Network marketing, over the last two decades, has turned the tables on traditional or orthodox methods of operating a business. Almost every major retail company around the world now offers affiliate referral commission programs; so if we think about it, networking is becoming a way of life in the business community.
Especially during recessionary times, people need alternative ways to make a sustainable living. Once the alternative and unorthodox way of doing business, network marketing has now become an important part of the mainstream.
One of the reasons network marketing is often preferred over what is considered traditional corporate marketing is that each individual starts at exactly the same level—as an Independent Business Owner. Each person has exactly the same opportunity as everyone else and is compensated in direct proportion to the amount of continuous activity generated. It doesn’t matter whether we are degreed, old, young, experienced or never had a job. As long as we are committed, work hard, and never give up, we can and eventually will succeed. And, we don’t need to be salespeople to reap the level of financial benefits normally associated with company owners, sales managers and marketers.
Another reason more people are gravitating towards network marketing is that in this industry, we get to choose who to work with, when to work, and where to work! Unlike with a traditional corporation, we work with those whose activity generates income for us. We also may choose to work with mentors or leaders we are generating income for, because we are part of that organization. In other words, in network marketing, we choose to help each other and the acme of success is shared. Therefore, we have the incentive to work for the greater good of the organization or team, rather than having the mindset of working for “the boss, the executives, and them.”
More often than not, network marketing companies offer higher quality products than those offered at our local stores. The products are generally of an exclusive nature and cannot be found in traditional retail outlets. What is commonly perceived at face value is price. In network marketing, price is not a major issue because of the referral process.
When we purchase a product from a retail outlet with a 25 percent discount or rebate, for example, we've saved 25 percent on what we purchased. The difference between that perceived savings and what happens when we purchase product through network marketing is opportunity, where the concept of earning money regularly on products that we are already buying is the allure.
Imagine having a network of thousands of customers purchasing quality products or services each month where we receive a few dollars per month for each customer! These are products or services that we are already buying, and this is money that is normally paid to others. The temptation to sell these products via “auctions” that go to the highest bidder has a built-in trap—the key to success in any network marketing company is to keep the brand clean. What this means is that we need to adhere to the company’s rules, to retail directly, and to work honestly within the organization.
Trying to retail on non-company sites or outlets dilutes the brand and keeps people guessing about the product’s authenticity. It is what copycat companies bank on and what inevitably leads to confusion in the marketplace. IBOs who retail on non-company sites do a disservice to others but ultimately, to themselves, as it devalues the brand and leads to distrust.
Residual income is not really understood by most people who have never experienced it. Residual income in the case of network marketing can grow even after our efforts are put forth. Picture a songwriter whose music is played on the radio, sung at concerts, used in festivals and so on. The songwriter earns residual income each time the music is played, in addition to the original fee for writing the song. The network marketer earns on the original sale, but once someone new is sponsored, ensuing activity also brings in residual income. Industry statistics show that starting on a part-time basis, a sincere person who works hard and persists can build a meaningful residual income within a three to five year period to last a lifetime. Just remember to keep the brand clean!