Network Marketing – Same as MLM?
Over and over again, people ask if network marketing means the same thing that multi level marketing means. Yes, it does but while the meaning is the same, the titles are often interchangeable.
You might even hear it referred to as networking online or network marketing. Those who sell the company’s products are often called independent contractors or distributors. What it means by independent is that your potential to earn is not limited by the company.
Though you’re working to sell products the company produces, you’re in business for yourself. It’s one of the fastest and least expensive ways to have your own business. Typically, those who get involved with MLM will take a product produced by the company (buying it at a fraction of the cost) and selling it for retail cost, thereby earning a tidy profit.
Legitimate MLM companies will pay you for the products you sell and for the products your downline also sells. You won’t earn money on head count. In other words, you don’t earn just because you get people to sign on the dotted line and become a distributor.
Before you get into MLM, make sure it’s a product that you fully believe in and that you think will help others, because it can become difficult to sell a product if you don’t believe in it yourself.
Take the time to know everything you can about the product or service. Learn how long it’s been on the market and what the success rate for it is. Find out who the top sellers are and what they did to reach that point.
Make sure you ask around about the company, see if others are pleased with the way the commission pay out is set up. Ask what the most any one individual has earned and what the average earnings are. Then, being honest with yourself, ask yourself if you believe you’d fit into the average category or if you have the determination and drive to rise above that level.
Get all your start up costs and fees up front so that you’ll know what getting into the business will cost you. There’s a big difference between a $50 start up kit and a $5,000 start up kit. Usually the reason the company has to charge for kits at all is because it contains samples of products as well as promotional materials.
ADVANTAGES AND DISADVANTAGES OF NETWORK MARKETING
One of the best advantages of network marketing is that you will feel like your own boss – without taking on the responsibility of starting your own company. You’ll typically be able to work out of your home and make your own hours, giving you the flexibility that many entrepreneurs love, with none of the risks. Another advantage is that you’ll gain skills you can use in any future endeavor, like developing instant connections with others, making persuasive presentations, cultivating and leading a team and effective follow-through.
The disadvantages of network marketing are similar to those for any sales business: It will take time to build your business, and a lot of people will tell you “no” before you start hearing “yes.” Competition can be fierce, so you must always be a step ahead. Never forget that you are still an entrepreneur, even though you’re part of a network marketing business. You must strengthen your resilience, build your brand, market yourself and innovate – just as you would if you started a traditional business.
HOW TO SUCCEED IN NETWORK MARKETING
Now that you know what network marketing is, it’s time to get started. Running a successful network marketing business doesn’t have to be time-consuming or complicated. You can create a breakthrough with a few simple steps – change your story, change your strategy and the rest will follow.