What is network marketing?

We say what is network marketing , direct sales business or network marketing as it is also known, the one in which companies offer their products or services directly to the consumer through independent distributors, ignoring the advertising itself and thus eliminating the chain of intermediaries that in a traditional distribution system make the product more expensive.

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Within what is network marketing, it is considered a business model or type of marketing qualified as micro-franchises that, among the advantages for those who undertake it as a promoter, has a very low entry cost with great income potential.

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Network Marketing: Example

Up to this point you may or may not have grasped the idea of what  network marketing is . But as always, things are better understood when examples are used. For you to understand and decide on this variant of marketing, look at the following examples:

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Many Marketing experts agree that Avon was the pioneer in multi-level marketing. It is the most popular company in terms of beauty products, personal hygiene and daily use, it effectively uses network marketing. It has a wide range given that it has been able to adapt to the constant changes in society and its needs. World News Spot

Previously, Avon salespeople were provided with a series of catalogs in which they displayed the available items. They select the items they thought would sell and go directly to the company to place the order. World News Spot

What are the implications of working with network marketing?

Companies that decide to work with this strategy can expand their reach and sell more without investing large amounts of capital. Generally, companies that use this strategy reduce costs, work with lower prices and a simplified sales process, since there are no intermediaries.

In turn, anyone who decides to work with network marketing should know that they have the possibility of having greater independence over their sales strategies and commercial actions , however they also have direct responsibility for the results they achieve. 

In network marketing, salespeople can set their own work hours, they don't have a direct supervisor and they don't have specific functions, but sometimes this can become a disadvantage.

Difference between a network marketing and a pyramid scheme

Due to their similarities, it is often difficult to differentiate if the proposal we receive is a business model with an mlm (multi level marketing) company or it is just a pyramid scam, despite the fact that the latter is prohibited in countries like the United States. World News Spot

It is classified as a scam if some kind of commission or compensation is received for the entry of a new user to the plan, on the other hand it is not defined as a scam if the compensation received is for the sale of a product or service. World News Spot

We have already clarified that in the marketing network, the benefits obtained are from the sale of the products and if more people are associated, the benefit obtained will be based on the sales of the products of those people and not for having them. referred business; On the other hand, in pyramid scams, the compensation obtained will be for including new members who pay an entry fee and, in turn, bring more referrals, so that at the end of these scams, those who are at the highest levels benefit more. of the pyramid. World News Spot

In conclusion, finding the best business option is a task that requires extensive research to find the best alternative, so it is advisable to learn much more about the subject, the courses are a good option. 

FAQS:

1) Why network marketing is better than job?

The reality is that you need to control your income streams as much as possible, and that is one freedom you give up for a weekly paycheck when you get a job. People in network marketing never have to worry about that – their income is solely based on how well they perform as well as the people they recruit under them. World News Spot

2) How to start networking?

• Come prepared with a clear goal in mind.
• Have some conversation starters ready.
• Introduce yourself to someone more experienced.
• Ask people about themselves.
• Practice active listening.
• Write notes after each meaningful conversation.
• Ask for what you want. 

3) What are the 7 skills of network marketing?

• Skill: Leadership. 

• Skill: Listening. 

• Skill: Relationship building. 

• Skill: Team building. 

• Skill: Sales.