What is network marketing? This is a common question. Many people have a preconceived notion of this industry — usually based on someone they know or something they heard about a friend-of-a-friend. I was the same! I was happy to shop occasionally at other people’s houses while having a drink and socializing, but I didn’t really understand why people would do business in this way.
Network marketing is about finding the most efficient way to get high quality products to the public marketplace. There is no reason why we need to pay for retail space, wholesalers, advertising, and warehousing (in addition to the actual ingredients and manufacturing process) when we buy something. I think that most people probably don’t realize that when they go to a drugstore and purchase some kind of face cream or lotion, the vast majority of the price they are paying is going to TV ads, magazine ads, the drugstore itself, the wholesaler who sold the cream to the drugstore, and possibly the company that warehouses and trucks the product to the store. It’s a small portion of that retail price that actually pays for the product itself.
Network marketing is a way to put the income in the hands of the consultants who are actually marketing the products in a grass-roots fashion. We eliminate the overhead of operation a “brick-and-mortar” store and we eliminate the tremendous advertising costs associated with TV/magazine/newspaper/online ads. Most companies in the personal care product industry have a huge budget for advertising (and isn’t it true that most of us believe that what we see on TV is true and must be great? Maybe it is, maybe it isn’t. But how do you know?) Consultants in the network marketing business are paid a portion of the sales that their network of clients consumes. These consultants generally get into the business based on a love for that product line and can become very knowledgeable about what they are offering. In addition, consultants can offer timely and personal help and customer service that large conglomerates have a harder time providing.
Why a “network?” If you have heard it said that it’s better to have to have 1000 people doing an hour of work than one person doing 1000 hours of work (or variations of this saying), you’ve heard the network concept. As I create a team and we work together, we create a residual income that continues to grow as various consultants on our team find new customers and new consultants. We have an incentive to help each other succeed, since we are a team that will continue to grow only as long as all of us are continuing to grow. I don’t know of many corporate environments in which the “boss” is directly compensated more when each of his/her employees does a better job. While no one is the boss in network marketing, the team concept creates powerful synergy and camaraderie. We are in business for ourselves, but we are never by ourselves.
I would be happy to explain further if you have questions about this type of business model. Please leave a comment below and I will respond!
All the best.