The Network Marketing o Multilevel Marketing emerged in the 1940s in the United States and is a business model that is based on the sale of products through a network of distributors.
Many people choose this form of work to earn extra income and others decide to start from scratch and set up their own network of vendors. In both cases it is essential to know the key points of Network Marketing and above all, differentiate it from an illegal pyramid structure.
What is Network Marketing?
If you still have not been very clear, it is likely that with brands like Avon or Mary Kay You understand a little better what kind of business I mean.
We associate the first with door-to-door sellers and the second with a more modern business model where sellers are ambassadors of the brand itself and talk about its advantages and ways of use on their social networks.
In both cases we talk about Network Marketing.
It is also very common to be sold with small appliances, books and products related to healthy eating.
But Network Marketing has a characteristic that differentiates it of other distribution sales models: the figure of the recruiter.
The recruiter, the axis of Network Marketing
In multilevel marketing sellers get a commission on the number of products they sell to customers, but they also get benefits of recruiting a new seller.
In this way, when a seller manages to attract a large number of new sellers, he or she becomes a recruiter and will take a percentage of the commission they earn.
However, if more resources are spent searching for new sellers than new sales, Network Marketing can be considered illegal. But we will see this later.
Keys to understanding the success of Network Marketing companies
Most companies that start as a distributor selling business model fail almost before they start. Why? Unlike what is believed, get the first income in multilevel marketing it is a titanic task.
But once you get them, your motivation and your desire to learn increase and that’s when your income begins to multiply. But this probably won’t happen for a few months, that’s why most startups and sellers get discouraged in the first few days.
Then I give you some tips not to fail in the attempt and become a reference seller or company in Network Marketing.
To have satisfied customers, you have to have satisfied workers. Be clear, if you are not a distributor that is not in fully in tune with the product you sell, you are not going to sell, you have to believe it.
Similarly, if you are the one who created the distribution network, your workers should feel protected and covered.
This is so in all companies, but with greater weight in Network Marketing, because your salespeople are the showcase of your business, and the face of the company that your customers will see, who in turn are potential salespeople.
As a distributor, setting short-term goals is essential. If you only have long-term goals you can be discouraged and not recognize small achievements. These are not always a saleSometimes it can be a better answer to a consumer question or complaint.
The quintessential tool for best MLM companies of 2020 are social networks.
Of course, door-to-door is highly relevant, but before you should have created a brand name.
In social networks, distributors can create real feedback with their customers, and what’s more, that’s where they can become recruiters if users end up becoming fully interested in the product.
In the case of cosmetics, for example, you can provide tricks to put on makeup, make known the natural ingredients of the products or even give a personal opinion, as a consumer and not as a seller, about them.
Further, thanks to instant communication We can answer questions directly or promote new products.
A Social network widely used by Network Marketing is Linkedin. Through it you can contact experts in the sector of your products that become influencers or brand ambassadors.
Recognize an illegal distribution network
Often people who enter a distribution network seek to earn money quickly, which leads them to make mistakes that border on or exceed the legal margin.
- ≫ For example, when a multi-level marketing network Rewards Recruitment More of new sellers than selling products.
- ≫ Another clear example is the poor quality of products. Make sure that the company has quality and return certificates.
- ≫ If they also insist that you as a distributor buy part of the products it is certainly a pyramid scam.
How to choose (or how to be) the best Network Marketing company
There are some requirements that as a Network Marketing company you must meet if you want to be successful in your working life.
Also as a worker willing to be part of a network of distributors, you must recognize these characteristics in the company you select:
Training by the company
Distributors must be ambassadors for your brand, they are the visible face and represent the company. They will be experts in the products they sell (answer questions, offer new ways of use, know possible failures) but also they must embody the philosophy and mission of the brand.
If customers see a connection between the brand’s personality, that is, the leitmotif, the why, and the characteristics or functionalities of the products, they will feel better making an outlay. You have to sell ideas and ways of life, not articles.
For this, the company must offer you training on its products and also make clear to you the brand image they wish to project and their long-term objectives.
Would you buy their products?
This is essential. Would you buy that product? Do you consider that it meets quality standards? Would you recommend it to a friend? If you answered no to any of these questions, forget about becoming a distributor.
Even though the products are of quality, you should feel represented by those articles and consider that they marry your personal values and then be able to sell them.
There would be no point in selling vacuum cleaners if you have never used one or in selling makeup products if you don’t usually spend time on your personal aesthetics.
Let’s not forget the most important thing, sIf you are entering Network Marketing it is because you are looking to earn extra income. The compensation plan is what the company states that a distributor must sell to start earning commissions.
For this you must take into account the percentage of the commission, the minimum income from which you would take one and of course, consider the income that you would take as a seller or as a recruiter.
The trick is to get a good balance in product prices and commission percentage. Thus attracting both customers and distributors.
So far my tips to start working or get started in the world of Network Marketing. If you have any questions, don’t forget that at NeoAttack we will answer all your questions and guide you through the world of business and marketing.