There are many feelings people get when they hear the words, Network Marketing.
These can be good, or bad feelings depending on that person’s experiences, or what they have heard second hand.
What do you know about this type of sales method?
What is Network Marketing?
This is the use of a network to market and sell a product or service.
This benefits to the organization:
- significantly reduced marketing costs
- no need to pay for the shelf space in your local store
- no spending on print or media advertising
- no paid spokesperson, who may or may not have taken the product
- only have to pay their sales team if a sale is made
- allows for demonstration or education about how best to use the product or service
It capitalizes on your relationships and network to sell through word of mouth, based on your experiences with the product or service. This allows for a more effective sales approach to their target market. And they pay you for sharing this with your network, if they decide to become consumers or to join their organization.
Some well known people who have invested in Network Marketing: Richard Branson, Steven K. Scott, Warren Buffet, Larry King, Jamie Oliver, and Donald Trump.
If organizations can profit from this Sales Method, why can’t you? I know that I am.
We now see many traditional companies capitalizing on Network Sales through Facebook, Instagram, and other Social Networks, without paying you, or discounting your costs.
- when you like a Restaurant,
- Share a Trailer for a Movie,
- post a picture of you Consuming, Using, or Wearing their product.
They are banking on your relationships and network to reduce their marketing costs, and drive more consumers their way, without paying you any compensation or rebate. It makes them far more profitable as these organic methods to sell cost them very little, and it is far more successful at targeting consumers than advertising through traditional methods.
So, if you love the products or services that you are using, why not get paid for sharing their benefits within your network?
Network Marketing companies made over 182 Billion dollars in sales in 2014. And paid out roughly 50% of this in commissions to its direct salespeople. It leaves most other industries in the dust in total sales and paid out commissions.
98% of these commissions paid out are to people making less than 1 Million per year. It is estimated that there are currently 96 Million people worldwide who are associates within Network Marketing companies. 82% of these are happy with their results.
“Network Marketing has produced more MILLIONAIRES than ANY other industry in the history of the world.” ~ Les Brown
I know that I am significantly enjoying the products that I use, the team that I work with, and getting paid for sharing my experiences with new people every day. I even get paid while travelling with my family, or while taking a day off.
Success like this would not be possible or sustainable if the products or services were not good quality.
Would you risk your network and relationships to recommend a product or service that you did not like, or was not of quality, just to get paid?
Word would get out quickly, and regulatory groups would quickly close companies that generated income purely from recruiting and selling buy in packages, or where there are no products or services being offered for the money being spent.
While this may have happened in the past, or in countries with little regulatory intervention, this is not as common an occurrence today.