Network marketing is one of the smartest types of marketing; It is tantamount to creating departments and classes of distributors and salespeople, and each department creates another department that follows it, at no great cost to the company that owns the primary product.
The intelligence of network marketing, then, lies in its being a "reward for distribution". Whenever the product is distributed on the largest scale, distributors get a share of the gains, and then we are facing an equation in which everyone is a winner, and that is the secret of this intelligent marketing strategy, in addition to bringing Everyone is at the table, at no cost to the company.
What is network marketing?
This is a difficult question to answer. Because in marketing, as in any other field, there are many schools, and every school has its own perspective on this or that issue. Of course it is understood that definitions are limits, but it is not a requirement that the boundaries are always clear.
In any case, here we will adopt the most popular definitions that are agreed upon by a large group of experts; Where network marketing is seen as a business model that relies on personal sales by IRs, the business of network marketing may require building a network of business partners or sales representatives; To help generate leads and close sales.
Network marketing is known by a variety of names, including multi-level marketing, cellular marketing, affiliate marketing, direct consumer marketing, and referral marketing, and is also called "multi-level marketing".
The network marketing concept works this way:
A company that has a product or service to sell, finds representatives to sell that product and recruits more representatives to expand the network; So that the reps get a sales commission on every product they sell, and on every product that the people you have recruited sell as well.
So, network marketing is the distribution of products and services; Through a network of people, not traditional supply chains.
The skill here lies in creating the private network in which everyone has the ability and willingness to sell and distribute the product. Of course, both are difficult: selling the product itself, and recruiting other salespeople who have the ability to increase the product's sales rate.
It is true that many view network marketing as a good job for those who want to work part-time, but the effort expended on it is truly great.
Bonus on distribution
The simplest perspective in which to look at network marketing is to say that it is a "reward for distribution" strategy, or a "reward for distribution" strategy; So that the company rewards everyone who distributes its product.
The percentage of profit earned by the salesperson involved in the network marketing process is directly proportional to two factors: the same sales ratios (as a primary factor), as well as recruiting other people to sell the product; Every sale that is made by someone you recruited before you get a share of it.
Hence, the rate of sales is the basis in determining the percentage of profit that you will get through network marketing.
Hence, it can be said that the philosophy behind network marketing can be summarized as follows: Instead of the company spending millions (or billions) in marketing and advertising its products through the main media (television, radio, billboard ads, newspapers, magazines, etc.), it is It simply rewards people for distributing those products by referral, orally.
I might not dare say that network marketing is a form of passive income; Especially if you can recruit several people who work for you, and then for the company. But it is, albeit in some way and mystically, a pattern of passive income even if the approach seems a bit distant.
Aside from that distant advantage or that not everyone involved in the network marketing process may be able to achieve, the main feature frequently mentioned in the marketing literature is that network marketing is a low investment.
So, you are not required, as a person willing to participate in this course, little money that entitles you to buy some samples of the product that you will sell later.
Of course, here is a risk ratio: you may lose the money that you paid for these samples that you bought from the product, and at that time you will lose the money that you paid, but even if this happens, the amount of money you will lose will be small As the principle in things is that you buy a sample (a small amount of the product) and therefore the amount of lost money will be insignificant, if we assume your failure even in marketing this limited quantity of samples.