to worry about until very successful
* no complicated book keeping required
* flexible work schedule, work when you want
* choice of who to work with, work with who you want
* not tied down to one location, work where ever you want
* no boss to hassle, demean and aggravate you
* amazing tax benefits – keep more of what you make
Of course to go along with the benefits, there are things to consider that make direct sales. The top three potential down side to consider when looking into starting your own enterprise.
* must be accountable to your self
* you must be self motivated
* must be creative in solving problems
* is your house too noisy?
* must rely on yourself for motivation, focus
* must learn to keep reasonable documentation
Personally I think the advantaged far out way the downsides, but the fact of the matter is not everyone is cut out to be an entrepreneur.
Network marketers who are serious about building a enterprise should be treating it like a enterprise and do what other successful entrepreneurs do to build their enterprise.
What is that, you ask?
If you study the success habits of top leaders in any industry, you’ll discover that all of them are continuously reading and learning about enterprise basics, staying current on the latest sales and marketing strategies, and spend time hanging out with and networking with their peers. They are continuously striving to create more value which will in turn enhance the bottom line.
Treat it like a enterprise, and you can create considerable success.
Treat it like a hobby and go broke.
It’s as simple as that.