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Chapter 21 / Section 3 – Can Network Marketing Work For Your Business?
Achieving online sales can often be quite difficult for those companies who are starting out, or are looking to expand their market share, and while network marketing isn’t appropriate in all cases it certainly has seen great success for many companies. The sales team in these type of sales are actually independent of the company producing the goods, and this is a business model that has really seen companies such as Avon and Amway achieve great success. There are many features needed to be a successful network marketing company, with motivating the sales force and delivering good products at the heart of the proposal.
An Overview Of The Network Marketing Model
The network that is mentioned in network marketing is that of the sellers who actively recruit others into the sales force to help sell the same product, while also achieving sales of their own. The reason that sellers will want to do this is that they will not only receive a commission from their sales but that a proportion of the commission earned by the person they have recruited will also be passed to them. The best products for network marketing sales are usually relatively small and easily delivered across the country to the individual sellers, who will then pass on these products to their customers.
Growing Your Sales Force
In the majority of cases, companies that sell their products through network marketing will need to see a growing sales force to deliver the growth in sales that they will hope to see, and offering a reasonable commission will certainly help with this. If the network of sellers isn’t growing quickly enough, there are groups of sellers that you can reach on Facebook and similar accounts on Twitter. The greater the success of the product itself, this will also draw people to the sales force, and a good motivated seller will often be a great source of referrals of other people who can sell in a similar way.
The Advantages Of Selling Products In This Way
For individuals who are selling products, there are clear advantages as they will have the freedom to work at times that are appropriate for them, and it offers the flexibility to achieve their commission around commitments such as children or caring for relatives. The top salespeople will usually be those who find the products useful and valuable themselves, and believing in what they sell will usually see significantly more sales. Companies who choose network marketing as a method of selling and distributing their products will have a motivated workforce, and this will usually save on the costs of having salespeople on the payroll of the company.
The Disadvantages Of Network Marketing
Network marketing is a sales method that has been quite controversial, and there are plenty of sellers and companies who have acted unethically in the past. There are also issues when it comes to those who are more interested in recruiting other sellers rather than actively pursuing sales themselves. When preparing to create a network marketing sales and distribution chain, it is vital that sellers who are generating the sales for the company get a fair reward, while also achieving prices that allow the company to be profitable.