By Douglas Blackley
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.
Most compensation plans in the network marketing business are based on the hierarchy of their system. Many are so complex that its nearly impossible to understand how you get paid. Other plans are pretty simple and straightforward so any ordinary person can comprehend how they will be paid.
If you are contemplating joining such a company, be sure to do your due diligence in exploring the compensation plan. Many of these companies require that you sign up for a monthly shipment of goods or services to maintain your affiliation status. You should be able to understand how much money you will have to invest before you begin to receive compensation to offset your expenses. Otherwise you may find yourself in a situation where you can't afford to continue to operate and are at a loss. A large number of people fall prey to this every year so a word to the wise should be sufficient.
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.
Therefore, if you are contemplating joining a network marketing company, you should do your due diligence regarding the training necessary to succeed as well as the financial due diligence. Failure to succeed in training 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.
If you pursue a network marketing business, I wish you the greatest success!
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.
Most compensation plans in the network marketing business are based on the hierarchy of their system. Many are so complex that its nearly impossible to understand how you get paid. Other plans are pretty simple and straightforward so any ordinary person can comprehend how they will be paid.
If you are contemplating joining such a company, be sure to do your due diligence in exploring the compensation plan. Many of these companies require that you sign up for a monthly shipment of goods or services to maintain your affiliation status. You should be able to understand how much money you will have to invest before you begin to receive compensation to offset your expenses. Otherwise you may find yourself in a situation where you can't afford to continue to operate and are at a loss. A large number of people fall prey to this every year so a word to the wise should be sufficient.
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.
Therefore, if you are contemplating joining a network marketing company, you should do your due diligence regarding the training necessary to succeed as well as the financial due diligence. Failure to succeed in training 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.
If you pursue a network marketing business, I wish you the greatest success!
Best regards,
Doug
About the Author:
Looking to find the best deal on network marketing, then visit www.example.com to find the best advice on internet marketing for you.
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