“Below are 3 simple steps to understand How actually network marketing business (MLM) works for an Individual.The concept of Network marketing is a unique and is very much different from the traditional way of doing business. It is not just any salesman job to begin with, one needs entrepreneur skill to grow the business and form a network of like minded successful people achieving same goals.”
Network Marketing business is also very famously known as MLM (Multi Level Marketing) or Direct Selling business which involves only 3 things 1) Manufacturers of MLM products 2) Distributors network 3) Consumers or The buyers. Where as any Traditional business involves Others like Stockist, Whole sellers, Retailers. So how does Network Marketing works differently compared to Traditional business ?
Simple, Here the end Customer who uses the products of network marketing companies are themselves the distributors and promoters of the business. They simple join the business which generally starts within few $100 dollars, Starts consuming the products and also gets a new home based business opportunity to sell the same. This way the Sales, Promotion and marketing Work is done by the Distributor who is now called Prosumer instead of a Customer, where as the Production works is taken by the MLM company. So it becomes a home based business work to enjoy all products in Discounted rates being a distributor, Generally 20-30% discounts can be enjoyed on all the products being member of company.
Next is a business option for all distributors to enjoy commission’s working with network marketing company to increase there Distribution network by recommending and duplicating whatever he does to others and bring more like minded people in there network group to duplicate what ever he does. This way, More people will consume more products and every one gets some fixed commission on entire sales volume.The whole process is called LEARN, TEACH And DUPLICATE (LTD).
Step 1. Learn the MLM business.
This is a learning and very basic step to know how network marketing works by being a student of the business and following the MLM system. Work involves by Purchasing and consuming business products and then recommending and selling the same to friends and relatives earning retail profits of about 20% on MRP of the products. Next one needs to attend business meetings which are generally weekly/monthly and learn business skills by listening to leaders of business via Books, Tapes and various business functions. Best example is by understanding how Amway business works. They follow the Britt World Wide System which has 4 basics steps, 9 core steps and 3 cardinal rules.
Next comes the MLM plan showing, Like Amway Marketing Plan one needs to explain in details to other friends and relatives how this business works, What are Retailing benefits, What is Commission structure and Royalty Income. A very important Work of Distributor in MLM business is to bring out the Dreams of people during session and show how Time, Money and Securing is gained in business.
Step 2. Teach your Downline Network
Once you have sharpen your MLM skills, next step is to teach all that skill’s to your down line network and new distributors/members in the business. One needs to Mentor there group properly motivating and showing the leadership examples by following all ethics and rules himself.
Step 3. Duplicate the Network Building Process
Once step 1 & 2 are taken care the process of duplication begins as the new distributor will start doing all the steps and bringing more people in the network and the cycles gets repeated again and again creating ongoing income.
Working with any Network Marketing company needs consistency and persistence following basics and doing the same again and again till you reach your goal. Its a simple business of duplication.
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