A business model which is highly opted by people interested in home-based earning, which works by building a network of representatives or customer base, which is legal but has a bad repo, and which is perceived to contribute to “large payout with no work”. Can you guess which business model are we talking about? Yes, it’s Network Marketing.
Started in 1855, this business model exists till date and has expanded into multiple dimensions, from selling products to Cryptocurrencies. There are more than 60 Active Network marketing companies currently existing with different objectives and many new companies are emerging every year in this domain. During these many years, this business has earned negative perception because of representatives who themselves are not clear with the objective and then pass on the same information to other prospects, hence impacting image when expected benefits are not generated.
Before we proceed further, let us first understand what Network Marketing is and why companies or customers opt for such a business line.
Network Marketing, a business model that functions by building a network. This marketing method is mostly adopted to boost sales and create a direct customer base.
It is mostly picturized as a Pyramid where the process flow starts from the team above (called as ‘Upline’) to the base consisting of end-users (also known as ‘Downline’).
However, all businesses in this world exist with the same Pyramidal structure which starts from someone who offers the product or service, ends with customers and in between players contributing to the entire business flow. Isn’t it?
Now, let’s jump into the section where we will try to discuss avenues of Network Marketing such as –
- Why Network Marketing?
Have you ever wondered why many companies opt for this business model instead of the conventional marketing model, printing, media or digital?
The reason is very simple, the budget required for advertising or marketing via the above-mentioned channels is saved and distributed from Upline to the Downline.
- Who should be part of the Network Marketing business?
This business is for those who are strong in taking tough decisions, have effective communication required to explain the business objective to prospects. And this business is especially NOT for those who believe “there is no hard work involved in this business”.
- Who should you target to approach for building a network?
Your target person should be someone who is looking for the product or service which you are offering, a person who understands the business requirements and wants to accept the offer. Converting those who do not have a clear picture of your offers, would most likely discontinue after some time.
- What are the benefits of being in this marketing business?
A team with defined goals, objectives and shared task of creating a well-thought network will most likely succeed in further extending the network and in return help to earn with compensations shared among the members.
- How to achieve long-term goals and benefits?
Keeping your team motivated and enabling team members to think and believe as you do is a tough task and this can be achieved by showing them the positive impact and ensuring each team member is aware of goals and objectives.
Conclusion There are many challenges but also benefits that can be achieved being in the Network Marketing business. Such a business model not only helps in improving sales but can also help in creating and running own hands-free business. For example, ONPASSIVE is a Unicorn company that helps its customers to put their business in auto-pilot mode with the help of an automation marketing tool.