The majority of us want to earn money with minimum risk and minimum investment involved right? Then why not go for network marketing?
Network marketing is the most popular form of earning money nowadays. From teenagers to adults, everybody who is in college or sitting idle or simply wants to do something to increase their pocket capacities is involved in this budding field of network marketing.
You may have casually heard or seen it in practical life around you by the name of affiliate marketing or multi-level marketing but here you will read about what network marketing is exactly and how to start network marketing.
WHAT IS NETWORK MARKETING?
As the name suggests, network marketing in a layman’s language simply means promoting and selling a product or a service within your own network of family and friends. Of Course, this does not just limited to your family and friends but can be extended to people who you generally like such as neighbors, colleagues, etc.
Coming to the technical definition, network marketing is a business model that majorly depends upon person-to-person sales. It is often a work from home concept since it is limited to people you know, but once obviously need to accelerate their business and hence it can become a wider arena for you with time.
HOW DOES NETWORK MARKETING WORK?
One needs an understanding of how network marketing actually works in order to understand how to start network marketing. The most important thing to keep in mind is that this Marketing is all about making networks, not just as customers but also as people who could work as leads and help you carry out your sales.
Businesses that follow a network marketing model often create a chain of salespeople. This means that the salespeople they recruit are asked to employ their own networks of salespeople. The first party in this case will get a certain amount of money often called a commission on their own sales and also on the sales by the next party. A further tier of salespeople can be created, which will then result in more commission to the first and the second party.
SKILLS REQUIRED TO WORK AS A NETWORK MARKETER
Network marketing though seems simple is not actually that easy? Since not everyone has the ability to make networks and run a business to earn a profit, here are some of the “must-have” skills in order to be a network marketer. These are as follows;
- Excellent communication
- Patient listener
- Convincing power
- Management capabilities
- Organizing capabilities
- Pleasant personality
- Open to growth
- Willingness to try something new
- Ability to take risk
STEPS TO START NETWORK MARKETING
If you think that you have the above skills you then obviously starting network marketing will give you no harm. Rather, with the above skills, you would be able to make money more quickly and easily.
In order to start your journey in network marketing you must follow these steps given below;
STEP 1- STUDY THE MARKET
The biggest advantage of network marketing is that it’s all about your communication skills and network and you don’t need to stick to one product. You can sell other products as well but in order to grow and make money, you must sell something which is exclusive in the market. And that is the reason that it is so important to study the Market. You must be aware of what excites people, what trends are going on in the market, and also what are the rates people get those same products or services at? Also if you intend to start something big, similar to a start-up through network marketing and planning to appoint investors then also you must make sure that your product is exclusive in the market so that those people want to invest in it.
STEP 2- IDENTIFY YOUR TARGET AUDIENCE
One of the most important steps is identifying your target audience and choosing your niche. You must target those audiences that you are sure will get the benefit of your product or service because only then they will avail your product or service. Targeting customers that have a popular online presence can be very beneficial for your network marketing business since you can get more clients from their reviews or references.
STEP 3- AFFORDABILITY
You must know the right value for the product and service that you are selling. Something that is great and at the same time affordable has always been the best strategy to attract customers. Depending upon what audience you are targeting, you can set the rate for your products because ultimately it’s them who have to buy it, hence your prices must not be hefty and rather be kind of affordable for the people.
STEP 4- REACH OUT TO NETWORK MARKETING COMPANY
If you want to become a successful network marketer quickly and easily then working for a network marketing company is actually the best thing for you. Remember that there are many fraud organizations running in the name of network marketing companies hence it’s important to work only for good companies with a famous brand presence in the market. One of the most common examples of this is Amazon’s affiliate marketing, where you can become a member of Amazon and by sitting at home earn money through network marketing.
You can click on this link to become a part of the Amazon affiliate marketing program and start your journey as a network marketer.
STEP 5- GETTING YOUR CREDENTIALS
Once you get into a network marketing company, boom gets ready for your main aim of building networks. For this, it is mandatory that you get all your credentials done. It can be some sort of a poster or banner or spreading cards to let people know about your business. You must also get access to company brochures, samples, flyers, etc. You will also require some other basic stuff like stationery items or any sort of gadget so get a hold of them and get started with your task.
STEP 6- LOOK FOR OPPORTUNITIES
After setting up correctly, you will get your success through clients, hence you need to look for clients. You can start with your target audience and approach them. Since you are doing network marketing you can narrow down your search to people you know like your friends and family. After that, you can request references and promote your business in formal and informal gatherings. Thus, here your communication skills come into play. Leave no stone unturned to brag about your product or service wherever you encounter a large audience. For more quick results you can always take your marketing to social media platforms as they are an excellent source to reach out to a greater audience. INSTAGRAM MARKETING, FACEBOOK MARKETING, etc. Can be a great way to enhance the chains of your network and make excellent connections for your network marketing business.
ADVANTAGES OF NETWORK MARKETING
- You don’t need to do it full day and can do it as a part time work
- Some people earn more income through network marketing in comparison to what they get from their full time job.
- It provides ample opportunities for people who aren’t employed and also don’t have much educational qualification to access jobs in other fields.
- It also provides work opportunities for students, housewives, senior or retired citizens and provides them with a substantial income.
- This business does not demand much of your investment and you can also start earning with zero investment.
- You can do this from home and don’t need to buy or invest in any infrastructure like office, separate working space etc.
- Often the products and services provided through network marketing tend to have a lower price than those we purchase in the normal markets.
DISADVANTAGES OF NETWORK MARKETING
- Majority of companies and businesses are fraudulent and it is very difficult to identify a trustworthy company.
- Sometimes the people engaged in network marketing are amateur and because of that good products are also marketed badly leaving a dissatisfied impression for customers.
- One bad marketing can result in losing a wide range of customers in this field and gaining them again is almost an impossible task.
- People are not completely aware about how the actual product looks since the product is not always advertised via newspaper or television and thus are doubtful while purchasing it.
- Despite it being an easy way of earning, network marketing does not guarantee a fixed monthly income always because it all depends upon the customers you make and the items you sell.
EXAMPLES OF NETWORK MARKETING
Let’s have a look at a few of the real-life examples of network marketing and how some companies have actually made a brand through this type of marketing strategy. The links are also mentioned for you to become part of the network marketing channel for the companies given below;
This is an American company that sells beauty, home care, and health care products. This is one of the most popular network marketing companies and gives an idea of an accurate network marketing model. The major attractive thing about this company’s network marketing model is that in order to be a salesperson here, you just need to buy its product, and then you automatically start getting compensation for the sales you make.
It is a company engaged in selling kitchen products and is another known example of a network marketing firm. It has a network marketing model where it provides bonuses and compensation on a team base performance and also on an individual level. The company believes in the concept of directly selling its products through its members.
Another example is a global nutrition company called Herbalife. This company helps people to pursue a healthy life. It provides business opportunities that help people to achieve financial stability through network marketing.
It is also a USA-based company which is now running for more than 100 years. It is certainly a great example of network marketing since it is delivering the best quality cosmetic products through multimedia marketing strategies. It was the world’s first Marketing firm which started in New York. Today this firm has a turnover exceeding the US $10 Billion.
Network marketing is more prominently budding nowadays than any other marketing form. Though it seems quite easy, it requires a lot of effort in order to make clients and convince them a lot to purchase your product or service. Of Course, when you start it as a profession by engaging in any network marketing company as a proper network marketer it is something promising but you need to keep in mind that if you start it on an individual level then you may not get profits initially and also your income keeps on fluctuating due to inconsistency of your networks. Thus, it all depends upon your purpose of engaging in this business of network marketing that determines whether or not you will be able to extract money out of it.
Herbalife has successful earnings of millions of dollars in around 80 worldwide markets.
It has achieved sales of 10.9 billion through a network marketing strategy.
Network marketing is known by various names such as;
● Multi-level marketing
● Direct marketing
● Pyramid schemes
● Ponzi schemes
The word pyramid and Ponzi has a negative meaning and refers to scams.
The network marketing or multi-level marketing companies entered India in the late 1960s and early 1970s. They provide people with small savings offers and then get large returns. It was mostly about stainless steel and jewelry that attracted a lot of people.