Network Marketing or Multi-Level Marketing (MLM) is low capital business, which is also called an Affiliate Marketing or Direct Sales. It depends upon mostly on company’s compensation plan. It has become a famous and fast track success system in different countries.
Working of Multi Level Marketing
In this marketing system, you buy products form own company store or outlet instead of others like supermarket, pharmacy or outlets. You invite other people and buyers to do same; your company pays you a handsome chained sales commission. It is repeated every time when your recommended people buy products.
In this modern and profitable system, you don’t need to carry stock, office or sales staff. You just recommend the people and company pay you commission. The company is also responsible for delivery of products directly.
Through Referral Fee, you also earn commission when your customer recommends the products to another friend. By this system, you earn handsome money on weekly or monthly basis. At a special stage, you become a Professional Network Marketer. With the passage of time, you achieve next levels and increasing income through regular commission. After a short time, you get such a level that gives you highly attractive income, team growth and positioning.
You are paid due to your chained efforts and systems created, like two lines, teams or legs, which you started. Your created teams or people are called down-lines, teams or associates.
Example of Network Marketing System | MLM
For understanding the Network Marketing System, you plant a small lily pad in a pound, it grows through this:
- This lily pad doubles daily
- The lily pad pound reaches at 100% level when everywhere lily pads.
- On 29th day, it is 50%
- On 30th day it acquires 100% level
Advantages of Network Marketing | MLM
It has a lot of benefits & advantages, some are as:
- No need of employees
- Low Overheads or Startup cost is required
- There is no need of special marketing degree or qualification
- Time flexibility & freedom
- Everyone can do it as a part time job or freelancing
- You earn a lot through other people’s efforts
- Unlimited profits
Why People Are Joining Network Marketing?
According to a survey:
- Supplemental Income (51%)
- Full Time Income (34%)
- Product Discounts (9%)
- Meet New People (6%)
It is the best solution in such society where unemployment is affecting the people and government is unable to create jobs. There are some other reasons of joining Multi Level Marketing of NM:
- It is a social activity
- People are earning it with fun amazement
- A direct source of business ownership
- People are helping each other through this activity
- Best source of wealth creation
Why Companies Are Liking Multi Level Marketing | NM
- It pays for production, not for other causes like coming to work.
- One of the best possible uses of your time
- No customer or employment cost
Top 5 Reasons of Increasing Network Marketing Business
- You are the boss of your own business with complete controls on all business issues
- You can save the time and money through this system. You build your business fast.
- You can expand your social community through this business and involve your friends as well as your relatives for earning handsome profit.
- You are recognized and awarded directly after achievements and good productivity. Your performance matters here.
- You earn suitable money through this system and become a source of income for others.
Top 5 Evaluation Techniques about a Network Marketing Company
- Investigate about the founder, initiator and manager of the company. You can also ask about the company investors and stakeholders.
- Ask about the company, whether it is solvent or not.
- Check the company condition is it growing or not.
- Check if the company has Board of Directors or not. It is good strategy to know about it.
- Check the history of the company, is it more than 10 years old, if yes then check the branches of the company.
Tips to Know About Network Marketing Scam Companies
Quality products or services: People are in search of quality products or service, know if the company is providing such types. If it is okay then right otherwise there may be risk in business with such companies. If it is selling dreams and just hopes then never waste your time and save yourself from such fake system. Such companies are just earning profit through you.
Initial Investment requirement: Minimal investment is required for every company, research about it. Don’t involve yourself in unlimited or high upfront payments. Check the unlimited demands of the company, if it is demanding high amount be careful and keep yourself away from this system, inform your friends & family members as well.
Money back or after sales services: It is the quality of good companies that these offer aftersales services with money back guarantee if you don’t like their products or services. If any company is not offering such things, get more information about it. Keep your side safe and secure.
Training & developing sessions: Good companies offer suitable training & development session for their workers and affiliates. Handsome tools are also offered. Check all these things and know about the importance and worth of a company. Different types of programs increase the worth of company and its employer, get enough information about all these and join after complete satisfaction.
No promises, just work and productivity: Suitable and real companies deliver their goods & services in good ways that satisfy the partners. Find such companies and know about the fake promises. Real companies work in time with delivery in time, know these things about the company and find the best one from market.
This was all about network marketing, which has become a modern trend for growing in market. It is good strategy to earn good profit within short time after medium working, just create the links and connection, earn and grow. Not only you, but also your friends & family members grow through this modern marketing strategy.
Hello everyone! This is Richard Daniels, a full-time passionate researcher & blogger. He holds a Ph.D. degree in Economics. He loves to write about economics, e-commerce, and business-related topics for students to assist them in their studies. That's the sole purpose of Business Study Notes.
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