The 21st century has ushered in the era of Business Networking; chains of lined individuals that carry out some form of informational or financial transaction. This dispensation has been so drenched in the pools of networks, so much so that the renowned business writer, Robert Kiyosaki have proclaimed, “the richest people in the world build networks; everyone else is trained to look for work”. Some other entrepreneurs like Sallie Krawcheck consider networking to be “the No. 1 unwritten rule of success in business”.
Multi-Level marketing or Networking Business, refers to a business that modeled in such a way that the goal is effective goal is the distribution of a product. Usually, there is a parent company that manufactures a product, then a network is established to see to the marketing of such product. Profits are often made from basically two sources:
By selling the product itself
By getting commissions on any sale made by a downline (recruited member)
There are a bunch of networking businesses in operation currently; from Golden Neo-Life Diamite (GNLD), to Trevo, Forever Living, Amway, Tupperware, Avon, and Mary Kay Cosmetics.
Networking works in the following scheme:
An organization decides to stretch the scope of their distribution channels, and embark on rewarding their distributors per volume of sales they make. This motivates them enough as to boost their efforts towards making more sales. They put in wholesome energy in the process, or choose to recruit other individuals to do their bidding, while they still get their commission from each sales made.
The recruited downlines also get to recruit other individuals and thus get their own rewards from the sales power of the products. Now, at every level of the network, there is some commissions to be earned; and the commission waxes stronger with advancement in the chain.
There is a clear line of distinction that demarcates true networking business from Ponzi or pyramid schemes that emphasize recruitment over distribution of a product.
There are different structures the scheme can take:
Unilevel Compensation plan: in this plan, you get all your downlines directly under you, and as such you earn from every sales or purchase they make. It’s a “V” model in which your downlines recruit, and improve the strength of the network you initiated. This is a great model for those who have great marketing skills. You can earn up to as much as 7 levels.
Binary Compensation plan: this is much unlike unilevel, in the sense that you do not keep all the persons you recruited directly under you, but two. Those two persons would go on to do more recruiting and stretch the network. So its an ever-stretching two-legged network.
Matrix compensation plan: Here there is precise configuration that the network is preplanned to take. For instance a 3×4 matrix model implies that you can recruit only 3 individuals who can go on recruiting as well; then you can earn from the network up to 4 levels.
Break-Away compensation plan: In this distribution model, you get to recruit as much as possible like unilevel, then break out of your upline chain. You still get to earn from your downline, however you stop to contribute to your upline. If you are not a vast marketer, this structure can turn out to be a disaster for you.
Why Networking Business?
There are a number of reasons to choose networking marketing viz.;
• Low Cost of Starting up and sustaining Operation: It is unlike the usual brick and mortar buildings that require huge amounts of money to establish a company. Here, with a few bucks, you are on your way to your company. Additionally, this reduces the risk incurred in running this business itself.
You should have an upline already who mentors you in your new business. Now it is this individual that guides you in the business, and helps you make good returns on the investment you have made.
• Leverage Efforts: In network marketing, there is a joint strive towards attaining a goal. This is a good attitude it promotes; asides the promotion it does to your purse.
• Possible Financial Rewards: Networking is one of the businesses that promises returns that can blow off the imagination of any entrepreneur. As the network matures, it rakes in income that would provoke questions; questions that have an answer anyway.
The best part for many is that you can keep fetching residual income, at some point without having to step out of your house.
• No need to hire Staffs: You do not need enployees to run this business; this is one great part of the business. You only get people working on their own. What they do is best described as building their businesses independently. Except from networking business, no business works this way.
Having said enough about networking business, the next question to be discussed would be “How can I get started?” There is the strong tendency that there is an interest already ignited in your mind if you have thought of this question before you read it.
Without more ado, the following steps are sufficient to get you on a stable foot in networking business.
1) Decide what product(s) you intend to distribute in the network: Is it health products, cosmetics, technological gadgets? Usually, it is advisable, you make some considerations before reaching conclusions as to the product you are poised at networking.
a) You have an affinity yourself for the product: it would help you quickly develop the passion to promote and marketing it effectively.
b) Product Impact: The product surely has an impact it would make in the consumers that buy it. This would enable easy ascension on the ladders of success in the market. You would not have to do all the advertisements yourself anymore.
c) Mobility of product: You have to consider a product that is easy to move about. Marketing a refrigerator in a network would make the entire activity tasking for you to handle.
d) Integrity of the company that manufactures the product: You can test this by examining how long the company has been in existence and their records. If they have a record that proves their reliability, then stick with them.
Upon decision to go with a particular product, you simply subscribe to through an upline to join the network of distributors.
2) Build Web Presence: Now you know what makes network marketing a grossly viable option to explode the distribution of your product. In modern times, the internet is the most promising tool of marketing. To explore the option, you would need to go online; take advantage of the ever growing tree of internet users. There are two ways you can go about this:
a) Set up a website: One that showcases your products, and does enough justice as to telling visitors all about the products—its benefits. Also, you should leave your contact information, and steps for prospective consumers to purchase the products, and get it delivered to them.
b) Social Media: Millions of people use social networks (facebook, twitter, pinterest, etc.) on a daily basis, and there is the high tendency you already do. You can for instance, create a facebook page that describes your product and network; you can also sign up for a professional LinkedIn profile for your business as well. Exhibiting your network on these platforms is a sure way of fetching good leads.
Now, you can pay for a website to be designed for you or you can choose to design the website yourself. Yes, you can actually set up a website yourself! I would recommend you use WordPress, and in a matter of minutes you have a platform already. You use free themes available, so far as they can suit your purpose. Then choose a domain name, host the site, and that’s all.
3) Equip yourself with a Marketing Strategy: At this point, you already have an idea what networking configuration you are subscribed to. You would have to develop a strategy to invade the market, whether via website or social media. Some network marketers adopt the approach of having to reward referrals to their website, or those who click on their links. You must weigh your potential to gain before implementing a strategy. Experts often advise that once you have taken to a strategy, it is to best interest of your network that you do not change it constantly. It has a way of decreasing your income.
4) Promote your network: Do this using any advertisement platform you can lay your hands on. The current trend now is the use of videos. Most marketers consider the use of videos a method that creates an unusual personal connection between them and their prospective customers. It enhances trust, and trust is the fuel of networking business.
You can also do mouth-to-mouth talking with relatives and friends, and then go on to recruit those ones that indicate interest.
5) Join a group of Internet/Network Marketers: The coaching experience you get from these associations can hardly be overemphasized. There are a great deal of invaluable assistance you can be of to someone, and someone can be of to you. You can face challenges on your way as a network marketer; you can receive advice on how to handle such situation from someone who must have experienced.