Many people are unsure about the business of Network Marketing and what it is. Network marketing often gets a bad rap. Because it’s a different way of doing business with a new form of business system, many people look at it suspiciously and think of it as a scam.
This article provides some information and guidance on how to share your particular business opportunity.
NETWORK MARKETING IS A FORM OF ADVERTISING & DISTRIBUTION
Network Marketing is simply a form of distribution that uses “word-of-mouth” advertising as a way to educate the public on the particular benefits or a particular product/service. It eliminates the need for costly media (TV, radio, newspapers, magazines) advertising which can represent more than 50% of the product cost.
YOU DO IT ALL THE TIME!
Have you ever recommended a good movie to a friend? What about the latest deal you found at a particular store or the quality of a certain product you just purchased? When you refer others to a business establishment or to one of their products, you are marketing their products or services – without being paid for it. Many service oriented businesses want happy customers who will spread the word about their quality services. As a result, they will PAY you to advertise their services through word of mouth to people who know and trust you.
Many people are sincerely and diligently building successful network-marketing businesses that have made a positive impact on their own and others’ financial futures.
WHY IS THERE SO MUCH MONEY IN NETWORK MARKETING?
Profits are shared between the company and the Independent Business Affiliates
Wouldn’t it be great if you were paid a percentage of the revenue you brought to a business because you referred someone to them? This is the concept behind Network Marketing. Network Marketing companies can afford to pay their Affiliates what they save in advertising. Instead of allocating the money to media advertising, Independent Business Affiliates are paid in the form of commissions and bonuses to those responsible for creating the sales.
For a reasonable entry fee or monthly subscription (often only a few hundred Rands), you can join an existing business system and immediately begin building a business. And because of technology, this can be done almost entirely online and automated. Paperwork, order processing, distribution, accounting, and follow-up are generally managed by the network-marketing software. This allows you to focus on building your business instead of worrying about the normal start-up headaches of a small business.
Residual income is an attractive feature of Network Marketing
Residual income is income that is paid to you long after the original effort for the sale that was made. Insurance agents earn residual income each time one of their customers renews their policy. It required only the original effort to get the account (and maybe some effort to maintain it) and he/she gets paid each time the policy is renewed (and the subscription paid).
Network Marketing takes this a step further. It gives Independent Business Affiliates the ability to leverage themselves by earning from the efforts of others in their network. (This is called duplication when people in your network build their own teams – thus doing what you had originally done.) Each time any of those in your network renews a product/service purchase (pays their subscription), even though it may not have been directly related to your effort, you earn residual income because it was your initial effort that, either directly or indirectly, generated the sale.
I DON’T LIKE TO SELL TO MY FRIENDS!
Most “Networkers” feel the same way. Network Marketing isn’t about getting friends or family involved in something that you don’t believe in. You must believe that it will help everyone (not just friends or family). If you don’t believe in it, you should never pursue it. Those who believe they can succeed with it have hope, confidence and the ability to set goals and carry them out.
Network Marketing is a business, NOT a “get-rich-quick” scheme. It should be treated like a business – only more important, since it is YOUR business (as an Affiliate to the company you’re working with). If you started your own “traditional” business – how would you promote it if you didn’t believe in it yourself?
HOW DO I SHARE MY BUSINESS WITH OTHERS?
- Always remember that people are looking for solutions to their problems or challenges.
- First establish if the person you’re engaging needs an additional income and is open to exploring another income stream option.
- Then share the business concept.
- NEVER talk about the amazing product you have! That’s the LAST thing you’ll share! You’re offering the person an opportunity to earn an extra income. You’re offering (“selling”) a solution!
Establish whether they:
- DESIRE to increase or supplement their income
- Are OPEN to exploring an additional income stream part-time
- Will put in the TIME, EFFORT and COMMITMENT it will take to increase their income
- Are WILLING to help others achieve the same goal
- Have easy access to a mobile phone/laptop and the internet and have their own email address.
If so, they’re good to go…
Now hand them your Affiliate referral link, assuring them of your FULL support as they build their business.
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