There is much confusion in the marketplace with the term network marketing. It is used in many different applications and by many different companies to describe their business. We are going to tell you a bit about network marketing so you will be able to recognize the structure and be comfortable with it. We are going to take the confusion right out of the equation.
Network Marketing and Multi-level Marketing are generally considered to have the same meaning and are used interchangeably by many in the industry. Network marketing is becoming more of the popular buzz word as it does not have the same negative connotation that many feel the term Multi-Level Marketing has gotten over the years. Multi-level marketing emphasizes and describes the compensation structure while network marketing refers to how the product is distributed.
Network Marketing is directly related to the direct selling industry. Direct Sales is the act of selling products one on one to people normally as a home based business. It often involves selling online as well as offline. There is also a difference in products. Things that you would correlate to a home party type of business would be considered in the direct selling realm.
Network Marketing and Direct Sales do work similarly in their structure but differently in how the sale and the recruitment is handled. There are several different types of marketing systems that those in network marketing will use. These are very important to the growth of the business. The first is to define and have a way to generate your leads.
That method could be to use an email sign up on your website. It could be to purchase leads from an independent company. It could also be placing radio or newspapers ads. Whatever the method, it needs to be consistent and effective at bringing in leads.
Make sure to track your leads so that you know what is working consistently for you. Change the lead generation areas if they are not producing. Some network marketers invest a lot of money into leads and ads, so tracking will help you make sure they are working at 100%. This is a critical piece of being successful in this type of business.
The term leads will refer to both building your retail business and building your recruits. You need a way to find people to purchase your goods and in order to increase your income; you need a way to build your team. As you are speaking to people you will be able to identify those that may been looking for product and those that are looking for a business model such as yours.
Within the recruiting system you develop, you will need to include ways to educate your prospects. Prequalify them so you know they are interested in joining the team. Make sure they understand the business model and what they will need to do to be a success. This allows you to find those that truly are committed to the network marketing structure and no surprises will come out down the road.
Once you add team members then you need to work with your new recruit to make sure that they know exactly what to do to become successful. This could include website trainings, conference calls or tracking informational sheets. Whatever you decide works best for your business. In network marketing, if your recruit and team are successful and makes money, so do you.
Network marketing is an ever increasing portion of the direct sales industry. Understanding its differences and embracing them will help you recognize the different business models that are set up within this type of structure. You will learn to be able to work successfully within that structure.