Wikipedia definition: network marketing is a way of doing business in which a sales force earns a commission not only for sales of products and services they personally generate, but also for the sales of others they recruit and bring into the business, which creates a downline of distributors and a hierarchy of multiple leveraged levels of compensation.
This definition is pretty straight forward. Individual sales of goods and/or services generate revenue. Recruiting others into your group to sell goods and/or services also generates revenue. Revenue flows to you from what you sell as well as from the sales made by recruits. Therefore, you have a network of 2 or more people selling the same goods and/or services creating revenue.
Almost all compensation plans in the network marketing industry are hierarchical in nature. Those at the top make the most and those at the bottom make the least. Many of the plans are so complex that the average person has a really difficult time understanding them. Others are simple and straight forward. In either case, it is necessary for you to understand how you will be paid.
Before joining a network marketing company you must do your due diligence regarding the compensation plan. Many companies require you to buy a certain level of goods or services each month to remain a member. You need to be able to determine how much money you'll have to spend before you start receiving income. Otherwise, you could find yourself invested so far that you can't continue the business. There are many people who experience this situation every year.
Skills in sales and marketing are required to succeed in a network marketing environment. Most newbies have no experience in these areas and are dependent on their new company to provide the training they need to succeed. Unfortunately, most companies don't provode training geared to teaching sales and marketing skills. Therefore the new member becomes frustrated and disgruntled and usually just drops out.
You have to ask yourself if you have the skills necessary to succeed at this new business as well as the financial resources necessary. Lack of skill can be just as devastating if not more so than financial failure.
Network marketing has created more wealth than any other single industry. It is highly profitable, provides amazing flexibility in time utilization, generates great camaraderie, generates great self esteem, and generates great psychological income from helping others to succeed.
Network marketing requires dedication and perseverance in abundance to succeed. There are no "get rich quick" schemes that succeed for very long. Building a network marketing business is achievable and the rewards of success are tremendous.
Should you decide to get involved with network marketing, I wish you the best.
Best regards,
Doug
This definition is pretty straight forward. Individual sales of goods and/or services generate revenue. Recruiting others into your group to sell goods and/or services also generates revenue. Revenue flows to you from what you sell as well as from the sales made by recruits. Therefore, you have a network of 2 or more people selling the same goods and/or services creating revenue.
Almost all compensation plans in the network marketing industry are hierarchical in nature. Those at the top make the most and those at the bottom make the least. Many of the plans are so complex that the average person has a really difficult time understanding them. Others are simple and straight forward. In either case, it is necessary for you to understand how you will be paid.
Before joining a network marketing company you must do your due diligence regarding the compensation plan. Many companies require you to buy a certain level of goods or services each month to remain a member. You need to be able to determine how much money you'll have to spend before you start receiving income. Otherwise, you could find yourself invested so far that you can't continue the business. There are many people who experience this situation every year.
Skills in sales and marketing are required to succeed in a network marketing environment. Most newbies have no experience in these areas and are dependent on their new company to provide the training they need to succeed. Unfortunately, most companies don't provode training geared to teaching sales and marketing skills. Therefore the new member becomes frustrated and disgruntled and usually just drops out.
You have to ask yourself if you have the skills necessary to succeed at this new business as well as the financial resources necessary. Lack of skill can be just as devastating if not more so than financial failure.
Network marketing has created more wealth than any other single industry. It is highly profitable, provides amazing flexibility in time utilization, generates great camaraderie, generates great self esteem, and generates great psychological income from helping others to succeed.
Network marketing requires dedication and perseverance in abundance to succeed. There are no "get rich quick" schemes that succeed for very long. Building a network marketing business is achievable and the rewards of success are tremendous.
Should you decide to get involved with network marketing, I wish you the best.
Best regards,
Doug
About the Author:
Learn more about network marketing. Stop by Douglas Blackley's site where you can find out all about internet marketing and what it can do for you.
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