Network marketing is a type of sales strategy in which products are sold to customers without intermediaries and even without advertising. In this method, if the customer is satisfied with the products, he introduces them to others.
How to Earn Money
In network marketing, we face two general methods to increase sales and earn money:
1. Generating income through direct sales of goods to consumers
2. Monetization through sales by affiliates
Features of Network Marketing
1. Good Distribution
Products are not sold through a specific channel. Rather, the responsibility of selling is on the responsibility of people who are not directly employed in the organization.
2. Independent Business
Network marketers are known as independent business owners. Despite the fact that they are selling the product of a particular company, they work for themselves.
In network marketing, we do not face extensive advertising; Rather, advertising in this method is limited to word of mouth.
4. Lack of Fixed Rights
In this method, organizations use marketers who are neither hired, nor given a fixed salary, nor do they even have an obligation towards them. The only income of marketers in this method is the commission they receive from the sale of products.
Network marketers can receive products from the company and sell them to customers by applying their special discounts.
Disadvantages of Network Marketing
1. Prohibition in some Countries
Countries that recognize network marketing as legal and valid are limited. The use of this marketing is also prohibited in our country. So that at the beginning of every business, legal authorities take a commitment based on not using this type of marketing.
2. Slow Earning Process
No matter how wide our network marketing network is, the only way we can rely on it to make money is by combining the science and skills of sales ability and marketing ability. Marketing at this level is a type of direct sales and earning depends on product sales. The misconception that exists in this regard is that we can make money by standing aside and monitoring the sales of the subset. We need more effort to be profitable. We must know the name and brand of the products that we intend to sell completely. To be able to sell and to persuade people to buy using effective advertising.
3. The Problem of Face-to-Face Sales
Sales in this method are done face to face, and therefore there is a possibility of failure at the beginning of the matter; Because people do not have the ability to sell directly. This group of people entered this field without full knowledge of the conditions and difficulties of work, and for this reason, most of their sales are concentrated in the field of friends and acquaintances.
4. Tight Competition
We enter the world of competition when we have capabilities in competition. By the time we reach sales potential, even those who were our supporters in the beginning may no longer be willing to support us. Even in the worst case, they may enter a rigid competitive environment with us. These confrontations and competitions can be harmful to our business.
Up to Sum
In today’s marketing space, there are things like internet marketing, digital marketing, virtual advertising, etc., and the effectiveness of each has been proven. Network marketing is also of the same type. However, considering all aspects to enter a business is one of its requirements. Therefore, it is better to weigh all the disadvantages and legal restrictions before entering the business space.