Multi-level marketing (MLM)or Network Marketing is one of direct selling forms.In this highly competitive business world, it would not be possible to market even popular products without proper network marketing and most of them use facebook for their network marketing.Network marketing as a new marketing strategy, brings more and more broad developing space to Modern Corporation with the advantages of extensive radiation, low investment and quick effect. In addition to sophisticated forms of online marketing like search engines and online advertising, Community, interactive and other new forms of marketing have also emerged. Many Chinese immigrants start their entrepreneurship business by joining major network marketing businesses in Western host countries. MLM has become a very important part of corporate marketing strategy. With the depth and the development of network marketing, how to evaluate the performance of network marketing business has become an important issue. This book focuses on the matter and shows benefits of network and introduces models of MLM business entrepreneurial action and also its benefit such as reducing the cost of advertisements with a success example.
Network marketing,New bocome Is one of the fastest-growing business models of the past few decades. Between 1993 and 2003, total direct selling revenues grew by 7.1% annually, dramatically above the rate of growth of the economy — and of total retail sales (according to the Direct Selling Association).
The most prominent examples of direct selling companies include Amway, Avon, Mary Kay, Nu Skin, and Herb life, which recently went public. In 2003, U.S. total direct selling sales totaled more than $29 billion, or almost 1% of the over $3,397 billion for total U.S. retail sales (U.S. Census Bureau).
Every business is a relationship-based business. So says John Milton Fogg, founding editor of Networking Times, author of The Greatest Networker in the World, and one of the most successful teachers of network marketing. You cannot sell an inferior product with a superior relationship, but you need at least a functional relationship to sell your product. That is particularly apparent in multi-level marketing, an industry built around belly-to-belly sales.
Think analytically about your network. Shaul Gabbay, in his book Social Capital in the Creation of Financial Capital: The Case of Network Marketing, reports that the fastest-rising group of entrepreneurs [of the direct selling representatives whom he studied] were those who had initial weak ties to dense networks. In other words, successful salespeople penetrate an untouched market, and then work to gain a high market share in that market. This is easier to do if that untouched market is highly dense; everyone in it knows all the players. Why? Because word of mouth in that type of network will spread more rapidly about the value of your product or service. This principle is particularly evident in network marketing, an industry where “networks go to work.” However, the same idea applies to almost any business. One mistake some network marketers make, as do many other sales people and marketers, is thinking of everyone they meet as a prospect. In network marketing, this is known as the “Three-Foot Rule”, i.e., anyone within three feet of you is a prospect. But top network marketers don’t do this. Max Steinhart, creator of the “Success Online” training course for network marketers, says that it’s not just about figuring out when to make your pitch, but even if to make your pitch. “You just build relationships with a lot of people. Some will become prospects and some won’t,” he says. “There’s no timetable. If the time is right, you’ll know.”
New i'm going to tell you some information and statistics about network marketing :
- Over 103 million network marketers around the world!!
- Together we move over $183 Billion USD
- Top 3 are US, China, Korea
In fact, the biggest reasons why people are flocking to network marketing are time leverage, residual income, and tax benefits. Network marketing is one of the few businesses that doesn't require employees, yet enables the owner to leverage his or her time by building a network of independent businesspeople. This network, which purchases and sells products or services, generates a residual income for the owner. Unlike the income earned at a job, which stops when the work stops, residual income continues on long after the work is completed. As exciting as leverage and residual income are, boomers love the tax benefits of network marketing. Tax expert Sanford Botkin says that a network marketing home business can result in tax savings of $3,000 to $9,000 per year.
Thanks to the internet, people can now work from the comfort of their home, and within a few months to a few years, build a large international business. The income from this business will secure their financial future and provide more free time to truly enjoy life. The best part is that anyone can do it.
In the movie The Graduate, a young Dustin Hoffman was told that the future was in plastics. I'm here to tell you that the future is in network marketing, and that future is now.
Any business model that has achieved this kind of success probably has lessons that all business people can learn from. We define this family of business models as a method of distribution in which people are paid for sales volume generated by people they have recruited into the distribution network. 20% of American adults reported they are now (6%) or have been (14%) a direct selling representative — defined as “the sale of a consumer product or service, person-to-person, away from a fixed retail location.” In 2000, 55% of American adults reported having, at some time, purchased goods or services from a direct selling representative.
The network marketing industry is a particularly good industry for leveraging online networks. Steingart teaches people how to “make the world your warm market,” specifically by using online networks. He reports that when he instant-messages someone to start a conversation about potentially joining his distribution network, 50% of the people he contacts will respond to the conversation. More and more sales and marketing professionals will use online networks to accelerate their sales.
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