For as long as business continues among people, marketing will remain a key aspect of it.
Network marketing comes with an edge over traditional marketing methods. This edge is twofold, it benefits both the business and its distributors.
For that reason, network marketing is here to stay.
Here’s how and why this modern way of closing sales is good for both parties.
Network Marketing Empowers Businesses to Minimize Losses
A company that doesn’t employ network marketing in its operations needs a permanent marketing team. These are full-time employees who are always on the payroll. And the company in question is obliged to pay them a certain amount every month or so according to their agreement.
Now the problem arises when permanent sales staff don’t deliver as much as anticipated. Because the business still needs to pay them their full salaries, whether or not profits are made.
Many companies are realizing this inconvenience and deciding to work out a system that cushions them from losing in such cases.
This system is network marketing.
And there are 2 main pull factors for companies to choose this business model:
1.Through Network Marketing, Businesses are Free to Only Reward Result-Oriented Actions
It’s as easy as that.
The spoken or written agreement between a network marketing business and its distributors is that benefits can only be awarded for sales and recruitment.
The more sales a distributor makes, the more money they rake in.
There are seasons when it’s relatively harder to sell certain products or services. This may be caused by weather factors, new industry trends, or fluctuations in the economy. In all these cases, a network marketing firm is shielded from losses that would otherwise result from compulsory wages to employees.
Why do these companies also emphasize on distributors recruiting more distributors?
The answer to that lies in the second reason why network marketing is a lucrative deal to a business.
2.Businesses can Reach More Clients Through Network Marketing
Every new distributor joining an MML company comes in with a new network of people that no one else could have reached. These can be friends, family, colleagues, team members, etc
And this is a major appeal to the business because it opens up a new set of people that will be reached on behalf of the business.
In fact, that is what network marketing is all about—capitalizing on a number of people’s networks to push a business’ agenda.
Most people feel comfortable buying from someone they know and trust versus a total stranger. They may have heard about or seen the same goods before but will only make a purchase when they see them with a familiar person.
So instead of having one centralized marketing team, a company gets to have several marketers in different shapes, sizes, and IQ levels. In addition, these marketers speak different languages which is a key component to them being excellently understood by potential customers.
Network Marketing Brings out the Best in Salespeople
So what’s in it for the individual joining a network marketing company?
Well, the sum of it is that salespeople who become part of network marketing gain invaluable skills that they can use even outside of that particular company.
This is tied to the fact that a distributor in a network marketing firm knows that he can only earn by selling. So the drive to learn the necessary sales skills primarily comes from that. In other words, network marketing creates leaders in its workforce—not followers.
Let’s explore some of the skills learned by network marketing personnel in detail.
Network Marketing Strengthens Negotiating Skills
Ever heard of the saying, You don’t know how strong you are until being strong is the only option you have?
Well in network marketing this is especially true.
A network marketer has to make sales in order to survive. And making sales depends heavily on the ability to negotiate.
Winning the attention of potential clients and keeping them engaged long enough for them to buy requires negotiation skills. Depending on the stage in the buying process, a salesperson may need to gently educate, boldly affirm, or graciously share testimony about his or her products.
In all this, he is bargaining for the other person’s time and attention. And there’s no better place to successfully learn this than to be in the game, having authentic goods to sell.
Network marketing teaches salespeople how to lead customers down the sales funnel
There’s something magical that happens when a person learns in order to teach. Having that responsibility on your shoulders somehow causes you to be thorough in your learning.
Every person selling something needs to understand the sales funnel. This is the journey taken by a potential client from the very first time they encounter a brand’s name to the stage where they make a purchase.
Distributors in network marketing are more likely to learn about this process in more depth because they know they have to teach the same to their downliners.
After all the rejections, negotiations, pitching, and the rest of the procedures involved in dealing with clients on a daily basis, a direct salesperson is equipped with enough information and experience to share with the next person they recruit.
The success of a network marketing salesperson is measure by the quality and quantity of recruits they produce. For this reason, a determined distributor will learn all they can so that they pass it down the line.
Network Marketing Gets Rid of the Fear of Rejection
We all have a certain level of resilience to rejection.
But when our success depends on results, that level increases. In simpler terms, where a salary is guaranteed to a salesperson, they can easily give in to the fear of approaching new prospects.
They most likely won’t go the extra mile to convince an over-the-fence client to buy. The reason is simple: not much is on the line if they don’t sell.
A network marketing distributor on the other hand will do what it takes to close a deal because it directly affects their success and earnings in the company.
Most people are terrified of approaching other people with a sales pitch. What if they think I’m too desperate for money? What if I don’t make sense? I may just be wasting their time, or worse— annoying them. Who am I to even give sales pitches?
All these are normal questions the average salesperson asks themselves, especially in the early stages of their career.
The antidote to that? Put yourself out there enough times to paralyze that fear. And being a salesperson for a network marketing company is one sure way to do that.
It may start off like an uphill journey but after a number of rejections, you will cease to feel terrible whenever someone is disinterested in what you’re selling, or downright unkind about it.
And you will understand that ‘no’ doesn’t necessarily mean ‘never’ in this business.
Don’t be Left Behind: Join a Network Marketing Company Today
Network marketing has become so widespread that for just about any class of products and services, you can find a company that offers it.
Not sure how to get started in it, considering your budget or schedule?
Well, we have your back. Having been in the business for years, we know what works and what doesn’t.
Contact us for a consultation on anything network marketing or forex trading.
Check out the CFX network marketing program if you’re interested in both: network marketing and trading the markets.