Network Marketing, commonly known as Multilevel Marketing (MLM) or Direct Selling, can be exciting if done the right way. There are many benefits and advantages associated with it too. What is needed to succeed with Direct Selling is honesty, hard work, and smart work! With Network Marketing, you are your own boss – deciding your own income, getting financial freedom, getting the opportunity to meet new people, working in flexible and convenient hours, and having the option to generate residual income. However, you need to collaborate with a reputed and credible MLM company to derive all these benefits. This article will discuss the things you must know before you step in to start your Network Marketing business.
Network Marketing Business – Flexible, Convenient and Cost-Effective
Why does someone get lured to the Network Marketing business? It is mainly to get rich overnight. Is it possible? Never! One indeed must put in their efforts smartly by using various online and offline marketing strategies. But not to scare you, the Network Marketing business is the most powerful business model involving people-to-people sales. If you have the aptitude for sales and like to meet and make friends with new people, Network Marketing is just the right business for you. Unlike any traditional business, the Direct Selling business requires little investment and minimal infrastructure.
Further, it allows you to work according to your convenience. You can decide how much you need to earn, be your own boss, and attain financial freedom. But it would help if you also took a few precautions before you step into the Network Marketing world.
Multilevel Marketing and Its Structure
Multilevel Marketing is also referred to as Referral Marketing which implies a distributed network being involved in building a business that offers flexibility. Most entrepreneurs take to Network Marketing because it is the easiest business to start. But before you get into the Network Marketing business, it is also important for you to understand its structural model. MLM companies usually revolve around creating tiers of salespeople which can be broadly categorized into three model types — Single-tier, Two-tier, and Multi-level.
The Single-tier Model does not require the company Sales Representatives to recruit other representatives but sell the company products or services.
The Two-tier Model involves the company Sales Representatives recruiting other salespeople – known as their downline. Here you get paid for selling as well as recruiting.
The Multi-level tier Model allows you to make money from your downline – this income is known as the residual income. Here you earn without doing anything but from a percentage of the commission on the sales made by your downline.
Things You Must Know Before Stepping into the MLM Business
Before starting any business, you need to have a concrete plan in place – it is the foundation to success. It would help if you did the proper groundwork in carrying out market research on various fronts. Multilevel Marketing is no different from any other business; you need to carry out feasibility studies before launching your Multilevel Marketing business.
Verifying Legality of the Business
Before you collaborate with a Direct Selling company, you should know about the existing history of the company; you should ensure that it has been operating at least for five years. You must know the business model that the company incorporates and meets your expectations regarding the commissions and incentives that the company doles out. Further, you may even see the company reviews online. Recently, the government of India has drafted rules that make it compulsory for Direct Selling companies to be registered and have also debarred companies that incorporate the illegal Pyramid scheme. It should be a big relief for those wanting to enter the Direct Selling Industry.
Ensuring Product Uniqueness and Prejudice to None
Before you finalize to partner with any company, look around you and ensure that the products or services that you are likely to sell are unique and reliable; ensure that there is very little or no competition for the business products you are likely to venture into. It will enable you to stand out in your area and be in more demand. Also, before starting your business, you should always create a list of known contacts – this becomes your warm list that you are likely to initiate your business with. When creating your contact list, include all in it – with or without purchasing power. It would help if you had prejudice towards none – include even freelance marketers and those who need the services or products. Network Marketing is a people-to-people sales; having your contact list makes it easier once you start your business – having prospects in the pipeline is like strengthening your foundation; it keeps you moving forward.
Naming Your Business Appropriately
Being creative makes you stand out in any business. You need to name your business appropriately and creatively to catch the fancy of people around you – offline or online. It would help if you considered naming your business so that it resonates with your company’s mission and vision. A business name can enable you to create a perception about your products or services. So, choose a unique and attractive name – it can help you grab the attention and capture the imagination of your target audience.
The Closing Thoughts
Network Marketing is all about the contacts you make. Assuming you are on the verge of taking a plunge into the Network Marketing business, you should know that there is a great future lying ahead for the Direct Selling Industry due to several initiatives like Make in India, Women Empowerment, Skill India, and Startup India. Further, with new rules and regulations drafted, it will safeguard the interests of those wanting to enter the Direct Selling Industry. The Network Marketing business has been prominently instrumental in providing jobs to millions during the dire employment crisis induced by the Covid-19 pandemic. The industry has been on the rise ever since, and it is here to stay for long. The growth potential is vast and the future is bright for direct selling in India. It is indeed the perfect time for you to step in. All the best.
