A lot of times I meet people who are not quite sure what Network Marketing (NM) is all about. There are a lot of confusing myths and misconceptions about the industry out there. This can put people off. I decided to explain NM in the simplest way possible. Stay with me.
Network marketing is a business model, according to Investopedia,
that depends on person-to-person sales by independent representatives, often working from home. A network marketing business may require you to build a network of business partners or salespeople to assist with lead generation and closing sales.
There are many definitions online but the above is the one that best describes it for me. You Are in Sales. Ann Sieg says:
"If You Are in Network Marketing, Understand this: Anytime you’re asking another person to give you money in exchange for something, you’re talking about sales."
It's important early in the journey, that you realize that you are in the business of selling.
It's not enough to see yourself as someone who wants to help or save the world. You are an enterprise, an entrepreneur, a sales agent, and you are important to the value chain of the company you work with. Without the Network Marketing Industry, a lot of wonderful solutions and opportunities would not reach the end-users across the world.
Network Marketing is also known as Multi-Level Marketing and Referral Marketing. Basically, products or services are sold by ordinary people who refer the products or services to others. These people are then paid commissions and bonuses off the sales generated. Can you think about the sales job combined with affiliate or referral system?
This combination of skill set puts you square in the centre of a massive web of processes that connects manufacturing and services to their consumers.
Entrepreneur website describes Network Marketing (NM) as A business model in which a distributor network is needed to build the business. Usually, such businesses are also multilevel marketing in nature in that payouts occur at more than one level.