Good day this is Howard Martell known as the Homeprofitcoach located in Virginia Beach Va.
Today we are going discuss what network marketing is and how it one of the most powerful tools you have to make money online using your computer.
A little about myself been marketing for well over 30 years and over the past 10 years plus been concentrating on helping fellow affiliate marketers built a list of clients using nothing but graphical landing pages with our without videos. Prior to this journey served in the US Navy for 20 years honorably and was discharged as Cybersecurity Professional. My niche market is global and been able to built a list of over 92,000 and growing daily who have subscribed to my services.
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.
Network marketing is known by a variety of names, including multilevel marketing, cellular marketing, affiliate marketing, consumer direct marketing, referral marketing, or home-based business franchising.
Companies that follow the network marketing model often create tiers of salespeople—that is, salespeople are encouraged to recruit their own networks of salespeople. The creators of a new tier (or “upline”) earn commission on their own sales and on sales made by the people in the tier they created (the “downline”). In time, a new tier can sprout yet another tier, which contributes more commission to the person in the top tier as well as the middle tier.
Thus, the earnings of salespeople depend on recruitment as well as product sales. Those who got in early and are in a top tier make the most.
The Advantages and Disadvantages of Network Marketing
There is some stigma attached to networking marketing, especially those with multiple tiers, which can be characterized as pyramid schemes—that is, the salespeople in the top tier can make impressive amounts of money on commissions from the tiers below them. The people on the lower tiers will earn much less. The company makes money by selling expensive starter kits to new recruits.
The appeal of network marketing is that an individual with a lot of energy and good sales skills can create a profitable business with a modest investment.
A good rule of thumb, according to the Federal Trade Commission (FCC), is that single-tier network marketing operations tend to be more reputable than multi-tier schemes, in which people make money based on the number of distributors they recruit.
Some reputable examples of single-tier network marketing operations include Avon Products, Mary Kay, and Excel Communications.
Anyone considering joining a network marketing operation should do their research before making a decision. Consider these questions:
- Was it pitched as a chance to make money by selling products or by recruiting others?
- What is the track record of the company’s founders?
- Are you personally enthusiastic about the products?
- Are people you know enthusiastic about the products?
- Is the product being promoted effectively?
- Do you foresee a relatively fast pathway to profits or a long time treading water?
- Network marketing appeals to people with a lot of energy and good sales skills, who can create a profitable business with a modest investment.
- Beware of network marketing companies that create many tiers of salespeople.
- Thoroughly research the company before you join.
Now lets break down the other part of the word MARKETING
From the dawn of time society has been marketing, bartering, trading something that they have of value for a product or service.
When you played any sport you were Marketing your skills and abilities to make that team and excel in the area.
College you were Marketing your knowledge to try to get into the best school for your specific career field ect…
While developing your Resume for future employment or your first job Marketing.
Each day without us knowing it we are being marketed to whether it’s the skills and knowledge we provide to our employers if you still work W-2 job.
The same skills you learned can be applied to any business model it comes down to RELATIONSHIPS not PRODUCT OR SERVICES!
So as stated before in my prior video and article get to discover whether your prospect is Business Builder, or Customer or neither. Always thank them for there time and ask if they know of anyone who will be interested in hearing more about your company.
Contact me to find out how you too can enjoy these same tax savings as home-based business owner!