When an individual asks me, "What is network marketing?" I constantly say "it depends". Simply because to some people it is going to be a "scam" and to other people it signifies a couple of hundred dollars per month in their bank account. And to a number of, "what is network marketing" indicates a fortune.
Based on WikiPedia, "Multi-level marketing (MLM) can be a marketing strategy in which the sales force is compensated not just for sales they personally produce, but also for the sales of other individuals they recruit, creating a downline of distributors and a hierarchy of multiple levels of compensation." To those that feel it's a scam, chances are they simply didn't get in, get busy and make it work for them.
What exactly is Network marketing? - Understanding The basics
Each and every business is in business to make a profit and to make a profit some thing needs to be sold. It doesn't matter if you are speaking about Barbie Dolls, vitamins or cell phone service. No one tends to make money unless the product or service is sold. In a standard retail environment, the product is commonly created, shipped to a warehouse, then shipped once more to a retail outlet where it will be sold and every person gets a piece from the profit pie along the way.
Network marketing is no different. The retailer is replaced by a distributor's home where she keeps the products until they are sold to her consumers. Network marketing provides a massive benefit to organizations due to the fact they do not have the expense of renting or acquiring retail outlets and staffing them and so on.
The words "pyramid scheme" are often utilized when people speak poorly about network marketing. But think about it. The leader in the pyramid represents essentially the most successful people inside the business. The base of the pyramid represents all the thousands of distributors. This really is no different than any other business model. Organization structure is precisely the same. The CEO is in the leader and also the people who operate in the small white cubicles or on the shop floor are at the bottom of the pile.
In typical business most people spend their working lives working for promotions and receive raises which might come annually if you're lucky. If they keep up with inflation you are even luckier. It does not matter how hard you work for many companies, promotions will only come along infrequently, if at all.
With network marketing life is actually a lot clearer. In case you start out working hard and build a productive team, you'll be able to quickly move up inside that "pyramid" without having to kill your self during your working years.
Lots of people who join a network marketing opportunity are content to simply purchase the products and services at wholesale prices, maybe, retail the products here and there when the opportunity arises. This will earn a few hundred dollars per month. However the earnings possible is considerably more than that. In fact, there is no cap towards the quantity of income that is possible to make or how rapidly you are able to earn it.
It does take a lot of hard work, but you are doing it for the benefit of the business and your family members and not somebody else!
What exactly is Network Marketing? - Leveraged, Residual Revenue
In case you are trading time for money, there is only so much time to work so your earnings are naturally capped. Inside the network marketing model it is possible to build a team of distributors who also work hard and you'll be able to earn good commissions based on the time and effort they put in. This removes the revenue cap and, in time, you are able to begin earning of 500, 1000, even tens of thousands of dollars working only 2-10 hours per week.
So now you'll be able to see how the sky's the limit within the network marketing business if you work hard. So what is network marketing - it is an approach to escape the corporate rat race and take satisfaction in a substantial income and living a life that most people only dream about.
Based on WikiPedia, "Multi-level marketing (MLM) can be a marketing strategy in which the sales force is compensated not just for sales they personally produce, but also for the sales of other individuals they recruit, creating a downline of distributors and a hierarchy of multiple levels of compensation." To those that feel it's a scam, chances are they simply didn't get in, get busy and make it work for them.
What exactly is Network marketing? - Understanding The basics
Each and every business is in business to make a profit and to make a profit some thing needs to be sold. It doesn't matter if you are speaking about Barbie Dolls, vitamins or cell phone service. No one tends to make money unless the product or service is sold. In a standard retail environment, the product is commonly created, shipped to a warehouse, then shipped once more to a retail outlet where it will be sold and every person gets a piece from the profit pie along the way.
Network marketing is no different. The retailer is replaced by a distributor's home where she keeps the products until they are sold to her consumers. Network marketing provides a massive benefit to organizations due to the fact they do not have the expense of renting or acquiring retail outlets and staffing them and so on.
The words "pyramid scheme" are often utilized when people speak poorly about network marketing. But think about it. The leader in the pyramid represents essentially the most successful people inside the business. The base of the pyramid represents all the thousands of distributors. This really is no different than any other business model. Organization structure is precisely the same. The CEO is in the leader and also the people who operate in the small white cubicles or on the shop floor are at the bottom of the pile.
In typical business most people spend their working lives working for promotions and receive raises which might come annually if you're lucky. If they keep up with inflation you are even luckier. It does not matter how hard you work for many companies, promotions will only come along infrequently, if at all.
With network marketing life is actually a lot clearer. In case you start out working hard and build a productive team, you'll be able to quickly move up inside that "pyramid" without having to kill your self during your working years.
Lots of people who join a network marketing opportunity are content to simply purchase the products and services at wholesale prices, maybe, retail the products here and there when the opportunity arises. This will earn a few hundred dollars per month. However the earnings possible is considerably more than that. In fact, there is no cap towards the quantity of income that is possible to make or how rapidly you are able to earn it.
It does take a lot of hard work, but you are doing it for the benefit of the business and your family members and not somebody else!
What exactly is Network Marketing? - Leveraged, Residual Revenue
In case you are trading time for money, there is only so much time to work so your earnings are naturally capped. Inside the network marketing model it is possible to build a team of distributors who also work hard and you'll be able to earn good commissions based on the time and effort they put in. This removes the revenue cap and, in time, you are able to begin earning of 500, 1000, even tens of thousands of dollars working only 2-10 hours per week.
So now you'll be able to see how the sky's the limit within the network marketing business if you work hard. So what is network marketing - it is an approach to escape the corporate rat race and take satisfaction in a substantial income and living a life that most people only dream about.
About the Author:
Joe Burke writes under the names jbmuchin and augustus1. His many topics include MLM, Multilevel Marketing and Network Marketing. His writings can be found on many article directories.multilevel marketing, andinternet marketing
