Recently I received a query, from a follower who asked me, What is Network Marketing!
This individual was confused,
Automobile Marketing would obviously be about selling cars and trucks!
Do Network Marketers sell NETWORKS!
Perhaps the definition from Investopedia will explain …
DEFINITION of ‘Network Marketing'
A sales strategy in which a salesperson attends meetings of organizations whose members are likely to be interested in a particular product or service in order to develop a book of business.
The three major components of network marketing involve prospecting (finding sources of potential customers), following up with inquiries from interested parties, and selling the good or service to the prospect.
Once prospects are cultivated, the salesperson will try to use his or her relationships with the prospect to get in contact with other individuals that the prospect might know.
Well … NO … We have a problem here!
The following definition is closer to the TRUTH …
Definition: 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. .
Network marketing is a type of business opportunity that is very popular with people looking for part-time, flexible businesses.
Some of the best-known companies in America, including Avon, Mary Kay Cosmetics and Tupperware, fall under the network marketing umbrella.
Network marketing programs feature a low upfront investment — usually only a few hundred dollars for the purchase of a product sample kit — and the opportunity to sell a product line directly to friend, family and other personal contacts.
Most network marketing programs also ask participants to recruit other sales representatives. The recruits constitute a rep's “downline,” and their sales generate income for those above them in the program.
It is no wonder my follower was confused … the term Network Marketing is not consistently used to describe the same thing!
Eric Worre is a respected leader who has spearheaded a campaign to professionalize the Network Marketing industry … he describes Network Marketing as ….
Consider this video from 2012 … much of what is discussed still holds true
Consider the future of Network Marketing from the 2014 perspective of Robert Kiyosaki, multi-millionaire, entreprenuer …
The future of Network Marketing is bright … don't ignore this as a legitimate and profitable way to earn an income, either full time or part time or in retirement.