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Posts Tagged ‘Delivery Strategy’

So What Precisely is Network Marketing?

Before we begin, we need to define what network marketing is, what multi level marketing means, and how direct sales fits into the equation.

Usually unhappily, the terms are used interchangeably.

A company which chooses to use network marketing decided to forgo the customary brick an mortar delivery model for one which is more personal through a rep network. It is common for such businesses to also have a multi level comp plan which pays out to the network on more than one level, but this does not apply to all.

So you can see from this definition that all MLM companies are in fact using the network marketing delivery model, but the converse is simply not the case. There are countless network marketing companies which prefer to just pay their distributors with a simple one or two tier comp model, and they can be hugely successful.

Obviously, network marketing is just a company model, a delivery strategy, and it really amounts to “micro-franchising”. The benefit for the network is that the enormous cost linked with a brick and mortar franchise can be avoided, and it offers a enormous upside possible.

A true win win if done right.

Here are the main advantaged for the rep in a network marketing group:

* as a rule very low start up cost
* for most there’s a enormous upside possible
* personal development and company training included
* no employees to worry about until very successful
* no complex book keeping required
* flexible work schedule, work when you want
* choice of who to work with, work with who you want
* not tied down to one location, work where ever you want
* no boss to hassle, demean and aggravate you
* amazing tax benefits – keep more of what you make

Of course to go along with the benefits, there are things to consider that make direct sales. The top three possible down side to consider when looking into starting your own company.

* must be responsible to your self
* you must be self motivated
* must be creative in solving problems
* is your house too noisy?
* must rely on yourself for motivation, focus
* must learn to keep reasonable documentation

Personally I think the advantaged far out way the downsides, but the fact of the matter is not everyone is cut out to be an entrepreneur.

Network marketers who are serious about building a company should be treating it like a company and do what other successful entrepreneurs do to build their company.

What is that, you ask?

If you study the success habits of top leaders in any industry, you’ll discover that all of them are frequently reading and learning about company fundamentals, staying current on the latest sales and marketing strategies, and spend time hanging out with and networking with their peers. They are frequently striving to create more value which will in turn enhance the bottom line.

Treat it like a company, and you can create substantial success.

Treat it like a hobby and go broke.

It’s as simple as that.