Did you know that half of the consumer goods purchased in Japan are bought through marketing networks? Network marketing, particularly in these tough economic times is the wave of the future and the good news is almost anyone with an entrepreneurial spirit can get in on it cheap. If you have a desire to start a part time business that can grow into a full time opportunity, you really want to check out this method of selling from home. But before you race off and sign up with an outfit, check out the answers to these seven frequently asked questions about network marketing so you can make an informed decision.
1. Isn’t pyramid marketing illegal?
The short answer is yes it absolutely is illegal but network marketing is not a pyramid scheme. They both involve building networks but a pyramid is based solely on recruiting new member and does not market or sell any product. Network marketing is a method of cutting out the middleman between the manufacturer and the ultimate seller.
2. What is “natural” network marketing?
This is the traditional method of selling goods. If you think about it, almost everything that is sold is set up in this model. A natural network includes the manufacturer, advertisers, wholesalers and jobbers, retail distributors, sales person and finally the consumer. Each of these elements get a bite out of the ultimate retail price.
3. How does network marketing differ from a natural network?
The big difference, the whole reason why this is such an amazing way to market, is that the network only consists of two elements that take a “bite” out of the end retail price and that’s the manufacturer and the sales person. All the middlemen are eliminated. What’s the advantage to the manufacturer? They get a bigger profit while at the same time being more competitive by offering the product for less. The consumer enjoys a lower price and the convenience of shopping online.
4. So what’s in it for the sales person?
Now you’re getting into an area that you really have to evaluate before you get into a program. Network marketing works much the same as the old Amway MLM. The parent organization provides the logistics, training and support to it’s network of sales people and takes a piece of the pie for its efforts. Sales people recruit other sales people who in turn recruit even more and it depends where you are in that line as to how much you make. Check out the commission terms of any program carefully before making a commitment.
5. What is the typical start up costs to get into network marketing?
This will vary by organization but figure $50 to $500. As far as what you need to run the business all you have to have is an internet connection, a phone, a pad of paper and a desire to succeed. This is an amazingly low threshold when compared to franchises or opening your own shop.
6. I don’t know anything about this business, how can I learn?
This is another area that separates the good networks from the bad. The parent should provide a wealth of educational tools like videos and teleconferences. Mentoring by the person who recruited you is also extremely important. And lastly, the parent should provide the business tools, including software to track your sales and marketing efforts.
7. How quickly can I make money with a network marketing company
Make no mistake; this is not a get rich quick scheme. This business is just like any other legitimate business you get out of it what you put into it. However, if you are focused, the monetary rewards can be huge. More importantly, you’ll be in a position to leave your full time job and be your own boss enjoying all the benefits that come with that.
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