This business is for you if you are:
looking to diversify your business(es)
looking for business opportunities with low overheads
burnt out and drained of being an employee/on a job
looking for additional source of revenue
not satisfied with fixed salary
finding it hard to balance between work and life
simply wanting to grow your wealth
Starting out?
Looking for additional income source?
Which business to venture into?
What are the business opportunities?
Is there a perfect business model out there?
Have you thought of Network Marketing?
DO NOT EXIT UNTIL YOU HAVE READ
AND REALIZED WHAT IT IS ALL ABOUT !
What is Network Marketing
Is Network Marketing a scam
Why people shun Network Marketing
Is Network Marketing a scam? Why people shun?
Why network marketing companies do not take the conventional marketing route
Growth in global Network Marketing revenue
An opportunity in Network Marketing
What is Network Marketing?
According to Investopedia, Network Marketing is defined as "a business model that depends on person-to-person sales by independent sales representatives, often working from home. A Network Marketing business may require one to build a network of business partners or salespeople to assist with lead generation and closing sales".
These sales reps, also known as Independent Distributors, not only promote directly to consumers. As an upline, just like most business organizations, they also enrol new sales people as their downline to form tiers within their own network. As these people are not salaried persons marketing the company's products or services, they earn commissions from direct sales as well as on the sales that their network make (the indirect sales).
There is usually no retail outlet to promote the products or services. (Hint: No rental cost.) Network Marketing distributors go about reaching out to consumers instead of waiting for consumers to show up. Thus, at times, it is also known as "Direct Selling" or "Direct Marketing".
Is Network Marketing a scam?
Often, Network Marketing is commonly referred to as Multi-Level Marketing (MLM). The general public often like to associate it with the Pyramid Scheme (which is illegal) due to some similarities in how the network of sales people is being built and how compensation is being paid.
Several notable businesses, such as the real estate and insurance, are essentially and have structures that look like pyramids but are not.
The guy at the top of the agency brings in new agents to promote real estate services or insurance policies. The agency boss over-rides on the commissions earned by the real estate and insurance agents.
The hallmark of a pyramid scheme is the promise of sky-high returns in a short period of time for doing nothing other than earning from hiring downlines and getting others to do the same. A pyramid scheme probably has no or low quality product or service to sell.
Network Marketing or MLM are both legitimate and legal business structure as there are tangible products or services being sold to real customers. There is a legitimate set of rules and contractual obligations for distributorship.
Why people shun Network Marketing?
Promises of wealth and financial freedom by network marketing companies often appeal to people to want to join. While network marketing is not illegal by definition, one should study and analyze the background and history of the companies and their business practices.
- How long has the company been in business
- Is the company listed in the local Direct Selling Association (DSA) registrar
- Does it have a positive reputation for customer satisfaction
- Has the company been sued for deceptive business practices
- What is the uniqueness about the company and its products or services
- What makes the product stand out and has an affinity with users
Also find out:
- The company’s compensation structure, its terms and conditions, fairness
- The basis for claims about how much money one can make
- The potential and possibility for a downline to earn more than his upline
- A joiner’s potential expenses
- Presence of support and training structure
- The name and contact detail of the manager in the company and the address location of the nearest office/branch
- Where the compensation for enroling new distributors is more than it is for selling products to consumers, AVOID such a plan.
If a network marketing company is not operating like a pyramid scheme, it will pay its distributors base on their direct sales to retail customers, and the sales by their downlines to retail customers (indirect) without having to rely soley on continuous enrolment of dues-paying members in order to stay in business. In other words, the income of the distributor (the upline) can be sustained with direct sales alone.
Why do companies in Network Marketing not take the traditional marketing route?
Retail products such as Sony, Nike, Chanel, Coca-Cola, etc are physically distributed via wholesalers, distributors, resellers and/or retailers. The products are displayed on shelves and are marketed through media channels via advertisements in newspapers, on TV, billboards and on social media. Celebrities are some times engaged to influence purchase decisions. Consumers are constantly being bombarded with lots of these voices so much so that they often become fragmented or turned into noise.
Through person-to-person as in Network Marketing, the features and benefits of the products are better communicated to the consumers, especially if the product is complex. Through word-of-mouth, it is more efficient and powerful. “Hey, this product works for me. Try this…” works many times more than media advertisements. Sub-consciously, it is the powerful tool of 'sharing' when one benefits from the product and would like to recommend to people around him or her.
Commensuration wise, instead of paying to wholesalers, retailers, advertising agencies, influencers and landlords, why not pay out to the independent distributors who have diligently explained the features and benefits of the products?
What do you think about Tesla's business model?
Did you realise that Network Marketing offer some people a "job" that allows them to earn money without neglecting their children and families?
The global direct selling industry conducted business of about US$186.105 billion in 2021, up 1.5% compared to previous year. There were 128,150,582 sales representatives in the direct selling industry in the same year (source: wfdsa.org).
As shown, the direct marketing industry is a huge one and is thriving.
High failure rate
There are numerous reports and articles that claimed many failed in Network Marketing and did not make any profit, some with published statistics to prove so. It is true because Network Marketing is like any business - the failure rate is high. People jumped in thinking of making a quick buck without studying the company, the product, and failing to reach out to the market.
Yet, there are distributors who have joined the Network Marketing industry and have made it. They researched for the targeted market, adopted time tested business building activities and marketed to the market. Their success is the result of quality and hard work that they put in.
The opportunities in Network Marketing
Network Marketing can be an attractive business proposition to many people. It offers the opportunity for one to take part in a system for distributing great products to consumers. Unlike starting a business from scratch, the independant distributor has the support of an existing direct selling company that supplies the products and provides the necessary training. There is no need for a shop space nor warehouse. It is usually home-based. No rental fee. No cost of holding goods. The business has literally zero or very low overhead cost. It offers certain individuals the flexibility of time as the business is not restricted to 9-to-5.
Network Marketing is an ideal start-up for people who wish to go into business.
Which Network Marketing company then
It is common to find most Network Marketing companies require the purchase of expensive starter kit as a pre-requisite before one is able to come on board; some require renewal of membership annually; many require monthly auto-shipments in order to stay in the business. Purchased products that remain unsold may end up being stacked as ‘inventory’ in one’s home over a period of time.
The requirement to meet minimum sales targets within a certain time frame are not uncommon, failing which the prevailing rank and the points that have been accumulated in the past shall be reset. Members may feel pressured to meet these by purchasing additional product to meet this criterion. Once again, the inventory builds up at home.
Then there are these 'legs' that the distributor needs to build in his network of downlines. The role of each leg depends on how the Network Marketing company designs its compensation plan. Some require distributors to build even or balanced number of downlines on each leg. Some plans simply demand to recruit as many downlines as possible because of low overriding commissions. Others incenticise the distributor to support their downlines in building their own legs; some require to build as many legs as possible in order to be rewarded.
Are there no Network Marketing companies that are different?
Struggling to Maintain Your Account
Perhaps, you are already in a Network Marketing or MLM business but have made little progress. You are having difficulties in keeping up with the requirements such as:
What if... there is a company that offers:
No monthly qualification nor autoship
No annual fee
No inventory to carry (dropship model)
No rental of premises in order to operate the business
No time limit on rank advancement and on accumulated sales
No reset nor drop in rank when paused or inactive
Yet, you can remain in business.
On top of that, the Company:
Provides a patented compensation plan that pays for attaining direct and indirect sales
Pays royalty / monthly lifetime commission for legacy ranks
Allows international / cross-country sponsorship for scalability
Allows the business to be will-ed to next-of-kin
Warning: This is not a fly-by-night business. The company has been around for almost 50 years, has 42 offices in 25 countries and is still expanding. It is registered under DSA and has accreditations from ISO and WSG.
If you would like to find out about this Network Marketing platform, you can contact us. We will connect with you via Zoom and also share with you its amazing proven product that is solely manufactured and tested in Japan.
DO NOT MISS!
Hey! This is YY, an independent distributor.
Like many of you, I had previously dealt with a number of Network Marketing or MLM groups. I did miserably in all as there were little to no mentorship from my sponsors, the monthly autoships were expensive and can't pause, the products had poor unique selling propositions despite the hypes. There was one that even folded eventually!
I must also admit that I did not treat them as a business then...
With the experience, today, I am wiser and am more focus than ever to make Network Marketing work for me!
Armed with knowledge on digital marketing, I am currently doing this business off- and on-line, for sustainability and scalability. This is quite like a franchise business aka MacDonald's without rental and staffing.
Feel free to contact me as I am looking to offer a lift to whoever is struggling right now or looking for additional source of income.
By the way, we have also now had the marketing right to a new product with a patented technology. The product has just been launched. Yet, we are way ahead in the arena and we need help. If you have the vision and are looking for break-throughs, contact us today!
To your success!
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