Do you want to become your own boss, work flexible hours and make money? Of course you do. One way to get to this stage in your professional life is via network marketing.
If you’ve heard of Mary Kay, Avon or Tupperware, you’ve heard of network marketing. These household names are all examples of this type of business, which can be a great fit for those with an entrepreneurial mindset. But what is network marketing exactly, and how does it work? It’s time to learn how you can get all the benefits of being a business owner without all the headaches and level of risk.
WHAT IS NETWORK MARKETING?
Network marketing in business is a model that’s dependent on person-to-person sales of a product or service. It involves developing a team of people who work together to deliver the product’s message to a wide range of potential customers. The leaders of these teams are compensated for the products they sell as well as the products their team members sell.
It’s also known as multilevel marketing, referral marketing and consumer direct marketing. No matter what you call it, these are businesses where the best entrepreneurs can succeed – and even find their true gift.
HOW DOES NETWORK MARKETING WORK?
You’ll start your network marketing business by signing up with a reputable company – some of today’s most popular are Scentsy, Younique Cosmetics and Young Living Essential Oils. You’ll typically receive a “starter kit” with promotional materials, supplies and other items you’ll need to get started. At first you’ll work underneath a sponsor who can show you the ropes, provide education and give you tips about the industry. Once you know everything there is to know about your product, you’re ready to start selling.
Most network marketing in business takes place face-to-face. All you need to do is talk to people! Let your passion shine through and use your communication skills and get people interested in your product. Here’s where the “network” part comes in: When you sign someone up, they become part of your team. You earn commission on their sales and on sales of any people that they sign up – and so on. The more passionate people you can find, the better.
STEP 1. FIND YOUR PASSION
According to Tony, network marketing is about “picking the right company and realizing you’re a value creator. Whatever you enjoy the most, you’ll do the most.”
STEP 2: CHOOSE THE RIGHT COMPANY
Passion is the most essential ingredient to successful network marketing – and choosing the right company that matches your passion is equally vital. You’ll need to research carefully to locate a business whose message, story and products or services capture your image and make you want to join their ranks. The network marketing business you choose must also have the following traits:
At least five years in operation:
Fifty percent of businesses fail within the first year, and 80% fail within five years. Signing up with a business that hasn’t had its doors open for at least that long is an additional risk.
Steady cash flow:
Network marketing companies with nothing to hide disclose their financial statements. Take the time to read the statements and ensure the business is well-capitalized.