What Is Network Marketing?
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.
The definition is pretty simple. Each individual produces revenue on the sales of goods or services. Recruiting additional people to sell the goods or services also produces revenue. You get paid not only on what you sell, but what recruits sell as well. This results in a network of 2 or more people engaged in selling the same goods or services. So, you are engaging in network marketing.
Companies who participate in network marketing generate compensation plans based on the hierarchy of their systems. Some are so complex its almost impossible to understand. Others are simplistic and straightforward so the ORP (ordinary, reasonable, and prudent) person can understand them.
Are you thinking about joining a network marketing company? If so, you must do your due diligence in understanding the compensation plan. Many companies require you to sign up for monthly purchases of goods or services to maintain your membership. You really need to understand how much money you're going to have to lay out before you receive income or you may be upside down to the point where you can't afford to remain involved. Many newbies fall prey to this situation every year.
Skills in sales and marketing are required to succeed in a network marketing environment. Most newbies have no experience in these areas and are dependent on their new company to provide the training they need to succeed. Unfortunately, most companies don't provode training geared to teaching sales and marketing skills. Therefore the new member becomes frustrated and disgruntled and usually just drops out.
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 has created more wealth than any other single industry. It is highly profitable, provides amazing flexibility in time utilization, generates great camaraderie, generates great self esteem, and generates great psychological income from helping others to succeed.
Dedication and perseverance are required to build a successful network marketing company. "Get rich quick schemes" are short lived. It is possible to build a successful network marketing business and to enjoy the great rewards possible.
I wish you the best of success should you pursue a future in network marketing.
Best regards,
Doug
The definition is pretty simple. Each individual produces revenue on the sales of goods or services. Recruiting additional people to sell the goods or services also produces revenue. You get paid not only on what you sell, but what recruits sell as well. This results in a network of 2 or more people engaged in selling the same goods or services. So, you are engaging in network marketing.
Companies who participate in network marketing generate compensation plans based on the hierarchy of their systems. Some are so complex its almost impossible to understand. Others are simplistic and straightforward so the ORP (ordinary, reasonable, and prudent) person can understand them.
Are you thinking about joining a network marketing company? If so, you must do your due diligence in understanding the compensation plan. Many companies require you to sign up for monthly purchases of goods or services to maintain your membership. You really need to understand how much money you're going to have to lay out before you receive income or you may be upside down to the point where you can't afford to remain involved. Many newbies fall prey to this situation every year.
Skills in sales and marketing are required to succeed in a network marketing environment. Most newbies have no experience in these areas and are dependent on their new company to provide the training they need to succeed. Unfortunately, most companies don't provode training geared to teaching sales and marketing skills. Therefore the new member becomes frustrated and disgruntled and usually just drops out.
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 has created more wealth than any other single industry. It is highly profitable, provides amazing flexibility in time utilization, generates great camaraderie, generates great self esteem, and generates great psychological income from helping others to succeed.
Dedication and perseverance are required to build a successful network marketing company. "Get rich quick schemes" are short lived. It is possible to build a successful network marketing business and to enjoy the great rewards possible.
I wish you the best of success should you pursue a future in network marketing.
Best regards,
Doug