Facts and Tips about Network Marketing for Starters
Network Marketing is a highly stigmatized term in today’s society. Whether it is referred to as ‘multilevel marketing’, ‘direct sales’, or even the traditional ‘pyramid scheme’, most people have a pre-conceived notion about this form of income. The majority of people consider network marketing to be a sort of ‘get-rich-quick’ pipe dream that is realized by only a small percentage of participants, the rest of whom are left with nothing to show for their efforts.
While individuals should educate themselves to guard against possible pitfalls, network marketing may prove a good fit to supplement or even completely replace another personal revenue stream. At is root, this system of income is simple. Instead of a company investing money into other more traditional forms of marketing, such as print or television ads, it passes this funding on to its employees in the form of commission. The commission is based on the number of units (be it a tangible product, ad space, etc) the employ is able to sell.
At the next stage, the employee is encouraged to recruit others to join the company as part of the initial employee’s team or ‘downline’. When you take time to review MLM companies and see all of the different items of interest; compensation plan, product line, company management etc – you will begin to see a pattern of things you look for in a quality company and business opportunity.
Because recruitment is another area where the company saves capital, the initial employee benefits by acquiring part of their team’s commission each time a sale is made. The same is true of even newer team members recruited by the initial employee’s team. As such, the original employee benefits increasingly as he or she adds employees, either directly or indirectly, giving rise to the rather unfortunate term ‘pyramid scheme’. There are several groups of people for whom a network marketing company may be particularly appealing.
Network Marketing Companies Groups of Interest
As social security runs out and pension plans cover only a fraction of the working population, recent retirees are increasingly concerned with financial security. Because many network marketing efforts can be managed from home, this type of revenue may be a good source of income for this growing segment of our population.
2) High School and College Students
Most network marketing companies don’t require a college or even a high school diploma, making them prime opportunities for ambitious young workers. Younger workers can also take advantage of flexible working hours as they balance earning income with coursework and other pursuits.
3) Stay at Home Parents
For many of the same reasons as retirees, stay at home parents often take advantage of the flexibility of network marketing programs.
Although most network marketing programs are solid money-making entities, there are certain areas one should investigate before investing any time or money into a company of this sort.
a) Passion for the Product: What is the company selling? Passion is key in any sort of direct sales, so if the individual does not believe that they are selling a quality product, the chances of success are limited.
b) Age of the Company: If the company is less than five years old, there will be little data with which to make an informed decision. Individuals are encouraged to seek out a company with a solid history and reputation.
c) Potential Profitability without a Down-Line: Potential earners are warned to avoid companies for which profitability is not possible without recruitment. Consider the added commission percentages from the down-line as bonus on top of a salary.
Generating income from networking marketing streams is not for everyone. A lot of people enjoy the predictability and stability of a salaried positions. However, for those that wish to supplement their income or pursue a more flexible type of employment, a network marketing company is worth investigating.