Your Networth in the Network
Network marketing isn’t a new concept but, the age of online business has for sure given it a facelift. Its forms range from personal selling to online affiliate marketing. And the types of distributor level from single to multi-level tier.
Understanding Network Marketing
Network marketing as a business model has been around for decades. It leverages the personal networks of individuals to grow a business or sell its products. Some well-known companies that successfully utilize this model include Nova, Avon, Young Living Essential Oils, Tupperware, and Oriflame. The idea is to use the networks or personal relationships to generate leads, convince consumers to make purchases, and recruit partners (more distributors).
Harnessing the potential in Network Marketing for Business
There’s a two-fold approach to the benefits of network marketing; to the company and distributor as below.
Network Marketing as a Sales Strategy
Businesses can utilize the three different models of network marketing. The single-tier/direct, double tier, and multi-level marketing. Applying the lead generation, recruiting, and training process to increase sales capacity. The process begins with finding new customers, then adding the customers-turn business partners to your network, and finally training them to locate and recruit new customers. The chain keeps building upon itself.
Leverage and Scaling Opportunities
For the entrepreneur plugging into network marketing, scaling is relatively simple though not effortless. The reason being first, the entry barriers like capital base are low, and secondly, proven working systems(training and support) are already in place.
Large companies and businesses have a massive network of employees and small business owners that source from them. In marketing, these connections can translate to sales numbers. If such companies apply the network model, they will have the leverage advantage.
91% of Gen Zers and 88% of Millenials in America are interested in the flexibility of starting and running enterprises. Network marketing is a flexible, low-risk, and low investment entrepreneurial opportunity perfect for young people and working professionals. They can effortlessly set up a network marketing business by signing up with reputable companies as independent contractors to either market or sell their products. The best part is all this can be on their terms, either full-time or part-time basis. The result is a win-win for both parties.
Advantage Over Traditional Business Ventures
The direct selling association ranks the appeal of network marketing as flexible work-life balance(65%), ability to buy favorite products at a discount(62%), entrepreneurial opportunity and additional income stream(62%), building networks(52%), career progression(41%), and accomplishment(23%). From this analysis, it is clear that there is more to reap from personal networks other than building a home-based business.
As stated, network marketing can be simple, not effortless. The competition is tough, so you have to step up your game. Brand yourself, aggressively market the products, and keep innovating to exploit its potential.