Network marketing is a method of distribution where a company goes direct to the consumers through a reputable force who effectively run their own home based business.
As a result, this cuts out most standard business expenses such as advertising. Staff are also paid commissions on sales, so there is no salaries been paid out. It is also known as “multilevel marketing” as you can get paid a smaller percentage on multiple levels of referrals or recruitment. In the past, commonly known network marketing companies were companies such as Tupperware. However, the industry is now thriving and goes beyond just house parties. It’s now a $178 billion dollar per year industry, with economic forecasters like Paul Zane Pilzer stating “the real growth has barely begun”
Here are 5 reasons why networking marketing is only going to get bigger:
- With companies downsizing, overseas outsourcing, robots and computers are taking over jobs. As a result, more people are now feeling unstable in their traditional careers and seeking multiple streams of income to secure their future. Network marketing is a popular choice as it can be done in your spare time and don’t have to quit your job to do it.
- More and more people are now getting involved in network marketing including Warren Buffett and Donald Trump. Magazines such as Forbes, Fortune and Success are also endorsing network marketing and a long list of best-selling business authors such as Robert Kiyoaksi (Rich Dad Poor Dad), T Harv Eker (Secrets of the Millionaire Mind), Brian Tracy (over 50 best sellers) and Paul Zane Pilzer (The Next Trillion) are promoting the networking business model power.
- Recent statistics showed that 84% of people trust word of mouth over any other form of marketing. This is perfect for Network marketing as it cuts out all the middle men, store fronts, advertising and marketing and is purely focussed around world of mouth.
- One of the downsides of network marketing in the past was the fear of harassing all your friends and family in order to buy your product. Social media has made this so much easier and provides a simple option to find people who want to buy your product – therefore, less convincing is required!
- Not so long ago many illegal pyramid schemes, chain letter schemes masked themselves as network marketing companies. Even legitimate companies had their flaws, requiring people to purchase up to tens of thousands of dollar in products. This led to network marketing having a bad reputation and there are many examples of false and misleading marketing and generally unethical practices. The good news is that network marketing has now been ‘ cleaned up’, for example the Direct Sales Association has worked hard to make sure all member companies are running ethically and protecting consumers. The good news is that today, the risks are lower than ever and it is a far better industry to be part of.
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