What is Network Marketing – A Different Marketing Model
Network marketing, sometimes referred to as direct sales, and often misunderstood. Basically, network marketing is a model of marketing a product or service. Rather than the traditional marketing means, the network marketing model depends on people telling others about the products or services- to their network of acquaintances. This is direct sales, or selling directly to the consumer. Take cell phones for example…
Those marketing costs are extremely high, and that high cost of acquiring customers has to be built into the price of the product or service. That is why so many cell phone companies require service contracts of 2 years carrying penalties for changes. Some good friends and mentors of mine saw those lengthy contracts and high costs and set out to create a network marketing model for cell service. By counting on the associates (people in this network marketing business) to do the marketing in lieu of the expensive alternatives, they could offer cellular service at low costs and afford to pay the associates. In their company, associated earn money from both finding a customer as well as a commission from the subsequent monthly phone service. The savings from not having to pay the huge marketing expense the traditional cell phone companies are saddled with can be passed along to the associates and consumers. If this cell phone network marketing interests you as a consumer, please contact us and we will give you more information. If it interests you as an associate,
you can find out more by clicking here. What is Network Marketing – a Franchise or Independent Business?Network marketing has the benefit of providing a low risk/low cost business model for people to begin a business.While a network marketing company is not legally franchise, it works like one in that new associates can plug into a set step by step system to help them get started and grow their business. Legally, this is not a franchise, so there are not the high costs of franchise fees. Each network marketing associate is really in their own independent business. While they are bound by company agreements, yet they have independence to operate their business how they wish. While each network marketing company will provide their distributors with specific training and marketing materials, there is unique, generic (applicable to any network marketing company) approach that I highly recommend. This approach, used strategically, will set an associate apart from the masses.
What is Network Marketing – Sales or Referral?This is an important distinction to understand.I didn’t fully understand this until I read this great, free, special report by leading author and network marketing consultant, Ann Sieg. This book, explains what is network marketing and what it isn’t by means of exposing the 7 Greatest Lies in Network Marketing. In it, Ann differentiates that while network marketing is referring products or services to people you know, since there is a profit motive, it is more like sales than sharing. Ann Sieg says it best, so I highly recommend you get this $195.00 valued resource yourself, free, and learn it directly from this leading expert. She fully explores the question: "What is network marketing?".
What is Network Marketing – Multilevel Marketing and a Pyramid?Network marketing, as direct sales, is also frequently multilevel marketing.The factor that makes it multilevel marketing is if the particular company pays its associates commissions from the people who are in levels below them. If they do, then that particular network marketing company is also a multilevel marketing company. Does that make it an illegal pyramid?
It can also help you make lots of money by finding a good company and
working the business the best way.
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