Network marketing (or multilevel marketing ; eng. multilevel marketing . MLM) concept sales of goods and services based on creation of a network of independent distributors (sales agents), each of which, in addition to product sales, also has the power to attract partners who have similar rights.
The level of technological progress at the end of the XIX-th and early XX-th century in addition to all the advantages that are in favor of world civilization, led to some problems in the global market. Today, humanity is not difficult to make quality goods, and in large quantities. No problem to make cars, TVs, sewing clothes, produce raw materials, etc., However there was a problem like what you produce, quickly and effectively communicate to the customer, the consumer, how to promote the product on the market. Sometimes in some countries there are situations where the generator is paid the money for something that he did not make products, because ultimately the product will disappear on warehouse territories without seeing a buyer.
A classic example of product promotion on the market.
We see that the product T produced by the manufacturer, at cost $ 10 the end user is much more expensive at $ 100. This is a hypothetical example. Why is this happening? It’s just. Pricing is influenced by several factors: transportiert, rental of premises, wages of employees (labour force), customs costs, time costs, advertising, unforeseen expenses, etc. And this happens on several levels, and everything costs money. This is a very heavy, long, monotonous process, which is riddled with bureaucracy, loans, monopolies, and other complexities.
At each stage of promotion, you receive the possibility of falsification of goods. The store usually can not guarantee the authenticity of the resulting product. This process is very difficult to reconstruct under the scope today.
In the middle of the XX century the mankind began to think about new, more effective ways of presenting products to the market. And as such was the distribution of this relatively new trend in the world economy, which affected almost all countries. This method assumes a more profitable, rapid and efficient promotion of products to the consumer at a much lower price.
Distribution (business) — organization of distribution of goods, distribution of goods via network marketing.
This system significantly reduces advertising costs for product promotion and cuts off intermediaries, making the product more affordable. People buy products directly from the manufacturer or company directly associated with the manufacturer. Is almost impossible the emergence of counterfeiting as a commodity moves, bypassing the many intermediate stages. Now it can be sold at significant discounts from retail prices. It attracts buyers. Information about good quality products in affordable prices, naturally, spreads from person to person.
This natural process has become the basis of genius in its simplicity, the economic model of increasing the network of consumers. Is cost PA advertising and increasing the number of retail outlets, creates a cost effective mechanism for financial remuneration of those who have already learned about the product and pleased with the result of the mi of its application. Material encouragement of the natural human desire to share good information with other people became the basis of a network marketing scheme. And nothing “new” in this.
Consider a few real-life examples.
You bought the tape, watched and did You enjoy the movie. You told your friend. He wanted to buy a cassette. You kindly shared information, called the address of the store. Your friend became the happy owner of the same magazine.
You visited the restaurant. You liked the food and service. You told about it to their friends. Perhaps some of them will visit this cosy restaurant. Then go to their friends, etc.
The trade restaurant and shop has increased, thanks to Your stories? YES! You have something to sell? NO! You don’t even think about it. You’ve performed the function of Manager of the company, product or service which You liked. By their actions, You increase the number of customers and help to get extra income. Have you ever paid for this “work”? NO.
Remember how many times You someone recommended products, restaurants, auto mechanics, doctors, spas,performances, nannies,builders, tailors, etc. Remember, how many recommendations of other people You have used yourself! All people do network marketing every day, but it for it nobody pays.
Network marketing is nothing more than a recommendation and a proposal of what You like.
To say that in this scheme there is no advertising mistake. Advertising is, moreover what! Recommendations from mouth to mouth, huge power! Traditional media have no chance compared to the sincere and friendly advice. The advertisement says: “Sweet”, a friend bought it and said, “It’s sour”. Whom should I trust You.
The huge financial potential that previously went to all the annoying advertising and intermediaries in network companies is to improve the quality of products, services and labor. A quality product reaches the customer but affordable price. Thousands of different products and services offered through network marketing. Organized network of satisfied customers who begin to use any product or use business opportunities of the project. The recommendation of one client to another in network marketing are paid in the form of payments to fixed percentage of the amount of each transaction between a campaign and a new client. This process can be infinite. This is one of the most effective ways to get an unlimited income without creating their own firms, warehouses, offices, the traditional set of risks, hired personnel.
The main thing you need to do to succeed in network marketing.
Keep doing what You already know how to do: begin to use the goods (services) that You like.
Give information to other people, tell them about the product (service) that You are enjoying yourself and your results. Invite them to use the same. Because You are the product (service) is really like and You know its properties.
Tell us about the financial capabilities and explain how beneficial using a good product to promote information on opportunities provided by the company. Teach 5-7 people to do the same.
So developing this business that has no boundaries. This success contributes to a phased system of training and mentoring in network marketing! If You have something to recommend and offer, then why not get paid for it, right.
MLM history is inextricably linked with the name of an American, Karl renborg (1887-1973), whose implemented ideas to promote the product through recommendations of satisfied customers, has become the industry of Network marketing with turnovers in the hundreds of billions of dollars. People still put him a Golden monument for this “greatest opportunity in the history of mankind”! I hope You are already close to join the builders of this monument.
Similar to the famous scheme of “happy letters”, “closed clubs” and other financial pyramids? YES! YES! YES! It is this “similarity” prevents many people to see their prospects.
Is there an easy way to distinguish one from the other.
-In pyramid their money to people in exchange of a blank piece of paper, mythical promises, or the right to invite other simpletons.
-The companies promoting the product (service) on the system of network marketing, the people behind the money you get a quality PRODUCT that they love and need them! And the income from them increased TURNOVER.
You have a real chance to learn the activities that will be in demand always and anywhere in the World. Everywhere there are manufacturers who are interested in promoting it to the buyer. Everywhere there are people who are potential consumers of this product.
In addition, the company and the person who invited You (the mentor) financially interested in increasing Your income and in Your teaching. You will not be left alone with the difficulties and the issues, of course inevitable, as in any other activity. It is the tutor (informational sponsor) will talk about the opportunities and goods to the people You choose to invite. He will answer the questions they ask. And you will be there and learn. Exactly what will be Your first income, first distributors or customers.
Do not think that You will begin to persuade. You can only teach someone who is prepared to learn. Your mentor can teach anyone.
An example of a network building customer.
You have the right of choice and great opportunities.
Network marketing is a highly profitable business with minimum investment. Do most companies in this industry working capital is less than 200 $ 300. Compare this amount with the money required for the promotion of any traditional business, it’s tens of thousands of dollars is usually borrowed under a hefty monthly interest, and draw a conclusion.
The minimum risk.
Unlimited income. And it’s not just a theory. It’s a huge amount of vital facts. Everyone is moving into this business on the basis of the achieved results to them personally. The so-called patronage , “nepotism will not help. No boss who will decide to promote You on the career ladder, or to slow down.
Freedom. For some it’s financial, when life ceases to be determined meager pay at the end of the month or a piece of bread from the master’s table. For some, it is freedom of movement, travel around the world. The freedom to choose their business partners, lifestyle, and personal philosophy.