Commonly known as multi-level marketing, networking is mainly a direct sales method where the independent representatives help in selling products as well as services from the company to the customer. Network marketing is mainly a marketing procedure where the distribution model companies utilize for sending the products to the consumers.
However, the process is slightly different as instead of selling the products directly to the consumers through online or offline stores, sales representatives are appointed for distributing the products. These sales representatives visit door to door, buy inventory and sell the items.
You might think that these sales representatives are employees of the company, but they are not. Instead, each of these representatives has its own business. Sales representatives follow these multi-level aspects for recruiting other representatives who can begin their own business.
Besides, the income earned from network marketing comes from the commission you earned on personal sales.
Why Network Marketing?
Today network marketing is considered as a low upfront investment that helps businesses to grow. Besides, for starting with a network marketing business, you will not have to invest millions. Spending a handful amount on buying the products and selling them directly to your friends or your close ones will definitely help you to grow your business.
Due to this reason, the demand for network marketing is gradually increasing. Moreover, if you carefully handle the business, you can earn a lot of money. People looking for businesses or even part-time work for extra income can definitely begin with network marketing. Let us check out some of the reasons behind choosing network marketing.
Hassle-free entry- You will come across thousands of companies who let you sign up without any demands. Whereas, there are many companies, who ask you to buy sample kits, which are used for promoting their most hyped products. But, the biggest secret is those products are actually less expensive on other websites.
Comes with flexibility
This is one of the biggest advantages of network marketing. Besides, businesses are impossible to run if they do not provide flexibility to the owners. With network marketing, if you have a smartphone along with an active internet connection, you can handle your work from anywhere. Hence, you can understand that network marketing is better than other marketing techniques.
Yes, with network marketing, you can enjoy direct benefits. However, it is vital to have a proper mindset if you want to get the direct benefits. While you help others, you will automatically get the opportunity to succeed. Besides, you will get instant bonuses, which is great for those who do not have a permanent job or are involved with part-time work.
Get profit by supporting each other
Network marketing is versatile and advantageous in almost every way. For example, if you are not succeeding alone with all your efforts, then you can take help from your upline or your sponsor. Therefore, you can expect to get all the support you need for your business to grow. By all means, supporting each other helps businesses to grow.
Get international exposure
You are the one who gets to decide whether you want to invest or build your business. Moreover, the world is yours so it will depend on how you want your business to run. Once you join a network marketing business, you instantly become a socially connected person.
Leverage of earning more
It is vital to understand that network marketing is all about earning smartly and not by putting in hard work. All you have to do is arrange everything systematically, expand the distributors in your downline. Finally, decrease your working hours. In this way, you will be able to get free time and even earn more.
How does network marketing work?
When it comes to network marketing, businesses first recruit people who are interested in the products. Instead of paying monthly salaries, companies offer to sell the products at a discounted rate.
This helps them to encourage selling those products at the full market price. Therefore, as you can understand that if you sell the product at the full price, the profit you are making directly into your product.
You can once again reinvest the money to buy more products, sell them to earn more products. Due to this reason, network marketing is known as referral marketing since you can encourage more people to join the business under you.
Benefits of Network Marketing
There are thousands of benefits when it comes to network marketing. Just like every other avenue of opportunity, not every benefit is of huge importance to any one person. However, no matter what is the case, network marketing is definitely advantageous. Here are some of the common benefits of it.
• Low Entry cost
Normally the startup costs are quite low. Since you are investing a reasonable amount, you will get a few products, samples, and even get training for the products. The entire pack is known as the start-up pack. You will receive the products in hard or soft format. Businesses these days are opting for cloud-based information, thus making it easy for updating as well s distributing to the associates.
Flexibility is one of the restricted advantages that you can get in the traditional business world. However, when it comes to network marketing, you get huge flexibility. The reason behind this is, you work in an environment, which is suitable for you. Moreover, you can work at your own pace and make a working environment that works best for you.
• Good income
Income is one of the most important things that almost everyone is concerned about when it comes to businesses. One of the best parts of network marketing, you can either get a direct income source or go for passive income. Direct income is generated from product sales directly to the clients. Passive income is the second stream of income and is generated through your team members, who are working under your leadership.
Types of Network Marketing
The entire concept of network marketing works on a business model. This model is dependent on the network of distributors who are responsible for the growth of the business. Mainly it involves the use of three normal strategies for making money, lead generation, recruiting, and finally building management. Besides, there are various types of network marketing, single-tier, two-tier, and multi-level.
Single tier marketing
Here, you have to tie up with the affiliate programs of a company for selling the products. Also, you do not have to worry about recruiting other distributors. Moreover, you will get your pay from the direct sales. There are many affiliate programs, you can earn money from the traffic you direct towards the affiliate’s website.
When it comes to two-tier network marketing, you have to recruit people. However, it is important to understand that your payment is not completely dependent on it. You can earn money by direct sales or through referred traffic by the affiliates. It is important to understand that two-tier network marketing is different and is quite effective.
This is distribution-based marketing that has one or more tiers. There are other network marketing strategies, which are marketing-driven networks and name-driven network marketing. You will come across various MLM programs that help in making money. Therefore, you can expect to get good incentives for recruiting.
How to Join Network Marketing?
If you want to start your network marketing business, then the first step would be enrolling with any existing network marketing organization. Alternatively, you can begin your business from the beginning. Here are some of the steps that you can follow for starting your network marketing business.
Select a niche
Make sure to choose a product line before beginning your company. For example, you can start with a nutritional network marketing company. It is the most renowned network marketing business.
Look for wholesale suppliers
Make sure to look for wholesale suppliers and attend meetings so that you can become familiar with the wholesalers. This will help in making your marketing easy. Also, you have to call various potential wholesale as well as manufacturing suppliers. You must find out if they provide drop-shipping services as it will help in keeping the inventory levels down.
Scope of Network Marketing in India
The scope of network marketing in India is quite good. The reason behind this is the high growth rate, and you can get promising returns. Hence, you can expect to get high success in network marketing. First, India’s population is almost 140 crores. Almost 50% of the population is the young generation.
Network marketing is definitely a promising business strategy as it helps in getting better returns. Hence, these are some of the things that you must know about network marketing.