Wikipedia definition: network marketing is a way of doing business in which a sales force earns a commission not only for sales of products and services they personally generate, but also for the sales of others they recruit and bring into the business, which creates a downline of distributors and a hierarchy of multiple leveraged levels of compensation.
This definition is pretty straight forward. Individual sales of goods and/or services generate revenue. Recruiting others into your group to sell goods and/or services also generates revenue. Revenue flows to you from what you sell as well as from the sales made by recruits. Therefore, you have a network of 2 or more people selling the same goods and/or services creating revenue.
Companies who participate in network marketing generate compensation plans based on the hierarchy of their systems. Some are so complex its almost impossible to understand. Others are simplistic and straightforward so the ORP (ordinary, reasonable, and prudent) person can understand them.
Before joining a network marketing company you must do your due diligence regarding the compensation plan. Many companies require you to buy a certain level of goods or services each month to remain a member. You need to be able to determine how much money you'll have to spend before you start receiving income. Otherwise, you could find yourself invested so far that you can't continue the business. There are many people who experience this situation every year.
Most people who join these companies have no clue what new skills they will need to develop to succeed. They have no sales or marketing experience and just don't know how to get started. That's where the network marketing companies' training and support systems become exceedingly important. They must provide the necessary training in sales and marketing techniques for the ORP person to become proficient. This can become a long and arduous task for some and in some cases may overwhelm the trainee.
Again, you must do your due diligence before joining an opportunity. That includes knowing what you will need to bring to the table in the way of skills as well as the financial responsibilities. Failure to bring the skills needed can be just as devastating as financial failure.
Network marketing is a successful business model and has created more wealth than any other single industry. It provides lots of flexibility, creates teamwork, increases self esteem and is highly profitable. Great psychological income comes from helping others achieve success.
Network marketing requires dedication and perseverance in abundance to succeed. There are no "get rich quick" schemes that succeed for very long. Building a network marketing business is achievable and the rewards of success are tremendous.
I wish you the best of success should you pursue a future in network marketing.
Best regards,
Doug
This definition is pretty straight forward. Individual sales of goods and/or services generate revenue. Recruiting others into your group to sell goods and/or services also generates revenue. Revenue flows to you from what you sell as well as from the sales made by recruits. Therefore, you have a network of 2 or more people selling the same goods and/or services creating revenue.
Companies who participate in network marketing generate compensation plans based on the hierarchy of their systems. Some are so complex its almost impossible to understand. Others are simplistic and straightforward so the ORP (ordinary, reasonable, and prudent) person can understand them.
Before joining a network marketing company you must do your due diligence regarding the compensation plan. Many companies require you to buy a certain level of goods or services each month to remain a member. You need to be able to determine how much money you'll have to spend before you start receiving income. Otherwise, you could find yourself invested so far that you can't continue the business. There are many people who experience this situation every year.
Most people who join these companies have no clue what new skills they will need to develop to succeed. They have no sales or marketing experience and just don't know how to get started. That's where the network marketing companies' training and support systems become exceedingly important. They must provide the necessary training in sales and marketing techniques for the ORP person to become proficient. This can become a long and arduous task for some and in some cases may overwhelm the trainee.
Again, you must do your due diligence before joining an opportunity. That includes knowing what you will need to bring to the table in the way of skills as well as the financial responsibilities. Failure to bring the skills needed can be just as devastating as financial failure.
Network marketing is a successful business model and has created more wealth than any other single industry. It provides lots of flexibility, creates teamwork, increases self esteem and is highly profitable. Great psychological income comes from helping others achieve success.
Network marketing requires dedication and perseverance in abundance to succeed. There are no "get rich quick" schemes that succeed for very long. Building a network marketing business is achievable and the rewards of success are tremendous.
I wish you the best of success should you pursue a future in network marketing.
Best regards,
Doug
About the Author:
Want to find out more about network marketing, then visit Douglas Blackley's site on how to choose the best internet marketing for your needs.
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