Are you confused by all these types of network marketing or multi level marketing terms being banded about all over the Internet? In this article called “what is network marketing about” I will explain these types of opportunities so you can decide if network marketing is right for you.
What Is Network Marketing About
Network marketing is a business model and an opportunity for anybody to build a business from home selling all types of products that the company in question produces and sells through distributors, these types of business have grown exponentially mainly due to the rise of the internet. There are a number of well-established and profitable network marketing companies that you may have heard of like Avon and Tupperware who have been around fro the last 4 decades.
The main reason that this business model is so popular is that it benefits both the company that creates the products and the person selling the products for the company. Network marketing is not really far away from affiliate marketing where you are selling someone else’s products and earning a commission for every sale you make.
The main benefit for the company is that it has a whole team of people out there promoting its brand and selling its products and the company only has to pay you if you make a sale, you as the distributor are effectively self-employed, and this benefits both parties.
Once you establish yourself as a network marketer and are successful at selling their products you can also build your own team of people under you who will then go out and sell products where you will earn a commission for every sale they make.
If you are successful at this you will be earning money while you sleep as every sale someone in your team makes a sale you will earn a commission on their sale.
It’s not too hard to realise that the real money in network marketing is in building your own team of successful distributors and you will start earning passive income, which is the dream of every network marketer and online marketer alike.
What Is A Network Marketing Business
Below is a list of genuine network marketing companies
Amway, short for American way sells home health and beauty products and is the biggest multi level marketing company in the world and currently earns $9 billion in yearly revenue.
With an annual revenue of $5.7 Billion dollars Avon is one of the longest established and successful multi level marketing business in the world, founded in 1886 and re-named Avon in 1939 it has over 6 million people promoting and selling its products using the network marketing business model.
Specialising in nutrition products and with and annual revenue of $4.40 billion its one of the giants of the MLM world with 2.3 million distributors all over the world.
A German based direct sales company established in 1883, specialising in household products, cosmetics and floor coverings with over 660,000 sales reps around the world it has an annual revenue of $4.1 billion
An Asian MLM company that has an annual revenue of $3.9 Billion and sells mainly a variety of health and beauty products taking its inspiration from traditional Chinese medicines.
Established in 1963 and one of the most well-known MLM company in America with over 600,000 distributors all over the united states it has an annual revenue of $3.25 Billion focusing on the beauty and cosmetics niche.
Founded in 1969, Natura is a Brazilian company promoting and selling natural beauty products, it has 1.5 Million consultants as well as physical and online store around the world
Selling cosmetics as well as skin care and household products, its mainly based in Asia and has a revenue of 2.96 Billion
Specialising in anti ageing and skin products, Nu Skin was founded in 1984 in Utah, it has a revenue of 2.28 Billion and according to its own income statements the average consultant earns about $150.0 per month
Probably one of the most well-known companies in the western world, founded in the 1950’s its one of the pioneers of direct selling and the MLM business model. Allowing people to earn a living from home. Tupperware is a household storage solution and its still thriving to this day with a revenue of 2.93 Billion.
What is the difference between Network Marketing and Multi Level Marketing
In truth there really is no difference between the two, network marketing and multi level marking are the same, the term network marketing came about because multi level marketing sounds more like a pyramid scheme and usually scares people away as they think MLM is a scam.
The difference between a real network or multi level marketing company is that a pyramid scheme has no products and is illegal under law. Its always worth doing your homework if you want to get involved in any business opportunity.
Many pyramid schemes now dress themselves up as real business opportunities by creating some kind of product in the from of training which they sell.
There are many make money online business opportunities that are really giant pyramid schemes dressed up as genuine business opportunities because they have created some kind of product to sell. Once you take the firsts step into these type of so called opportunities you will be bombarded with up sell after up sell, and in some cases these up sells will be up to $20,000
How To Spot A Pyramid Scheme
Is Network Marketing For Me
- Allows People To Work From Home
- It can be very lucrative if you do it right
- There are no products to develop
- It can produce a residual income
- Requires a lot of hard work and dedication
- You need to be someone who is self motivated
- Make sure you do your research and go with a company that has good a compensation scheme, as lot of them are not very good
- The old-fashioned way of network marketing, cold calling friends and having meetings in hotels will never bring you any real income, the top earners generate all their leads online.
- The only way that you will ever earn life changing money is for you to build a successful team below you, this is how the top earners make all the money within the network and multi level marketing business model and they generate all their leads online, not by cold calling friends and family.
Network Marketing Tools
To be successful at network marketing in today’s modern, internet and social media driven world you will need to get to grips with the basics of online marketing and more importantly how to use different online marketing tools, network marketing is no different to any other business when it comes to the online world.
All business want customers and leads and with nearly 4 billion people all over the world now connected to the Internet, you can gain access to massive amounts of prospects for your business through the use of online marketing.
Network marketers who want to really succeed have to master the tools of the online world.
The Most Important Online Tools and skills That Will help You Succeed In Network Marketing
- Facebook advertising and Facebook groups
- U tube videos and advertising
- Auto responders (Aweber, Get Response)
- Understanding content creation
- The main social media platforms
Getting Trained In The Online Marketing World
If you really want to succeed at network marketing then your only avenue for real success to utilise the internet, the old model of marketing to friends and family really is over. Within the online world you have access to billions of people, but you have to learn how to use online tools and how to create a presence online.
Marketing is a skill like any other and its a valuable one, the only problem with the internet is there is too much choice and all the information is spread out all over the place. The real big earners are the ones who build teams of people underneath them using online methods to get unlimited amounts of leads into their business.
In addition to this, trying to learn all the relevant skills can be a lonely and frustrating journey, so finding the best platform is essential, there are a few of them out there but there are so many scams and people who just want to charge you a fortune for get rich quick schemes dressed up as training and online business opportunity’s.
The All In One Online Marketing Training
FREE To Get Started
The biggest mistakes people make in online marketing.
The first big mistake is targeting the wrong people, most people who are new to marketing, don’t realise that the right targeting is the difference between success and failure. You should spend about 80% of your time understanding your potential audience before you even start any marketing campaign or create any content. Understanding your potential audience is the key to success and all those who succeed spend most of their time in this area.
You need to be targeting people who are hungry for what you are offering, if you are trying to build a team under you then your advertising and marketing campaign needs to target those people and no one else, paid advertising is expensive if you get it wrong, and creating content is hard work and time consuming, a lot of time and money can be and often is wasted targeting the wrong people or creating content that does not convert.
Here is an example of how to target people who are interested in network marketing, if you are running adds on Facebook then part of your advertising campaign could be to target followers of a successful network marketer, this is entirely possible on Facebook and is a smart way to laser target the right people, if you are trying to build a team under you.
Eric Worre is a highly successful network marketer so anyone following him and consuming his content must be interested in network marketing, so if you target his followers in any advertising campaign then you chances of converting people within your offer has now increased dramatically.
Success Leaves Evidence
Go online and start to research successful network marketers, follow them and get to know what they are doing, what sort of content are they producing, if possible sign up for any of their e-mail marketing campaigns and let them send you their free content and emails, this way you can see in real time for free what other successful network marketers are doing. This takes all the guess work out of your own marketing campaigns.
Learning what other successful network marketers are doing to generate leads is the smartest move you can make if you want to do the same, so often people struggle alone and fail over and over again, when all they have to do is really duplicate or model what other successful people are doing in their industry. With access to Google you have a wealth of information at your fingertips, most successful marketers will have a large social media following which you can tap into.
Spend time learning online marketing skills before you jump into the deep end especially if your going to use paid traffic, mastering this is s kill in its self, without the right skills there is a real chance that you may loose a great deal of money on advertising that simply does not work.
There are two things to take away from this article to understand what network marketing is about, firstly if you want to be one of the top earners at network marketing you will need to build a team below you as this can generate passive residual income.
Secondly the smart way to do this will mean generating all your leads online and so you will need to get familiar with the online marketing world and online marketing in general.
Generating leads online is skill that you will need to master, so getting the right training and education is all important.
Have you had any experiences, good or bad with network marketing or multi level marketing, if so I would love to hear about your experiences. If you have any questions about network marketing or online marketing please let me know in the comments section below