Network Marketing, alternately referred to as Multilevel Marketing or Referral Marketing or Direct Selling is an online network of company representatives who sell and hire. These company representatives, commonly known as Independent Representatives or Sales Representatives, form a chain of advertising agents who showcase and market company products or services. This write-up familiarizes you with the three types of Network Marketing programs that companies incorporate as part of their marketing strategy. THere are some things to keep in mind when choosing your company.
A Wider Network of People Gives MLM Companies More Exposure
The bigger the chain of people, the bigger is the gain for the company. It enables the company to avoid spending huge on advertisement costs and bypasses intermediaries and physical retail stores. The Sales Representatives, who are not on the payroll on the Direct Selling companies, are compensated handsomely by way of commissions and incentives on the sales they make and the representatives they recruit under them – known as their downline. A wide network of salesforce enables the company to have a greater reach and visibility. For the Sales Representatives, a bigger and active downline enables them to gain more. It is a win-win situation for the Direct Selling company as well as the Independent Representative. As we move ahead, let us know the types of Network Marketing programs that companies incorporate. It can help you identify and finalize the right MLM Company before stepping into the Network Marketing arena! When choosing a company to join as a direct seller, it is important to find if it’s a good company like QNET!
Single-Tier MLM Program
The total scalability makes Network Marketing one of the most popular sources of making money using online methods. Usually, it begins as a part-time option for most people that gradually expands as a massive online business. In the Single-tier Model, Independent Representatives earn by selling the company products or services, and your earning are restricted just to that. Your only goal in the Single-Tier MLM program is to advertise, market, and sell the company offerings and receive a commission percentage of sales executed.
Double-Tier MLM Program
Most people who decide to join the Network Marketing business do not get excited about the Single-Tier MLM program as they crave more. The Double-Tier MLM program is an extension of the Single-Tier MLM program. Independent Representatives earn by selling company products or services in the Two-tier program and by recruiting more salespeople like themselves under them – known as their downline. It enables the company to increase its salesforce along with its reach and visibility. The Independent Representatives, earning an attractive commission for selling the company offerings and are also rewarded with incentives for recruiting salespeople. True to its name, the Two-Tier MLM program is indeed a double whammy for the Independent Representatives.
Multilevel-Tier MLM Program
The Multilevel-Tier MLM program, an extension of the Two-tier Model, is the best of all the three MLM programs. In the Multilevel-Tier MLM program, you earn beyond selling and recruiting! In this program, you also earn by doing nothing – you earn a percentage of the commission on the sales made by your downline. This income is known as residual income! True to its name, the Multilevel-Tier MLM program allows you multiple options to earn. Most well-known and reputed MLM companies offer this type of MLM program. However, you need to provide your downline with the proper guidance and training to keep them motivated and active in this MLM program in this type of MLM program. It will go a long way in driving more traffic, i.e., it will help you grow your network of people that will generate continuous residual earnings for you!!
Choose Your Network Marketing Company Wisely
Many companies incorporate the illegal Pyramid program and suddenly come on the scene out of nowhere in the guise of an MLM company and vanish in no time. You should beware of partnering such companies who are out to dupe innocent people. It is always advisable for you to make an informed decision and choose your company wisely. Ensure that the company is legal, has been in existence for at least five years, and consistently rewarded its Sales Representatives. Now that you know the three types of MLM programs that companies incorporate as part of their business strategy, you are further well-informed and well-armed to take an appropriate decision.
Choosing the company that you want to do business with is one of the most crucial steps. It needs to be done with care and confidence.
