Nowadays, one of the most in jobs in the entire world is networking or the so-called network marketing. Nevertheless, how is network marketing really works?
Multilevel marketing or MLM, also called network marketing or networking, is a process in which a product has been marketed through multilevel of people. It is a distribution system or a form of marketing that moves goods and services from the manufacturer to the consumer through a network of independent contractors.
MLM is a way to organize and pay for resellers involved in direct sales. It follows a compensation plan for direct sales in which resellers or distributors can receive earnings in several ways:
- Distributors receive compensation for their personal resale of products and services to consumers.
- Distributors are paid for the purchases or resale of people recruited or sponsored.
- Individuals may also be paid from the resale of the group or network that recruited or sponsored them previously.
In MLM setting, distributors recruit new customers in their network and then train them to attract more new customers, and so on, creating multilevel. Each marketing level or sales representative is given a name or rank by the organization or the company such as a distributor, sales representative, star agent, independent owner, and others.
Once you become a distributor, you need to build your downlines. Here are some tips in building strong downlines that are usually given to distributors:
- First, become effective at selling a product or service to a consumer.
- Recruit one person and train him to get more customers. This person will now be called your downline.
- Once your downline can already get his own customers, train him to recruit another person.
- Equip your sales representative or downline with the necessary skills and knowledge on how to get more customers or recruit more people.
- Recruit another person and repeat the steps you’ve done with your first downline. Keep doing this until you’ve reached the income that you desire.
Looking to the networking system, we could say that it is a good way of earning, however, nowadays, people use networking scheme to scam other people.
In our place, many are not believing in this kind of business since most are being recruited to join and at the end, they get nothing because only their recruiters benefited.