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.
Its pretty easy to understand the definition. Every individual produces sales which results in revenue. Bringing others into your group to sell the same goods or services results in forming a network. Not only do you get paid on sales you make but also on the revenue generated by your recruits. So, when 2 or more people are engaged in selling the same products or services, you have network marketing.
Most compensation plans in the network marketing business are based on the hierarchy of their system. Many are so complex that its nearly impossible to understand how you get paid. Other plans are pretty simple and straightforward so any ordinary person can comprehend how they 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.
Most people who join these companies have no clue what new skills they will need to develop to succeed. They have no sales or marketing experience and just don't know how to get started. That's where the network marketing companies' training and support systems become exceedingly important. They must provide the necessary training in sales and marketing techniques for the ORP person to become proficient. This can become a long and arduous task for some and in some cases may overwhelm the trainee.
Again, you must do your due diligence before joining an opportunity. That includes knowing what you will need to bring to the table in the way of skills as well as the financial responsibilities. Failure to bring the skills needed can be just as devastating as financial failure.
No other industry has created the great wealth that network marketing has created. It provides great flexibility, generates great camaraderie, builds self esteem and generates great psychological income from helping others succeed. It is also highly profitable.
Dedication and perseverance are required to build a successful network marketing company. "Get rich quick schemes" are short lived. It is possible to build a successful network marketing business and to enjoy the great rewards possible.
I wish you the best of success should you pursue a future in network marketing.
Best regards,
Doug
Its pretty easy to understand the definition. Every individual produces sales which results in revenue. Bringing others into your group to sell the same goods or services results in forming a network. Not only do you get paid on sales you make but also on the revenue generated by your recruits. So, when 2 or more people are engaged in selling the same products or services, you have network marketing.
Most compensation plans in the network marketing business are based on the hierarchy of their system. Many are so complex that its nearly impossible to understand how you get paid. Other plans are pretty simple and straightforward so any ordinary person can comprehend how they 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.
Most people who join these companies have no clue what new skills they will need to develop to succeed. They have no sales or marketing experience and just don't know how to get started. That's where the network marketing companies' training and support systems become exceedingly important. They must provide the necessary training in sales and marketing techniques for the ORP person to become proficient. This can become a long and arduous task for some and in some cases may overwhelm the trainee.
Again, you must do your due diligence before joining an opportunity. That includes knowing what you will need to bring to the table in the way of skills as well as the financial responsibilities. Failure to bring the skills needed can be just as devastating as financial failure.
No other industry has created the great wealth that network marketing has created. It provides great flexibility, generates great camaraderie, builds self esteem and generates great psychological income from helping others succeed. It is also highly profitable.
Dedication and perseverance are required to build a successful network marketing company. "Get rich quick schemes" are short lived. It is possible to build a successful network marketing business and to enjoy the great rewards possible.
I wish you the best of success should you pursue a future in network marketing.
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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