Various definitions of network marketing can be found.
Network marketing is commonly known as multi-level marketing or MLM. It is part of the direct selling industry and is run as a business-distribution model that allows a parent company to market its products directly to consumers through a large network of distributors and consumers, thereby bypassing the middleman.
Network marketing is also known as a relationship business. In order for a person to succeed in this business model, you have to first of all help the people in your organization succeed. Then only will you be able to succeed. It is basically a 'people helping people' business.
Mention network marketing or MLM and many people will think of pyramid schemes and scams. A company is considered as a pyramid if there are no products or services offered or the distributors make money just by recruiting more distributors. This is illegal.
Most network marketing companies allow you to start a home business for just a very low capital. This allows more people to get involved. What is great about this type of business model is that for those with good compensation plans, it allows you to build your organization successfully and leverage upon the time and effort of others, while generating residual income.
As network marketing is all about sales and distribution, it is important to continue prospect and generate leads for your home business. Prospecting is the lifeblood of the MLM business. Rather than just approaching any here, Dick or Harry, you must be able to identify your target market and market to your target market.
It is imperative that you communicate with your target market and build a great relationship with your leads before you start selling your products, services or mlm business opportunity to them. Since mlm is also defined as a business of moving products, targeting your target market will help you to move more products. Remember to always listen to what they have to say and pitch your offer according to their needs and desires.
At the same time, as your success is determined by how successfully you grow your organization, training those in your organization to do what you are doing in order to succeed is of great importance. If you miss out on this aspect, or do not do it well, you will not be able to leverage on your organization. It will thus be difficult for you to build your residual income.
In network marketing, you are in the business for yourself, but not by yourself. You will have a team to help you out. So, you do not have to worry that you are working individually. Although you are building your own business, you are not alone and if done correctly, you will be able to make good money by leveraging on your organization and earning a solid residual income.