Network marketing gained popularity several decades ago. This is a multi-level structure with many distributors (distributors).
Usually network marketing associated with the distribution of various goods according to the scheme "from producer to consumer".
Consider the advantages and disadvantages of network marketing.
Network Marketing - Cons and Pros
Advantages of network marketing:
- Chance to earn unlimited money. If a person is purposeful and diligent, then you can come to an abundant life in a similar way. The more people you attract, the more you earn.
- Financial independence. You are given a chance to earn money without investments, and if you try, you can gain this very independence.
- Development of own business.
- A close-knit team of like-minded people.
Cons of network marketing:
- income instability. It all depends on your diligence and on the people you adjust to suit you. One month the income can be good, another very weak.
- Moral instability. Many clients feel they are being tried in again to dissolve and "push" nonsense. To dispel this myth, time may pass, and the nerves are already naughty.
- Unavoidable expenses and investments. True, the amounts are not so large, several hundred thousand rubles, but you will have to invest.
- A responsibility. Network marketing is a team effort. And the superior person is responsible for the subordinate employee and his success.
World business stars about network marketing
Network marketing welcomes energetic, optimistic, active, sociable people to his team. And the more these qualities are developed, the higher your chances.
Network business loves leaders and grow them with pleasure. The main plus in network marketing is constant communication with people. Every business requires patience and work.
How to start a network marketing business?
You need to choose a company in which you want to work, study products, find a strong team and start acting!
We can offer you a company that has already won many hearts. And is one of the leaders among the construction of MLM business. The company has its own values and its own culture that is passed on to our newcomers and changes their lives.
A large and friendly Oriflame family is waiting for you. Become part of our successful team. Today is your earnings tomorrow.
The history of the development of network marketing can be conditionally divided into two stages.
The first direct selling system appeared in the United States in 1868.
A Southwestern company began selling bibles from house to house.
In the same year 1868 David McConnell founds a company called California Perfume Company, and is based on the distribution of products by direct sales from hand to hand. The company continues its activities to this day and its products are known in many countries of the world, including the CIS countries. And today we know this company called Avon.
We discussed the relationship of multi-level marketing with direct sales in the article “Direct Sales and Network Marketing”.
1934 A new company appears in the USA Vitamin Products Company, founded by Carl Rehnborg. During its existence this company renamed twice. First time at California Vitamins and then NUTRILITE Products.
It was in this company that they first began to use a single-level reward system. That is, distributors invited other distributors to the company, and for this the company paid them a certain percentage of sales.
And again the USA, 1945. Company Mytinger & Casselberry (M&C), which is the sole distributor of the company NUTRILITE, completely changes the established system of rewards.
For better motivation distributors, employees of Li Meitinger and William Casselberry created a bonus scale, and they also came up with a 2% reward for attracting and training new distributors.
Some time later, M&C became part of NUTRILITE.
1959 is the final year of the 1st stage of development of network marketing. Jay Van Andel and Rich De Vos, distributors of NUTRILITE Products, found new company American Way Corp.. In doing so, they completely change the rewards marketing plan, and today this plan is considered a classic.
American Way Corporation (Amway) successfully develops and already in 1972 it absorbs NUTRILITE Products and, accordingly, the title of the founder of multi-level marketing passes to it.
The second stage of the history of network marketing.
It falls on the 1960s-1970s, USA.
During this period, the development of network marketing was under threat. As the network business developed successfully, many scammers began to use it. They create a lot of companies that disguised as MLM and arrange a real boom in trade and financial pyramids. Since the problem has reached a large scale, the American Government was forced to intervene, starting the fight against financial pyramids. It just so happened that Amway was also among those accused of financial fraud.
The legal proceedings against Amway lasted for four years. And in 1979, the court dropped all charges against the company. Then, multi-level marketing has been recognized at the level of law, and the distribution system of goods and the payment of rewards are legal.
The recognition of multi-level marketing as legal, served to the fact that he began to gain more and more popularity in the United States, and after a while, spread throughout the world.
In the early nineties of the twentieth century, network marketing appears in Russia. But, unfortunately, as in America, in Russia, along with conscientious MLM companies, fraudulent companies also appear. And just like in America, there were thousands of people deceived by fraudulent financial pyramids.
It just so happened that at the same time there was agitation of networkers and advertising companies of financial pyramids. And in the minds of many people, MLM was associated with a pyramid scheme. Unfortunately, some people still hold this opinion.
In 1995, the first network company was created "Eltab" which still works.
The nineties of the twentieth century can be called the era of the "wild" development of network marketing in Russia. During these years, the work had the character of disorder, in network marketing "everything that moves was attracted."
Although the era of wild MLM development in the 2000s years has ended, today you can still meet old-style networkers.
Although, today's new marketing is gradually replacing the "old" networkers.
Wild methods were slowly but surely replaced by methods of civilized work. The system of searching for people and their training, as well as working with clients, became more and more correct.
Today network marketing is popular in many countries. Every day its ranks are replenished with new people who want to make money with the help of MLM.
Now the best companies use for their development. modern technologies. Now it is not necessary to arrange live meetings and presentations. MLM business can be conducted using the Internet and automated systems that companies provide for their distributors.
Annual sales through network marketing is over $110 billion, and this is not the limit, every year the volumes increase.
Video showing the essence of network marketing.
Network marketing gained popularity several decades ago. This is a multi-level structure with many distributors (distributors).
Typically, network marketing is associated with the distribution of various products according to the "from producer to consumer" scheme.
Consider the advantages and disadvantages of network marketing.
Network Marketing - Pros and Cons
Advantages of network marketing:
- Chance to earn unlimited money. If a person is purposeful and diligent, then you can come to an abundant life in a similar way. The more people you attract, the more you earn.
- Financial independence. You are given a chance to earn money without investments, and if you try, you can gain this very independence.
- Development of own business.
- A close-knit team of like-minded people.
Cons of network marketing:
- income instability. It all depends on your diligence and on the people you adjust to suit you. One month the income can be good, another very weak.
- Moral instability. Many clients believe that they are once again trying to breed and "sell" nonsense. To dispel this myth, time may pass, and the nerves are already naughty.
- Unavoidable expenses and investments. True, the amounts are not so large, several hundred thousand rubles, but you will have to invest.
- A responsibility. Network marketing is a team effort. And the superior person is responsible for the subordinate employee and his success.
World business stars about network marketing
Network marketing welcomes energetic, optimistic, active, sociable people to his team. And the more these qualities are developed, the higher your chances.
Network business loves leaders and grow them with pleasure. The main plus in network marketing is constant communication with people. Every business requires patience and work.
How to start a network marketing business?
You need to choose a company in which you want to work, study products, find a strong team and start acting!
We can offer you a company that has already won many hearts.
And is one of the leaders among the construction of MLM business. The company has its own values and its own culture that is passed on to our newcomers and changes their lives.
A large and friendly Oriflame family is waiting for you. Become part of our successful team. registration on the website today is your earnings tomorrow.
Now I propose to understand such concepts as direct sales and network marketing. A lot of people involved in marketing quite often confuse the two. So what is the difference between direct selling and network marketing.
2 comments on ““Direct Selling and Network Marketing.””
How to open an MLM company
To begin with, let's look at why starting a network marketing company (or MLM company) is fundamentally different from organizing a company that operates within a traditional distribution system.
If you decide to start a network business, then instead of a sales network on a salary (regional managers, sales agents), you will work with a large network of agents on a voluntary basis. You do not pay a salary, but a certain percentage of each sale Money distribute among the participants of the distribution network.
The algorithm for distributing funds is recorded in the form of a document and is called the "Marketing Plan".
A marketing plan is the most important document that sets the very strategy for building a network. Read more about the marketing plan here .
The above is key difference MLM companies from any other trading company, therefore, if you wondered how to create and build a profitable network marketing, you have the following three tasks that fundamentally distinguish the internal structure of such companies from other companies on the market, regardless of the type of product being promoted:
- Accounting system
AT computer program it is necessary to keep a complete account of agents, relationships between agents, purchases, accrue earned funds, and also take into account the issuance of funds. In the early days of MLM companies, all of this could be done in Excel. Today it becomes practically impossible due to the complexity of the calculation algorithm.
Good accounting system (such as SystemRitos ) fully automates the company's activities - this includes inventory control with support for regional warehouses, and " workplace merchant", and integration with external payment systems, and the possibility of manual / automated payments, and personal accounts each agent to work with his personal network, and many other functions.
- Building a network and working with a network
The network consists of agents to whom the company does not pay wages, in connection with this, a large amount of tasks arise to create a system for attracting and retaining agents. Among all the tasks of working with the network, the formation of the company's ideology is paramount.
We have specialists with serious experience in building and maintaining an agent network, as well as in the formation of an ideology.
The work of building and reformatting the network is individual work with every company.
- Financial and legal support
When creating an MLM company, it is worth remembering that the concept of "MLM" today is outside the right field of the Russian Federation in the sense that the existing mechanisms for paying out cash individuals involve high taxes. Under the condition of such payments, the company itself becomes uncompetitive in the market. As a result, for full-fledged work, it is necessary to develop the correct financial and legal scheme, optimized for a specific company.
One of the popular formats for organizing network marketing companies can be called consumer societies. There are options for working with foreign companies.
We are ready to help organize the right financial and legal scheme for a new company or help reorganize an existing model.
Surely the vast majority of us have an idea of what MLM business is or, as it is commonly called, network marketing. So much false data and opinions of people who have absolutely nothing to do with it have been piled up around this concept that we decided to clarify this issue, because. network marketing is a relatively new phenomenon (especially for Russia), with incredible speed, has already managed to win its rather impressive segment in the business market.
Here we will consider all the advantages and disadvantages of this type of private business, as well as what prevents it from developing at a faster pace, although it is already many times greater in its growth dynamics than the growth of other classical models of our business.
1. This is an opportunity to combine work on creating your own network without leaving your main place of work. It is hard for a person to immediately abandon the main source of income, but, as it turned out, there is no need for this. Most of the network millionaires before the start of "independent swimming" had a main place of work and parted with it already when the level of income of their business exceeded the salary level at the main place.
2. Network business is a very high level of freedom. Moreover, freedom in everything: in choosing a work schedule, in choosing business partners, in choosing distributed products or services, in choosing methods for promoting a product ... I can’t list everything. Network business is a perfect opportunity for revealing your business and creative potential. Perhaps this is the biggest plus of this business, because the most important thing in our society is the person himself and the disclosure of all potential opportunities. Only with independent, self-sufficient, capable individuals can our society flourish, and it is network marketing that "makes" such individuals.
3. This is the unlimitedness of your income. That's where there is no "ceiling of earnings", so it is in the network business. Here only you can limit your income - no one else. Only you can limit the growth of your team and your personal growth.
4. The absence of "bosses" and, consequently, a directive method of leadership. Well, tell me, who among us has not suffered from the tyranny and arbitrariness of narrow-minded and self-satisfied individuals? There is no such. In the online business, things are different. Having harmed his partner, the networker limits himself in his growth. Here the success of everyone depends on the success of the whole team and the achievements of the whole team are directly reflected in everyone. Among other things, there is no linear model of subordination in the network business and therefore, we repeat, there are no bosses and subordinates here, but just partners in a common business.
5. Highly small size start-up capital to start your own business - the fifth undoubted advantage of network marketing. According to the research of our statisticians, today it takes from 600,000 rubles ($20,000) to start a business, and whether it will then generate income is a big question. It takes between $20 and $50 (on average) to get started in network marketing. For example, to start working with one of the world's largest network companies 4life Research, you will need only 750 rubles, and even then this money will "go" to complete your own information package in order to train you and familiarize yourself with the company's products.
6. You won't find another business that does this. great amount most different connections. The network business employs a huge number of people different professions, these are teachers, and builders, and doctors, and lawyers, and people of creative professions, and the military, and managers of various directions and levels - all those who want independence and financial freedom. And they are all on the same team. Would you like to work in such a team?
7.
And the last. What are we all living for? For the sake of being happy, for our children, parents, relatives and friends to be happy. Man, by nature, should simply be happy. realities today are such that one of constituent parts our happiness is financial independence. We do not say that money should become an end in itself for you, but a capable and happy man must be financially independent. What does network marketing give us in this matter? A few numbers:
- more than 50 people working in network companies around the world become dollar millionaires every day;
- Only in the USA today there are more than 400 thousand millionaires in the field of network marketing;
- annual turnover network business in the world increases by 20-30% and today is more than 200 billion dollars.
- every day in the world more than 60,000 people become independent distributors;
- in Russia, about 2.7 million people are employed in the network business, and today our country ranks first in the world in terms of network sales growth - 540% per year (!).
Alexander Ivanov
Greetings friends! The topic can be discussed endlessly. Some call it fraud and pyramid schemes. Someone gave up, just crossed the threshold, and someone is already moving up the ladder of success, having an obscenely high income.
Everything is known in comparison, so let's not argue about this, but just look at network marketing: the pros and cons of this niche from the objective side.
Usually they start with the bad, in order to brighten up the negative later, but I, perhaps, still start with good points. And so, let's get started.
In my opinion, the main and simply obvious plus of MLM is residual income. You know that there is a goal, having reached which, you will be able to receive residual, in other words, passive income, not managing the process, but doing what you love.
And what could be better than having everything you need, and at the same time having the most valuable resource - time?
1. Favorable access to products.
As an MLM partner, you instantly become a consumer of high quality and unique products. And most importantly - you get the opportunity to purchase it at a good discount.
In my practice, I have often come across people who register in the partner database in order to purchase products at competitive prices, and not to conduct business.
2. Easy start.
To infiltrate the team and start developing the business, you do not need any initial investment other than the purchase of products.
Again, a very profitable plus in comparison with the classic business building, where starting investments are quite large amounts.
Also, MLM companies do not put forward any strict conditions and restrictions on the selection of their team, you do not need to have sales experience or marketing education to get started right now.
3. Free schedule.
Who likes to get up early in the morning, hastily drinking his cold coffee to get to the office on the far side of the city and be at the planning meeting at 8 sharp without getting a fine?
Yes, you are right - no one)))
Being a member of network marketing means doing business development at any time convenient for you. No framework, and clear hours of work.
You can meet your clients and replenish your team late in the evening at a party, visiting or standing in line at the bank. I'm not talking about the internet anymore. Yes, this is the very work that can be productive and bear fruit even on vacation.
By the way, here is one of my tools for partners, so that they can on one's own and successfully build your structure - 7 free video.
4. Training.
MLM organizations improve the skills of their partners. Trainings, master classes, webinars and other training programs are regularly held.
It is always interesting and informative. Such experience helps not only to orient in new sphere and successfully advance in it, but master a powerful marketing tool that will come in handy more than once even outside of MLM.
But millions of people pay to attend such events or take business courses.
5. Work via the Internet.
All the same, it is worth mentioning this, because. Already more than 90% of networkers conduct their activities exclusively online.
If earlier it was possible to search and attract customers in network marketing only through live sales, today a big plus is the ability to expand your team and find buyers through the Internet and social networks.
Using such a resource, you can actively work while sitting on the couch and sipping the smoke of a hookah.
Get instructions
6. Support.
And there can be no question of support and assistance in building a classic business model. Every man for himself.
And if you stumble, start all over again, clearing the rubble of your mistakes. But with network marketing, everything is different, and training is one of the proofs of this.
Employers set strict limits for the selection of their subordinates, give probation and maximum help this case is a week-long internship under the guidance of one of the disgruntled employees. I didn’t pass it - to the exit, because there are plenty of people who want this vacancy.
While representatives of network marketing do not require the impossible from beginners, they do not put forward conditions and requirements, they teach, give professional recommendations and tools for solving problems.
In this case, one should not be afraid of reprimands of fines, deprivation of bonuses and dismissal, and, in my opinion, this is a very significant plus.
7. Unlimited income.
If when you come to work, you often hear the amount of the dry rate, then in this case, your earnings can be unlimited. It all depends on your perseverance and determination.
8. Passive income.
Once you have structured and assembled your team, you can start earning good income without any effort. This is what I talked about at the very beginning - the residual income that every networker strives for.
9. Additional rewards.
As an encouragement and a good incentive for the team, network marketing representatives use bonuses, as well as prizes and even travel. What I have not seen in any classic business, and it seems to me that I will not meet.
Cons of MLM
1. Fraudsters.
Yes, sadly, but the popularity of MLM organizations has provoked the emergence of fraudulent companies that want to get rich on ignorant newcomers.
However, such a failure is easy to avoid by cooperating only with large and well-known companies with.
2. The cost of the product.
Companies that produce truly unique and high-quality high-class products. Sometimes the price for it may exceed market analogues of lower quality.
It is not difficult to buy a product, because partners, as I have already said, receive a privilege in the form of a good discount, but the terms of sale become more complicated, due to the fact that our people love to eat fish and not go into the pond.
However, having learned the art of marketing, it is not difficult to convince the buyer of its benefits, especially by attaching him to the team, he will be able to buy the product at the same favorable price.
3. Refusals.
Nobody likes to get rejected, and in this case it is inevitable, because it is an integral part of the experience.
It is the failures that help to identify your mistakes, work on correcting them and gain indispensable experience for successful advancement in the future.
In addition, for this, there are a lot of trainings and webinars that teach the art of selling and working with objections.
4. Team turnover.
Not everyone stays in the team and persistently develops their business. Many light up, and subsequently go out and leave, which is reflected in other networkers.
That is why it is very important to support those whom you bring to the team and monitor their success until they are convinced in practice that such earnings are worth the time and effort spent.
5. Not guaranteed earnings.
If you expect that becoming a partner network company and having made a starting purchase, you will start earning untold wealth - you will get a cruel bummer.
Such dreamers leave the network with a negative impression of the entire company, spreading rumors that MLM is a scam.
You need to be willing to work hard and spend your time, especially at the beginning, in order to expand the team and receive passive income in the future.
6. Lack of official employment
Many consider the position of a networker, to put it mildly, not prestigious. But it is, first of all, a business. To achieve results in order to drive a cool car past those who considered working in MLM as not worthy of their attention is, I think, a worthy incentive.
As such, there really is no official employment in MLM companies. At least in all known to me.
But, in order to receive remuneration, as a rule, it is required to conclude an agreement and issue an IP. Payments are made to the current account of the entrepreneur, who independently calculates and pays taxes.
Thus, the issue of official employment, social insurance and pension savings resolved.
That's actually all I wanted to say. You just have to weigh the pros and cons, prioritize and draw your own conclusions.
In general, if you don’t try, you won’t know, as they say.
I wish you success, subscribe to my updates, share links with friends and find useful information. Subscribe also to the Telegram channel - t.me/site. See you later!
according to all statistical analyzes, the number of companies that specialize in MLM business is growing every year. And this is not surprising, since their services are used consistently. high level demand from people who really want to make money in comfortable conditions. After all, often just a few months are enough to have stable income, exceeding the salaries that today can be expected with the classic version of employment.
Naturally, network marketing has its own characteristics, which you should be aware of before starting to conduct activities in this direction.
What is the essence of network marketing
The essence of the MLM business comes down not only to the sale of certain products to the end consumer, but also to the formation of a personal network of agents who will be engaged in the same distribution, with the right to create their own network.
That is, network marketing is actually single genus activity, which allows a person to almost instantly get the position of a leader and be at the top of his own pyramid, making a profit not only from personal sales, but also a percentage of those actions that are performed by people located below him in the hierarchy.
Pyramid? Is it bad or not?
Many people living on post-Soviet space, have an extremely negative attitude towards such a concept as "Pyramid". They can be understood, since thousands of them at the end of the last century lost their money in financial institutions built on a similar principle.
But, if financial pyramids offered absolutely nothing to people, except for the payment of rewards received by attracting funds from new project participants, then network marketing works on the principle of a classic enterprise that produces something or provides intermediary services. That is, the participants in the MLM business make their profit through sales, which means that there is no deceit in this idea, and the business itself can exist indefinitely - as long as there is a demand for certain products.
Virtually any modern organization has a structure similar to a pyramid, where the leader is at the top, and his subordinates are below. But network marketing has one very important advantage: in such a system, absolutely all people make a profit, depending only on their success in forming their own network and the level of sales. Whereas in a classic enterprise, lower-level employees are often deprived of such an opportunity and work for a fixed remuneration, which means that they do not have an incentive to increase the volume of sales of the products offered.
History of MLM business development
The foundations of the principles laid down in modern network marketing appeared back in 1927, thanks to the activities of Karl Rehnborg, who decided to start creating food additives in the USA. Initially, Karl simply distributed his products to his friends so that they could appreciate his developments. But Rehnborg's acquaintances often refused to use these supplements. And this is not surprising - many people do not at all appreciate what they get for free.
Carl Rehnborg decided to change his approach and moved on to selling his dietary supplements. The result - the demand quickly exceeded the capabilities of Karl, as he had to deal not only with production, but also with the distribution of his own products. The way out was found in attracting friends who received their percentage of remuneration for successfully sold dietary supplements.
The principle invented by Rehnborg turned out to be so effective that already in 1934 Karl founded his first company, called "California Vitamins", which in 1939 it was decided to rename to a more attractive option - "Nature's Sunshine Products". Anyone could become not only her client, but also a sales agent, making a profit for attracting new customers and creating their own networks of sales representatives.
In 1959, the second stage in the development of network marketing began - the American Way Corporation was founded (by the way, by two former subordinates of Karl Rehnborg), which offered to sell not one specific type of product, but in fact an unlimited range of goods.
Today similar companies exist not only in the United States of America, but also in other countries. They operate successfully in Western Europe, in Russia and China, in other states of our planet.
An Alternative Variety of Network Marketing Structure
In addition to the classical, pyramidal structure of a network organization, there is another common option called "Puff". It is this variant that the most widespread in Russian Federation, and many famous brands apply it in their activities on the territory of our country. For example, Avon, Oriflame, Faberlic, Mary Kay and so on.
The essence of the layered structure of a network company is reduced to the formation of separate layers of employees, each of which has its own level structure.
How to become an employee of an MLM company
Recruitment of new participants in MLM business is usually carried out through the organization of interviews, where interested people are told about the prospects and opportunities obtained from this kind of activity.
The next step is to provide information on how to increase your own profit. That is, consultations and training related to the formation of their own sales network.
The third stage is completely independent activity a person when he receives a profit from each successful transaction and a percentage of the sales of his sales agents.
Some of the most important features of MLM business
Network marketing companies almost always rely on the distribution of some unique product. The leadership of such organizations is well aware that if you offer people something really unusual and special, then there will always be a demand for such goods.
Another feature of the MLM business is that it is not at all necessary to engage in sales in order to make a profit. If you don't want to sell, don't. It is enough to create your own network of sales agents, to give motivation to people in order to receive quite an impressive financial reward.
Principles that guide most successful network companies
All successful companies operating in the MLM business use similar principles to ensure their activities:
- There is no classic version of "Chief - subordinate". All employees of the company are equal in their rights. There is a principle of mutual assistance.
- Maximum cost reduction on the part of a person who decides to join the network enterprise.
- Strict observance of the layered or pyramidal structure of the organization.
Compliance with these rules contributes to the successful development of the MLM business and the growth of profits for its participants.
What is the importance of organizing the right structure in network marketing
Suppose one person is able to sell 100 units of goods per day. For more, he does not have enough strength, time, opportunities. essence network organizations lies in the fact that the highest link in the created structure always receives its percentage of profit from the sales of lower level agents.
That is, if a person has his own network of agents, consisting of a hundred people, each of whom sells 100 units of products per day, then his total profit increases by a fairly significant amount of money.
Who can be taken into the created network? Absolutely any people. You can involve your own relatives, friends, complete strangers, but interested persons. The more motivated agents the network manager has, the greater his profit for any period of time!
How to Become a Successful Network Marketing Distributor
One of distinctive features network marketing lies in the fact that absolutely anyone can test their own strengths and capabilities in such activities.
Unfortunately, but the wrong approach and understanding of the principles of MLM companies sometimes leads to disappointment and failure. For example, you can create a network of agents that will be completely inefficient, consisting of so-called " dead souls". It seems that a person has several dozen agents, and all of them do not distribute products at all. The result is minimal or complete lack of profit.
To become a successful distributor in the MLM business, you must:
- Be able to attract and motivate new partners.
- Constantly work on expanding the base of potential customers.
- Plan effective sales.
- Read specialized literature, attend specially organized trainings and events of more successful networkers.
MLM business on the global web
The development and ubiquity of the Internet has given a tremendous chance to networkers to use the fantastic potential of the Global Web. If in the classical version of network marketing it is often necessary to limit oneself to the distribution of products in one specific locality, then the Internet allows you to completely remove the boundaries and open access to potential customers in any corner of our planet.
That is, network Internet marketing is a number of significant advantages:
- All activities are conducted via the Internet. Therefore, it is enough to have access to the network to get the opportunity to earn money. You can engage in MLM business without even leaving your home!
- There are no geographical restrictions - the main thing is to find your own target audience, even if it is in another country, on another continent!
- Access to a huge number of online lessons, seminars and other methods that contribute to self-improvement in this area of activity.
- The possibility of creating online stores and establishing their work almost to full automation.
What does a person need to achieve impressive results and success in network marketing
For network marketing, human shyness is a significant disadvantage. However, as for many other activities. A person must have good communication skills in order to easily find mutual language with complete strangers. Excessive shyness often leads to the fact that the created network of agents consists only of the closest relatives. Naturally, this limits its development potential and seriously reduces the possible profit.
A person should be able to interest, motivate his partners or clients. If the agent is not interested in selling certain products or he does not see the benefits for himself from such activities, then he will not work effectively.
That is, the most effective and successful networkers are well-read, intellectually developed people able to easily establish communication with any person. Fortunately, today there is a lot of literature and other methods that allow revealing in a person necessary qualities and keep improving them.
Disadvantages of MLM business
Yes, there are also disadvantages in network marketing and you should be honest about them:
- Income instability. A person receives profit only from his own sales success or similar achievements of his network of sales agents. No one in network marketing pays a fixed salary.
- A high level of moral burden and responsibility, since the networker directly communicates with his customers and it is to him that people will turn with claims if any trouble arises.
- The presence of the risk of losing one's own investments. A person who is engaged in network marketing, before selling anything, must acquire it from a higher structure. Therefore, there is always the possibility of losing the money invested.
- The need to be responsible for your network, since not only profit, but also reputation depends on its effectiveness, the qualities of the people involved. But this shortcoming is associated with any leadership position and in classic enterprises, since it is the leader who is always asked for the flaws of his subordinates.
Network Marketing Conclusion
Yes, network marketing requires an understanding of certain nuances and principles of this area of activity, as well as the obligatory consideration of some shortcomings. Nevertheless, it is the MLM business, with the right approach, that allows you to really achieve financial independence, since a person's income depends only on his desires, capabilities and abilities. In addition, network marketing is a great opportunity for self-development and improvement of personal qualities. What is no less important than the potential income from such activities.
