How Network Marketing Works - My Understanding
Here is what network marketing really is, the way I understand it and from my involvement in different companies over the years. It is not complicated. Really.
1. The Company
Someone somewhere starts a company which produces products or services. I will stick with products. Let's say a food supplement. It is a great product that is going to make your skin look as young as a 16 year old's and it is proven.
2. Let's Sell This Thing
Obviously, the company needs to sell the product if they are going to realize their vision but they do not want to open shops, handle all the marketing, awareness and launch of the product so what do they do in order to sell the product?
3. They Want You To Do That
So they come to people like you and me and say "Hey, we have this great product which we would like you to sell to your networks" That is a fancy name for people you know. And they tell you, hopefully, that for every unit you sell you will make, let's say $20 so you only need to sell 5 to make $100 extra per month.
But they are not done yet. "If you find someone who would be willing to sell the product and they join the business, we will give you $5 for every unit they sell."
I know the maths may not be perfect but you get the idea.
4. Your NetworkSo off you go selling this product to everyone you know and don't know. Some buy some don't. That's the life of a marketer.
While at it, you are looking for more people who can join (usually at a fee) to be on the same sales team with you.
The company trains you on how to sell and you train the ones you find.
They literary decentralize just about every aspect of the marketing through you and your associates.
And they will share the profits with you.
Win, Win, WinEverybody wins. The company saves on its marketing budget because they have you and your friends as consumers, independent distributors.
Your customers get a product that adds value in their lives in some way or another.
Your marketing team has an extra income that makes a difference in their lives financially.
Some make it their full time career.
That, in my understanding, is how network marketing works.
What do you think?
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