Why is Network Marketing Relevant Today?
Network marketing, also known as pyramid selling or multi-level marketing, is an advertising strategy for the sale of goods or services whereby the revenue of the MLM business is derived primarily from the accumulation of wealth of members of the organization. Network online marketing consultation
has a number of different names such as direct selling, pyramid selling or multilevel marketing and these have all been used to refer to the same business opportunity. Network marketing also takes advantage of the fact that people come into the business with few or no experience of their own. Consequently, they are often persuaded to join a business in which they will be able to make a lot of money relatively quickly. However, most of them are not prepared to put in the time or effort to build and develop a business and by the time they realize the potential of such an opportunity, it is too late to make any substantial profit.
The structure of a network marketing company usually consists of four levels or tiers. At the top level there are “level one” direct salespeople who recruit new salespeople and build the downline. At the next level up are regional representatives or regional managers who report directly to the main office and direct salespeople. At the highest level are senior salespeople who recruit and train the newest salespeople, organize their time and efforts and make sure that the right salespeople are in place to make the maximum sales. The whole structure is designed to generate a continual income which is generated by the accumulation of additional downlines by each individual salesperson.
There is some debate as to whether there should be tiers in a network marketing business model, although this is becoming widely accepted and widely used. The main problem with the tier system is that it makes it very difficult for newcomers to break into the business and become successful immediately. In a multilevel marketing program, a newcomer can easily build his team of direct salespeople while learning the business model and promoting the business in his own way.
A very important aspect of the multilevel marketing business model is that it is not a “one size fits all” business opportunity. Each person in the organization must be evaluated individually and in accordance with their own personal needs and strengths. Building a successful team requires that people are encouraged and even rewarded for their efforts.
As mentioned earlier, there are many benefits in building a network marketing team of people who are each based on their own personal selling objectives and capabilities. Each team member will bring something unique to the table which is especially valuable to the home business entrepreneur. These skills will make the company much more successful since they will be selling products that are in high demand and/or quality. They will also bring something unique to the table that other direct selling programs may not have.
Many network marketing systems make it extremely easy for new distributors to make money without putting much effort into recruiting. In many cases, this can be done through very aggressive marketing techniques that draw potential members in with very little effort required from the distributor. Unfortunately, this is not the case with multi-tier network marketing operations.
There are many good examples of good business models for network marketing. This is why it is very important that a company utilizes a system that will work for them. Network marketing is a business model that can be used by almost anyone who wants to make money online. A good mentor can help you find what is right for your business models. The most important factor is that someone who is willing to help you build a business should be found.
Network marketing in its most pure form is an excellent tool for promoting a business. A good mentor can teach individuals how to become better salespeople and help them find the best selling products. These things are very important to the success of any MLM. Once you have found a mentor that teaches you the art of building a downline, finding customers and recruits is just a matter of time.