According to statistics, only 10-15% of people who decided to do network marketing, achieve some result. Their earnings can reach several thousand and even hundreds of thousands of dollars. The rest earn very little or do not earn at all. There are people who invest their money in this business, but in the end they do not succeed and remain with debts. Such people and leave this business, because of them and there is a negative opinion about network marketing.
Probably, many were interested in the question, is it possible to earn well in network marketing? There is no single answer to this question. There are people who managed to succeed, and there are those who did not achieve any result or this result was insignificant. And there is an explanation for this.
The very principles of network marketing are not new and not special. Its elements are inherent in any successful economic mechanism. There is a producer who produces the goods, and there is a general dealer - the firm that sells this product. In this case, the dealer has the greatest profit due to a large turnover. He delivers the products to the warehouse, and from there it gets into the retail trade.
Each link in this chain receives its share of profits. The higher you are in this structure, the greater your profit. The seller gets the least. The owner of the outlet gets more, the owner of the small wholesale warehouse - even more, etc. This is similar to the structure of network marketing, but there is one difference - the seller's chances of becoming the shop owner are minimal. This will require huge investments. Therefore, the material prospects of people working for hire are very low. The only thing that can be expected from such work is an increase in wages for the conscientious performance of their work.
Naturally, network marketing has a number of differences from traditional business. The main of them - the links of the network marketing structure are not companies, but people who act as distributors of the company. They provide the movement of services and goods from the producer to the end user. The absence of intermediaries helps to get the maximum profit. Climbing the stairs depends only on your qualities and does not require any investment. If you do not have the starting capital and the right connections, then network marketing is one of the few ways to achieve financial success.
It is not uncommon to hear that network marketing is the same "pyramid". But this is far from the case. Companies engaged in network marketing, in contrast to the "pyramids", sell real goods, having a certain demand and real price. "Pyramids" in their pure form do not have any goods at all. But there are so-called "hidden pyramids" that sell goods at an unreasonably high price, explaining its exclusivity of the goods. As a rule, there are no quality certificates for such a product. One of the mandatory conditions for cooperation with such companies is the purchase of a certain amount of goods offered by the company for a certain amount. Further signs of the usual pyramid are the search for those who wish to purchase the same set of products.
Advantages of network marketing
- You can achieve success, which will bring a good stable income.
- Free work schedule - you work when you want and how much you want, which is impossible in other types of business.
- Special education and large financial investments are not required.
- You can support, help and motivate the people you have attracted, which as a result will increase your profits.
- You can use any psychological and marketing knowledge that will help you attract more people and increase sales.
- Having engaged in network marketing, you can forget about daily turmoil and get rid of dissatisfaction with life.
Disadvantages of network marketing
- As in any other kind of business, there is a certain share of risk in network marketing.
- Wrong approach of newcomers to this business leads to the fact that they fail in the first months of work.
- There is a risk of spoiling relations with relatives and friends, if you attracted them to this business, and for some reason they could not achieve the desired result.
- To choose really perspective direction of network marketing, you will have to work hard.
To distinguish a serious network marketing company from the pyramid, pay attention to whether you need to invest significant funds to start cooperation with such a company. Often, in serious companies, your main cost will be the purchase of educational literature. Today, network marketing companies that strive primarily to give knowledge, and not to lure more money from the masses - this is a good chance to make a career.