Truth be told, if you have never had a serious conversation about the Network Marketing profession, then you probably don’t understand the magnitude of the industry. You may even think it is a pyramid scheme because you’ve heard other people call it by that name. What you may not realize is Network Marketing, unlike every other business is the exact opposite. I challenge you to find a company in Corporate America that does not operate as a pyramid with 1 CEO on top who can leverage every employee and earn the most money. In fact, your schools,churches and small businesses do the same thing, they leverage their employees.
Network Marketing on the other hand, is a brilliant business model that can provide an ordinary person with an extraordinary life. The structure is designed so anyone no matter what their skill level can become the CEO of their own business and life. It is not about timing, or who recruited you, it is simply about you.
For starters, there is a big difference between Direct Sales and Network Marketing.
So is it one of those things? If you mean is it a business that pays out more than $200 million in commissions every day? Then the answer is yes! If you mean is it a business that creates more women millionaires than any other industry? Then guess what, it’s yes again. Are those things even legit? The network marketing industry is a $182 billion industry. It is bigger than the NFL, movie and music industries combined. However, it still remains one of the most misunderstood business models.
Let’s face it, if we don’t understand something, we dismiss it. Or worse, when we think it is something it isn’t, then we miss out on something that could change our lives.
For starters, there is a big difference between Direct Sales and Network Marketing. In simple terms, direct sales means directly selling products to the consumer. It is linear income meaning you get paid a commission based on the sale. Most people in direct sales use home parties as a way to distribute their products. Often, the Distributor carries inventory, takes orders and delivers products. Many times, it is a one time sale. For example, think of a jewelry business in the home party space. The goal is to show the product and sell the product. Typically people buy once, sometimes out of obligation. Companies who don’t have a consumable product use this model to build their customer base and are constantly trying to sell products.
Now picture a company that has nutritional products. They give people products to sample, the consumer likes them, so a network marketer is going to show them how to shop, usually at a discount, and then when they run out, chances are they purchase again. As a result they build a network of people who are ordering their products on a monthly basis from your online store. You are Amazon.
In Network Marketing, while products/services are sold, the focus is building a network of people who are shopping for themselves online. Typically this method is done without home parties but rather, giving people products to sample and showing them how to shop for themselves online. In addition, the main focus is on recruiting people who want to build their own online shopping business. Network Marketing, if done properly, can provide an income producing asset.
A direct sales model typically relies on a constant flow of new customers. Network marketing, on the other hand, usually has repeat customers who continue to replace their products and shop online.
A direct sales model typically relies on a constant flow of new customers. Network marketing, on the other hand, usually has repeat customers who continue to replace their products and shop online. Furthermore, while building a network marketing business, the focus is training and coaching other business partners.
It’s much like a franchise model. If you have 1 location, people will shop at your store and you will make an income. If you have multiple locations and multiple partners, you will help them run their stores and you will benefit by adding value to them and showing them how they too can earn an income. If their stores perform better than yours, they can earn more money.
Most of us build people’s brands daily when we refer something we like. Companies rely on word of mouth referral to grow their business. Network Marketing is no different. Because advertising is word of mouth and not paid, Network Marketing products are usually superior to retail products. When you support someone in Network Marketing you are helping a small business. You are helping someone who is working to have a better life for themselves and others.
So is it one of those things? If you mean the best kept secret. Then yes, it’s one of those things!
Live Life On YOUR Terms,
The Savvy Sisters
Shari and Kim