The concept of network marketing is a simple one, but is very unique. It combines marketing products and social marketing. The company has a product and will recruit people to join their company and sell products for them. They will then pay them a commission. Added to this, these people will recruit others to sell product for the company- both new recruits and the original salesperson- they both will gain a commission from whatever the new recruits sell. This will go on several levels deep. This means the original salesperson will develop a team of sales people and earn whenever they sell anything. Plus, many companies give a bonus for initially recruiting team or downline members. This is known as multi-level marketing or MLM. The original concept started offline and many of the bigger network marketing companies still promote their businesses using offline concepts. However, the internet is far cheaper to do promotions.
As the internet started opening up, there were no dearths of people wanting to start a business. MLM took off as people flocked to what they considered to be an easy business. However, some companies took advantage of the situation and offered little or no product. The members then had to rely on recruiting alone. The only people earning anything substantial were those at the top and of coursing the owners. Eventually, the company collapsed as people either left of there was no more people to recruit. These types of MLM are known as pyramid schemes and are illegal in most countries.
So when you choose an MLM or network marketing company, be sure to check it out thoroughly. Be careful, the company is legitimate and has a good product. In order for you to join a network marketing company, you will be required to buy their product every month for a small fee. In this way you will be earning every month from your downline members. As you build your team and sell more products, you will develop a large and growing residual income. In order to achieve this end you will need to know how to manage and promote your network marketing business.
How to be successful in Network marketing:
Creating a system:
In order to be successful, you will need to develop a solid system that your team members can duplicate easily. Every customer for the product will automatically become a team member and earn you residual income. Your system will have a 2-pronged attack- one to sell the product and one to build your team with these customers. Second, you will be actively recruiting new team members. You will need to test carefully and see which promotions are achieving your goals.
Keeping your team together:
In order to keep your team together and stop members from leaving and getting discouraged, you will need to keep the morale of the team high. You can do this by giving good support to your team members. Help them to use your system and achieve their objectives. Always answer questions properly and work closely with all your team members. Be sure that you recruit members to your team who are absolutely committed to success. You cannot afford to have tire kickers. Network marketing is a challenging business and your recruits need to know it will take hard work to be successful.
Training your team:
Success will only be realized by good methodical training. Train specific leaders in your team and motivate them to train others. Be sure they understand and can duplicate your system for success. Once all your team understands this system and is prepared to work and teach other team members, you will be successful and will increase your mutual profits. Residual income will grow for all of you as you all work together for success.