Is Network Marketing Success Luck or Skill?

Network marketing otherwise known as multi-level marketing (MLM) is one of the fastest growing yet most misunderstood methods of moving products in use today. It has been in existence since 1960 starting from the United States of America. The first network marketing company that started in history is known as AMWAY which is the short form for American Way. Presently Amway is quoted on the stock exchange and their annual sales turnover is in excess of $200 billion. Certain people see this industry as a resort for persons who could not get a place in the traditional corporate business world i.e the white-collar job. But network marketing just like every other product/service distribution model is an honorable means of livelihood and business model. What is network marketing? It is important you understand what network marketing is so that you can correct the negative uninformed knowledge that is planted in the minds of so many people who were listening to those who could not wait to understand how this industry works before they quit in their network marketing business. Let us start from the basic. Marketing simply means moving a product or service from manufacturer or provider to the consumer. Network marketing refers to the system of compensation provided to those persons who are causing the products to move or the service to be provided. Multi-level marketing or network marketing means more than one (network) level.

There are only three basic methods of moving products. The first is wholesale/retailing model. This is the traditional distribution model which uses the advertisement media and wholesaler to move their products. It is the most common model but it is aimed to enrich the already rich wholesalers and advertisement agencies. The second is direct Sales. This just like network marketing is a model where the manufacturer or service provider sells the product direct to the consumer. But sales instead of sharing are emphasized. The third is network marketing. This is a model where the manufacturer or service provider offers their products and services direct to the consumer at the cost price and also pay them compensation for buying their products/services and at the same time for sharing the products/services with their friends, associates and relations.

Most objections that people have about getting into network marketing are due to not realizing the difference between network marketing and direct sales method of marketing. Network marketing does not necessary mean door-to-door selling of products but sharing of valuable products and services. What I mean by this is that you use the product which is of more quality than their rival in the market and at the same time share same with others. (Mostly family, associate and friends)The most significant difference between MLM and direct sales is that you are in business for yourself. But in direct sales you are not for yourself but for the company you are representing. Being in business for yourself, you are buying the products wholesale from the company you are representing. This means that you can (and should) use these products for your own consumption. Note that many people get involved in a company at first for this reason alone, to buy wholesale. And many of those will get serious in building a business along the line. Since you are buying your products at wholesale, you can, if you wish to, sell those products at retail band make a profit. The most common misunderstanding about MLM is the notion that you have to sell retail to be successful. The most important point is that you should let your sales come as the natural result of building the organization. More people fail than succeed by trying to do it the other way around, i.e they try to build the organization by emphasizing selling.

The word selling triggers negative thoughts in the minds of about 95% of the people. In MLM you don’t need to sell the products in the traditional sense of the word. However, PRODUCT DOES HAVE TO MOVE or nobody gets paid. I define selling as calling on strangers and trying to sell them something they may neither need nor want. Again, product has to move or nobody gets paid! To understand this, I will adopt Metcalfe’s Law which states that a network’s economic value equals to number of users squared. (Robert Metcalfe is one of the people credited for creating the ethernet, the earliest form of internet) Stating Metcalfe’s Law in simpler terms, if there exist just one telephone, that single telephone really has no economic value. The moment there are two telephones, according to this law, the economic value of the phone network is now squared. That is, the economic value of the network would go from zero to two squared which is four. Add a third phone and the economic value of the network is now nine. In other words, the economic value of network goes up exponentially, not numerically. Similarly, in MLM when you build an organization, you are building a network through which you can channel your products. Retailing is the foundation of network marketing. Sales in MLM come from members sharing with their friends, neighbors and relative. They never have to talk to strangers but what they do is to consciously make more friends and in share their products with these friends.

Why You Should Market Your Business Online

If you are not already marketing your business online, it is time to start doing so. Although there are a few exceptions, just about every business can benefit from online marketing. There are so many advantages to this type of marketing. First of all, marketing your business online is extremely affordable. Other advantages to marketing your business online include the ability to reach a large target audience, the ability to reach potential customers all over the world, and the ability to customize the marketing for different sectors of the target audience.

The affordability of Internet marketing is one of many reasons why business owners are turning to the Internet for advertising. Advertising online is incredibly affordable, especially when you consider how many potential customers a business owner can reach with an online marketing campaign. Most methods of online advertising are quite affordable and some of them do not have any direct costs. For example, you may choose to market your business online by participating in industry forums and posting links to your website whenever it is appropriate. In this case, the cost of creating and maintaining the website is insignificant compared with the number of potential clients you could reach through online marketing. Additionally, the costs associated with posting links to your website are incidental. You could consider the cost of having access to the Internet as part of the budget but you probably require Internet access for other reasons as well so it is completely worthwhile.

Reaching a large target audience is another very worthwhile reason for marketing your business online. You may have spent a great deal of time and energy doing market research and determining who your target audience is. You may have also spent a great deal of time trying to figure out the best way to reach this audience. This is a very sound marketing principle but as it applies to marketing on local television, radio, and print media, it only allows you to reach a limited audience. However, when you take your marketing to the Internet, you automatically increase your potential target audience tremendously because you now have the ability to reach members of your target audience around the world.

This ability to reach customers around the world is another major advantage to marketing your business online. Regardless of where you live and operate your business, you have the ability to reach those who have an interest in the products you sell or the services you provide no matter where they live. This makes it possible for you to do business with customers around the world.

Likewise, the fact that the Internet is available 24 hours a day is also very beneficial to those who choose to market their products or services online. Shopping for products and services in person can be very difficult, especially for individuals who work long hours or those who work unusual hours. These working conditions make it difficult for those individuals to do business and to purchase the products and services they need during regular business hours. However, business owners who have an online presence are much more convenient because, unlike stores and calling centers, the website never closes. This convenience gives potential customers the ability to view products and services, compare these products and service with the ones offered by competitors, and make a purchase at any hour of any day.

Learning about Internet Marketing
Internet marketing is not overly complicated but it is also not a process in which anyone can excel without making attempts to learn more about the subject. Business owners who do not know a great deal about Internet marketing but who wish to integrate Internet marketing into their overall marketing strategy should carefully study the basic principles of Internet marketing before launching their online marketing campaign. Fortunately for those business owners, there are a variety of options for learning about Internet marketing. Those options may include online research, reading published books, and studying successful Internet marketing campaigns.

Researching Internet marketing online is one method that can be used to learning more about this topic. This type of research can be very informative and can provide the business owner with a great deal of advice and other information. However, it can also provide the business owner with a great deal of misinformation. When researching any subject online, it is very important to note that not all of the information available online is accurate. This may be due to a variety of factors including content which is written by those who do not have a great deal of knowledge about the subject matter as well as content which was written years ago and is outdated. This can be frustrating but fortunately, business owners can still learn from the Internet. This just means they should be more cautious about accepting information as accurate and may wish to verify the information they obtain before implementing an Internet marketing strategy.

Published books are another valuable resource for learning more about Internet marketing. There are a variety of books available that focus on this subject and provide a wealth of useful information. When selecting a book for use as research material, it is important to choose a book that received positive independent reviews. It is also important to choose books that were published recently. This is important because the Internet marketing industry is evolving continually and a book that was published only a few years ago may be outdated and may lack information on some of the new developments in the industry. The appeal of using published books to learn about Internet marketing is that you can keep the books on hand for easy reference when you launch your Internet marketing campaign.

Finally, business owners can learn a great deal about Internet marketing simply by studying successful Internet marketing campaigns. If your business offers products and services in a particular niche, consider entering relevant terms into popular search engines and studying the websites of some of the highest ranking businesses. This can provide you with a great deal of insight into what these business owners are doing, which may be contributing to their success. Examining everything from their website design to their search engine optimization strategies and even the content on their website can help you to determine why they are more successful than you. You should also consider how they are marketing their website, which may include banner ads, affiliate marketing programs, or other types of advertising. Armed with this information, you can take the opportunity to implement changes to your own website and marketing strategy, which may help you to achieve a greater degree of success. Care should be taken to not copy anything directly from your competitors but rather to try to emulate their degree of success in your own way.

Conclusion
If you are a business owner who is reading this article and you do not already have a strong online presence, you need to immediately start learning more about the world of Internet marketing. This is so important because, if your competitors are marketing online, you may find that they are gaining a steady advantage and are becoming more appealing to potential customers. Before too many of your potential customers become loyal customers of the competition, it is time to start figuring out how you can market your business online and keep up with the competition.

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Michael Cohn is the founder and Chief Technology Officer (CTO) of CompuKol Communications. He has over 25 years of experience in IT and web technologies. Mr. Cohn spent a significant amount of time at a major telecommunications company, where his main focus was on initiating and leading synergy efforts across all business units by dramatically improving efficiency, online collaboration, and the company’s Intranet capabilities, which accelerated gains in business productivity. He also reduced company travel and travel costs by introducing and implementing various collaboration technologies.

Internet Marketing And Offline Marketing Combined

I know for me, when it came to making money in my offline business, internet marketing was totally out of the equation. I didn’t even know how to build a website as opposed to selling products on my website. But now I can officially say that I know what I’m talking about when it comes to interne marketing. It took me 10 years to learn but, I’m still happy that I knew how to make it work.

So are you looking for way to make your business work on the internet? Well believe it or not, it’s not that hard to do at all. In fact, I want to show you some of the benefits of marketing your business on the internet. Here’s the first tip:

1) PPC

PPC stands for “pay per click” advertising, and it’s the fastest way to start earning money from the internet. What pay per click does is that you put up an ad to run on the major search engines (Google, Yahoo, and Bing), and you get charge a small fee for everyone who clicks on your ad.

If you’re operating in a local market, you can easily scoop up all of the traffic that people will search for when they type in a query related to your business. So someone may go to Google and type in “Chicago dentist”. When someone types in this search query, you will show up first in the results. Here’s another way to operate your business online.

2) Google Places

Again, when someone types in a query related to your business, you want to be first on something called Google Places. Make sure you fill out everything that you can including pictures, images, and even videos. Plus, you will want to do the same thing for something called Yahoo Places.

Here’s another tip for using the internet to market your online business.

3) Email marketing

With your own email newsletter, you can send periodic updates to people in your niche, and interact with them on a weekly basis. Consider mailing to your subscribers once a week. This is a great time limit to put on following up on your market. I think to make email marketing very effective, you need a lot of subscribers, and people who will follow you no matter what you say in your email newsletter.

To build an email list like this, you have to do all kinds of unusual things to make your newsletter a success. You will want to tell your prospects about yourself, you have to make jokes, and you have to keep them informed of your personal life. People will pick up on this, and will interact with you on a daily basis.

Hopefully, you’ll be able to use these tips to have the kind of business success as possible. I think once you put them into action, you’ll be able to have the kind of success that you dream of. So start putting them into use today.

Good luck with using these tips to have the kind of marketing success that you crave for.