What Is Network Marketing
Maybe you have heard a lot about Network Marketing because Network Marketing is heard everywhere these days. Because Network Marketing is a different model. And this marketing model has been applied by many companies for a long time, so you also need to know about Network Marketing. If you know only then you can earn from this Network Marketing. Today I will tell you something about Network Marketing.
First of all, let’s know what is Network Marketing.
Network Marketing is a business in which all people join a pyramid network group and sell the products of any company. And every distributor of this network ie sales member is an independent representative. People who join this network are paid a fixed commission for selling products.
Whenever he sells something or the member sells a product through him, they get commission. Each participant associated with this business is called an IBO. That is, Independent Business Owner, because he promotes his own business by himself. It is delivered to the consumer through network marketing, i.e. direct selling.
Network Marketing is also called Multi Level Marketing also has many other names like
- Cellular Marketing
- Affiliate Marketing
- Consumer Direct Marketing
- Referral Marketing
- Home Base Business Franchising
Companies like Amway and Tupperware use this marketing model to sell their products. After knowing what network marketing is, let’s try to understand it with an example.
In normal marketing, if you sell a company’s product, the customer takes it and pays, and you get your commission immediately. But network marketing is different. Suppose you are associated with a company, and you sell that product to your friend, you get commission for that, but if your friend also sells that product to his friend, who do you think will get the commission of that product?
In this case your friend will get the commission of that product and you will also get a fixed commission. Now the question is why you got commission this time. Your friend sold the product. The real thing is that this is network marketing.
You will get commission based on the number of people in your network who sell that product. Thus the pyramid continues to grow as the pyramid members add new people to the pyramid. The pyramid grows bigger and the members of the pyramid get commission according to their position. After explaining network marketing let’s know about its benefits.
Benefits:
Organizations that follow in network marketing direct the company’s product marketing sales. They do not take the help of any distribution channel. But such non-employment gives responsibility to individuals who get a commission every time they sell a product. Joining this network does not cost a lot of money and there is no time limit.
Many discounts and offers are given to every person participating in this type of model. This business model does not require advertising as compared to other businesses. Percent to percent margining is much more effective in this business than advertising. This network pyramid takes a very large form at a time and the commission of each member also increases. However, no member has a fixed salary. The more people who join, and the more products they sell, the more commission they get.
After knowing so much about network marketing, don’t think it’s the perfect model because it should look the other way around. Because many times some fraud companies come in the market and attract people by showing their false plans and run away with money. That’s why you have to be very careful. Before joining any company it is necessary to do full research. Even if any of your own people or relatives ask you to join any company, you will answer these questions from them.
- What are the principals of that company?
- Know who owns the company
- How training is provided there
- Do you personally like his product?
- Are you satisfied with the quality and price of the product?
- People you know will be encouraged to take this product
Answering such questions will help you understand whether the company is good or bad. And whether you can make good profit by joining that network. Friends these days are the era of competition and many people get badly trapped in the hope of getting a little bit more than others. You see everything good and bad and then join the company.
All energy and time have to be invested here. After understanding everything, join yourself and make others join. Friends, no matter which company you work in or network marketing, you have to work hard. It must be remembered that money can never be earned without hard work. It is true that by joining network marketing you can earn good money for long time very quickly!
