What Is Network Marketing, History, Advantages, Tips, And More

What Is Network Marketing,: They say that the best marketing happens by word of mouth: people pay attention to recommendations made by people they know, so why not use that principle to grow a business and income for whoever wants it? Let’s talk network marketing.

What Is Network Marketing?

The company responsible for the product or service is responsible for everything that has to do with its design, manufacturing, raw materials, sales strategies: official channels, marketing campaigns, improvements, innovations, or novelties in its offer.

Distributors are responsible for bringing it closer to their network of contacts to sell them and take them to end customers, obtaining a profit percentage for each transaction.

History Of Network Marketing

The history of network marketing can trace back to the last century when American businessman Carl F. Rehnborg began marketing vitamin supplements. His first strategy was to give away samples among his acquaintances until he realized that they did not take him seriously because they were free.

When he charged for them, even among his acquaintances, word spread among friends and acquaintances, and in a short time, his company, first named California Vitamin, became Nutrilite (now Amway ), in honor of the most popular product. Famous from its catalog, for the year 1939.

Seeing that referral sales were working, Rehnborg thought of a direct sales method to grow independent distributors. Thus was born multilevel marketing, now known as network marketing in its best practices.

Over the years, and by demonstrating its effectiveness, other ventures took the model, focusing mainly on homemakers, students, or people with part-time jobs looking for extra income.

Five Advantages Of Network Marketing

The direct sales model of network marketing offers several advantages for companies and distributors. We highlight the following:

• It will focus on the product, testing its distributor. And becoming its leading promoter.
• It makes customers more loyal because people trust someone they know who has already verified the benefits of the product or service they are will sell.
• Customers can become business partners, opening up opportunities in new territories without investing in complicated infrastructure.
• If you are a distributor, you manage schedules, orders and you are also in charge of promotional activities among your acquaintances. Surely you have already heard this in other places: you are your boss.
• After knowing these essential aspects, it is time to delve into how it works, especially since good practices have nothing to do with other models, such as Ponzi or pyramid schemes.

How Does Network Marketing Work?

It is a direct sales model. It streamlines the communication of new products or prices, the order process, batch shipment, and the sales report. Will need no intermediaries between the company that manufactures the good and its distributors, so their contact is direct.

The company takes care of everything that has to do with the brand and its offer: from the raw material to its official promotion channels (which help establish its presence in the target audience and build a reputation). For example, distributors do not have to make a website, manage social networks, or pay for ads in digital media.

Distributors create networks with other people who can become loyal customers or distributors in their network. In this way, it is possible to be a recruiter in charge of a group of distributors, which improves profits for them and the company. In addition, it will help them expand their territorial reach or enter new local markets.

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Therefore, We Want To Give You Some Tips For Network Marketing.

Put The Product, Product, Or Service In The Center

To recommend a product, it must have met their expectations. That is why it is essential that the company does not lie about its promise of value, that its distributors have already proven its effectiveness, and that they agree that the price-quality ratio is fair.

Take Advantage Of Digital Tools

Although the company is in charge of the official channels on the web and social networks, distributors can also create groups on Facebook or profiles on Instagram, endorsed by the brand, to communicate product or service news among their contacts.

Reward Referrals And Referrers

In other words, it promotes exclusive benefits for people who make a purchase or sign up as distributors. Thanks to the recommendation of someone who is already part of the network. And don’t forget to reward the latter when it’s time to calculate extra commissions.

Take Into Account The New Consumption Models

If before the usual thing was to organize meetings at home or sell at a certain point periodically. Now there are options for people to know the products and services on the Internet and buy them right there.

It is unnecessary to create robust e-commerce. Thanks to platforms like Instagram and Facebook having formats for stores and catalogs in their profiles. Similarly, look for online payment options that offer cheap shipping in a small radius.

Independent economic activities, both for professionals and people looking for extra income. Have created tools that do not require significant investment and are within reach of any pocket.

Look For Groups Or Places Where Network Marketing Is Supported

As it is a model that attracts many people, both to sell and buy. It is good to locate sites that promote activities related to network marketing. This way, it is possible to get in touch with likely distributors that increase the scope or strengthen customer relationships.

It is also possible to collaborate with distributors of other brands with a similar audience but offer solutions that do not compete with your proposal.

Track Your Referrals With A Link Or Code

There is the referral link and the referral code, which your customers can share; in this way, you can identify the people who buy from you thanks to someone else’s recommendation. They have a traceable ID, so you get data on traffic coming to an offer or purchase page and who will get compensat for the referral.

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