One of the main questions people in the industry get asked by others who are ignorant of the industry is, “why are use network marketing as a distribution model when you can put your products in the shop or market your services some other way?”
The people that asked this question are normally people who have a very low understanding of the industry or the power of the distribution model.
When companies advertise their products or services it is because they are trying to gain a customer.
The best form of business is referral business, especially from a trusted source.
This is why companies give incentives for referrals e.g £50 off your electricity bill for referring a customer.
Companies have been doing this for years and will continue to do it because they want the customers.
This principle is what answers the question, “why use network marketing as a distribution model?”
Whether you are looking at it from a customer point of view or a business point of view it is all about referrals based on a trusted source.
This is why the old school model of Network Marketing was, make a list of your family and friends and tell them what you are doing.
Now with the advancement of technology the new school model of Network Marketing is, build a list of people who you are adding value to, who know, like and trust you and eventually they will become your customers and even your business partners.
You see, it is the same strategy as every company uses, the best form of business is referral business!
So why use Network Marketing?
Well rather than a company spending on very expensive advertising campaigns, a Network Marketing company would rather take that money and pay the various levels of distributors who are actively going out promoting the product or service based on their existing or developing relationships.
This way you create a much more loyal customer base and a motivated sales force that are not working for the company but working for themselves.
All the company then has to do is provide the environment and the incentives for the self-employed independent distributors to develop whatever level of income they want to make, based on their own personal motivation.
What better way to build a business that will be self-sustaining!
This way not only does the corporate team have leverage but every single independent distributor that is promoting the product or service has their own level of leverage as well.
This is why Network Marketing is the perfect vehicle for the everyday person who does not have the desire to build a traditional brick and mortar type business, to gain financial freedom for themselves and their family.
So for the people who call Network Marketing a pyramid scheme, I would suggest they do a little bit more due diligence.
A very good place to get your questions answered about the Network Marketing industry is this page which I'm going to share with you now.
If you CLICK HERE you will get access to 2 presentations that have been used in court rooms to demonstrate their effectiveness and legitimacy of the Network Marketing industry.
So, why use Network Marketing as a distribution strategy for a product or service? BECAUSE IT MAKES SENSE!
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Success Coach & Mentor
PS, If you want to learn more about the New School way of building a Network Marketing business, CLICK HERE and get your eyes opened to the true potential of what you can achieve in YOUR COMPANY!