Network Marketing (Multi-level Marketing) is probably one, if not the most controversial marketing and sales approach and strategy being used by companies to generate sales and profitability. Network Marketing, also commonly known as Multi-level Marketing, is defined as a marketing and sales strategy wherein products and services are marketed in a very unconventional manner. Network Marketing or Multi-level Marketing reward system is not only based on the quantity or quality of the sales generated, but also on how these sales people recruit other individuals who would join the company and would serve as their â€downlines’, promoting and selling the same products and services the company offers. There is then, a hierarchy formed, wherein the commission is usually dependent not only on the volume of products a particular sales person was able to generate based on his own individual efforts, but also on the sales performance generated by the sales persons who ranks under him and are commonly referred to as his â€down line organizationâ€. In the process, the more people who rank under that particular sales person, the better chance he gets to receive a higher commission since there would be more people doing sales efforts and in turn providing more earnings for him. For a company who practices Network Marketing, there is a very big opportunity to earn big and create a huge customer base it can utilize to further promote its products and services. The downline organization does not only serve as customers who merely patronize and buy their products. They would also serve as sales agents and product promoters since they would need to sell the company’s products and recruit more â€downlines’ (which would again expand the company’s client base and promote product awareness) for them to be able to earn commissions. At any rate, this set-up is actually a win-win situation for the company. Network Marketing, like any other marketing strategies, has its own pros and cons. For one, Network Marketing may be misrepresented as an illegal activity if it is focused more on pyramiding or getting commissions from recruiting new members which is actually not allowed on certain areas in the US and in any other countries in the world. It is because the pyramid scheme is considered as a non-sustainable business model that involves the exchange of money primarily for enrolling other people into it, usually without any product or service being delivered. And since there is actually a very thin line between the two, Network Marketing usually gathers unsolicited bad publicity and skepticism if not communicated clearly. Second, it has been said that the drop-out rate for MLM is enormous. Some claims that 98% of those newly hired/recruited individuals will drop out immediately, meaning that only 2% will continue with the program over any long period of time. Others say that companies who practices MLM usually do not fulfill their promises. With the emergence of the multiple bad write-ups on MLM, people do not anymore believe on it. On the other hand, Network Marketing may provide a very good opportunity for individual. On how you would fully utilize Network Marketing’s benefits would really depend on how you would be able to choose the right and perfect MLM Company for you. Fortunately, there are ways on how to catch the best and suited MLM company who would be worth investing on. 1.They should have an established and very marketable product line or service, and strive to improve, innovate, or add to the existing line-up. 2.Recruiting new distributors will be a streamlined process, and the company will not be involved in Pyramiding. 3.As a company, they need to have a solid track record and good work ethics. 4. It should provide a one-on-one training, as well as motivational seminars and a full complement of training materials. 5. They will provide an excellent bonus plan with many incentives for those who would strive for excellence. 6.Well-established MLM companies should be able to provide you with resource materials to aid you in not only product sales but in recruiting. 7. They present a strong support system. 8.There is a healthy team competition. 9.There will be a successful business and marketing plan in place which can be utilized and be used for direction. 10.It offers an opportunity for long-term career path. To sum it up, the end results would still depend on how you see things, do things and how you were able to accept the risks and manage them so that in the end, it would still serve for your greater good. Remember that all businesses have their own battles. The question is, how equipped are you to stay on the game and emerge as the victor thereafter. Still, the choice is yours to make.
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