The Major Reason for Network Marketing
When a new product is sent out into the world for sale the retail cost to the consumer has increases by HUNDREDS of percent from the original manufacturing cost. To get a product to market it goes through several steps. There are national distributors, local distributors and retailers. There is also advertising, print, radio and TV to gain the awareness of the new product. All of these cost can run into the hundreds of thousand of dollars, sometimes millions before 1 unit is even sold.
So Why Referral Marketing?
When the consumer buys direct from the manufacture the middle man is cut out. This type of marketing is known as Direct Sales. Referral marketing or Word of Mouth marketing takes the money normally spent on advertising and passes it on to the end consumers. This type of marketing is the most cost effective and reliable source of sales. How many times have you said - Where is a good place eat?, or How was that movie?
What does this mean to me?
In Referral marketing the money that used to be spent on advertising and distribution can now be put back into the consumers hands for the Referral advertising of their products. You can build a network of consumers, and business builders around the world and when a sale occurs you will benefit. Sales can occur 24 hrs a day! in traditional business you only get paid for the hours you work. With referral marketing in a short time networks of people can grow to the thousands, all putting in small amounts of time but together 1000's of hours of work can benefit you!
Is this one of those pyramid things?
The first question asked by most everyone when confronted by a friend or family member is this one of those pyramid things? YES, Any group or organization since the start of time has been a Pyramid structure. All business, Governments, even the Church are structured this way.
Why, because it works!
Is this were the guy at the top makes all of the money?
The next most frequently asked question is usually - Is this were the guy at the top makes all of the money?. This question is asked buy people who do not understand the SYSTEM of Network Marketing.
All Network Marketing compensation plans are nothing more then a SYSTEM!.
There are usually 2 requirements on how to earn income There is personal requirements and group requirements. These are in place so the people who work the system get the rewards. No one above you or below you will be able to stop you from achieving your goals. Network Marketing is not about investing money it about investing time. Just because you joined, do not expect to sit back and let others build your business. The system is in place to protect the people working the business and deserve the rewards. Do a little earn a little - Do more Earn a lot more
In traditional business you can not say the same, sometimes your effort does not produce the upward movement in the company you work for. In fact The people above you may keep you down so they will have their job security. There is not much reason for the more experienced people to pass along their secrets to success. In Network Marketing one requirement is group success this means the experienced teach and help the inexperienced. When searching for your opportunity the product is the driving force or the fuel.
To refer a product it must do what it is promoted to do!
How can you tell? Simple, a quick and easy way to check is what is the company sales volume, Repeat orders, the number of distributors and how many years the company has been in business. How many countries your product is available for sale in. This tells you the potential for growth, the income opportunity and you long term opportunity to earn income for years to come.
Network Marketing is Nothing more then MICRO FRANCHISING
The initial cost to get involved is very small compared to the cost of an established franchise. But you get the same stile of support from the company. The one draw back is it easy to join and its also easy not to work the work the system.
Many large companies have thier own direct sales divisions, The most successfully investor in the world, Warren Buffet (the richest man in the world 2007) sees the value of moving goods and services this way. He owns 4 companies himself!
The most important part of Network Marketing is the people.
There are plenty of great products offered in the industry, There are many network marketing companies that have done business for decades. The system works, people don't! Many people earn Thousands of dollars a month and many more people are earning an extra $500 a month.
There's a first time for everything.
And network marketing is a great opportunity for people to have their first business, their first sales role, etc. My point is this, recognize it for what it is: it's a business, and you are a business owner. And if you've never owned a business before, if you've never done sales before, if you've never networked before, you need to learn about how to do so, not just from the network marketing experts, but from established experts in those fields.
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