Almost all of us have heard and of course have experienced the term “network marketing” but the truth is if someone asks “what is network marketing “we can’t give out an exact definition. We all know that the network marketing involves with the marketing and selling stuffs.
But this is not the exact definition. To answer in short “It is a way of changing your future by helping other people to grow”. Remember the pyramid structure of multi level marketing business model. Now you got clear with the definition. When the people at your down line grow by making sales you can just sit back and get the commission rate. Thus it will change your future.
Many people out there used to think like what is network marketing. But actually they don’t. Negatives can travel speedy than the positive one. One or two mlm scams which are heard by the people have wiped off the good reputation of networking marketing in many minds today.
Do you know what illegal pyramid scheme is? It is all about people are provided with other people money. These people don’t buy and sell anything. People who are involved with these illegal mlm are convinced in some way to give their hard earned money to other people. This is not a legitimate one.
Legitimate mlm is all about buying & selling the products or services from one company and making commission out of it.
What Is Network Marketing?
Generally top mlm marketing companies like Amway and Marykay use to manufacture the products and services to suit the needs of the people. These companies instead of following the traditional sales route from the manufacturer warehouse to retail stores these companies want to sell their products through people like you under the mlm business model. Every distributor is provided with the two options here. Either they can directly sell the products and services and get the commission from the sales or they can make the people to join in the mlm company where they belong from now on they are too become a distributor. Whatever the sales they are making to the company you will get certain percentage of commission from that.
If you see the mlm pyramid image below you will become clear with the down line commission structure. All network marketing companies do not follow the same sort of rules and regulations. So carefully read the terms and conditions. Anyhow their business model is the same.
Let’s make you clear with what is network marketing. Let’s say you are at the top level and as a distributor you can make 10 people to get sign up underneath your level. When these 10 positions got filled then you will be at the level 1 and the people underneath you are in level 2. If each of those has introduced some 10 people under them now your mlm pyramid will have 100 people underneath yourself. When this level goes like 6 or 7 you can easily build a down-line with around 1000 prospects under your level. To build an effective team with your down lines you should conduct the network marketing training every now and then.
Real beauty of multi level marketing is whenever the people who are in your down-line make a sign up to the company you will be getting the commission automatically. But of course if you directly made that sign up you will be getting more.
Obviously as a distributor no one can make 1000 sign ups on a daily basis in their own. But it is possible through effective network marketing training and marketing force. This is what a secret that lies behind any network marketing company’s success.
what is network marketing