Network marketing is a marketing method wherein people look for potential customers by using representatives, presenting to them the products and services offered by their company.
Network marketing has become one of the most popular businesses these days, with so many companies offering this business opportunity to several people. This business is so popular, in fact, that even online network marketing exists.
How does network marketing work?
It basically involves having a pyramid, hierarchy or a team under you. First, you talk to potential customers these may be your family, friends, previous colleagues, your neighbors or even someone in the mall or another public place or hangout! Next, you present to them the products and services of your company. Then, usually what happens is you will also show the people you are talking to how to earn and how the business works, i.e. basically what you are doing now, which is talking to potential customers, presenting to them the products and services of the company and then telling them how to earn and how the business works.
The whole principle of the hierarchy works like this:
For example, you are A, and you joined a certain company as a representative. Then, you meet up with potential customers to present the business to. Those who are new to network marketing usually present the products and services to their family and friends first, as a starting point. Next, when people are interested and want to join, you sign them up.
They will then be placed under you in your team, because you are the one that marketed the business to them. For example, two of your friends or family joined the business under you. Now, they can be referred to as B and C and they are now representatives of the company as well, through you, A.
Once you endorse the business to more people, they will be added to your team and this is how you earn. You earn this way because you are marketing the companys products to more and more people, meaning, more customers for them and more money for you.
B and C have their own team now. Basically, they should do the same thing that you, A, is doing, so that they, too, can earn. Once B and C have their own team, they are the A in their group, meaning, the leader. For example, in Bs team, he/she is referred to as A, because it is his group. The first person that joins Bs group will be referred to as the B in his team and he is the representative of the company through the B of your team. This is where the hierarchy comes in. You, A, recruited B and C, who should create their own team, therefore, they are now leaders, A, of their group. The first A is the highest in ranking, followed by B and C, and then, their respective teams. Then, the same procedure just repeats itself.
What is online network marketing?
Online network marketing basically is an updated version of the former. The job is the same, but, it is done on the internet. A talks to potential customers by chatting or even posting pictures on social media websites like Facebook and then distributing the pictures to friends and family on Facebook. Signing and recruiting people to ones team can even be done online.
To achieve success in this particular business, you should not give up on presenting it to potential customers. Once you give up, you wont be able to earn anything and your business will go nowhere.