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Chapter 21 / Section 2 – How Does Network Marketing Work?
There are many sales methods that are popular among individuals and companies that trade their goods online, and although network marketing does have its detractors, it has proved to be a big success for many companies. Several successful businesses have used the workforce that can be accessed through this type of selling, and some companies such as Herbalife and Avon have based their business model on these types of sales. In order for a network marketing campaign to work effectively, it needs to combine good products, a motivated sales force, and a proactive business.
The Key Features Of Network Marketing
The most important part of network marketing is that the sales force that is used to sell the product develops as sellers expand their own networks, and then introduce others into the sales force. There is an incentive for those who are selling products to bring new blood into the sales force, as they will have the incentive of getting a small amount of commission from other sellers as well as the commission they receive from the sales they make themselves. The most successful companies that use network marketing are those that sell goods that can be easily distributed and delivered to the sellers who then pass on these items to the customers.
Increasing The Numbers In Your Sales Force
While many companies will start out with just a small number of people in their sales force, this will need to grow to become successful, and for this to happen the products need to be effective and the commission on offer should be quite good. When it comes to finding people to join your sales force, then social networking sites such as Facebook and Twitter can be very good, with plenty of websites and groups available online offering this kind of support. As your product becomes more successful, the sellers will naturally recruit others into the sales force, and motivated sellers will often be recruiting other good sellers into the company.
Why Companies And Sellers Choose Network Marketing
As a way of selling their products, network marketing has plenty of plus points for companies, as they will have individuals who are focused on selling their products, and these individuals will be very motivated by the commission they can earn. The best-sellers are those that embrace the product and its benefits, and these can often be very good for delivering repeat sales and will be trusted by the end consumer of the product. Those selling the products will also find many benefits to network marketing, as it can offer good commission rates and also allows people to achieve their sales around other commitments.
Problems With The Network Marketing Model
The main problem that many people will have to overcome when they are starting their own network marketing company is that there is a reputation of unethical practices in the industry. The counter to this is that there are also many successful network marketers. It is easy to develop a model that doesn’t work, so the key to success is to have a system that offers fair rewards to sellers while also delivering sales to the company that will allow them to deliver a profit.