Network Marketing definition is simply stated; a marketing strategy in which the sales force is compensated not only for sales they personally generate, but also for the sales of the other salespeople that they recruit. This recruited sales force is referred to as the participant's “downline”, and can provide multiple levels of compensation (Wikipedia).
Network Marketing, as you will learn in the video above, gives you great insight into why Network Marketing is such a brilliant way to market products from a company, and build a residual income stream as an individual.
First, let's look at how Network Marketing benefits companies trying to sell products;
*Through Network Marketing, companies are able to market their products with a direct percentage of revenue advertising expense. This means that there are no wasted dollars when trying to market their products. The company pays for their advertising after the product is sold.
*Network Marketing companies are able to alleviate the expense burden of having sales people in the corporate structure. This saves on; health insurance costs, physical building costs, and all other costs that go into housing employees.
*Products that are marketed through the Network Marketing model, if done right, tend to perform much better on the market versus sitting on a shelf in a store. Why, because “Word of Mouth” advertising is the most effective in the world.
Now, let's look at how Network Marketing benefits individuals;
*Individuals have the ability to build a business with little to no expense structure. Basically, we are given a golden key to build something magnificent.
*Building a Network Marketing business means that we are creating Residual Income. The highest form of income is Residual Income because it continues to pay long after the initial work has been done.
*Creating Residual Income means freedom. Freedom from bosses, time clocks, and worries. If done right, a Network Marketing business can build wealth for an individual and their family.
*It's fun! Building your own Network Marketing business is a blast. The relationships that are built are priceless. The amount of people that you end up helping is fantastic. And the money that can be created is far outside of what the normal reality of the world is.
Network Marketing has skyrocketed in terms of popularity over the last 50+ years and is only going to get bigger.
If you are the type of person that does not want to live the “check to check” existence and you realize that you have the mentality of an entrepreneur, then take a deeper look into the Network Marketing Industry.
Finally, if you are going to take a leap into this business model, make sure that you research the companies before you join. There are thousands of Network Marketing companies out there, so there are enough of them to make sure you make a great choice!
Ben & TheBalanceYouNeed