NETWORKING MARKETING

·               NETWORK MARKETING
MARKETING

• INTRODUCTION

1. ALSO CALLED MULTI –LEVEL MARKETING (MLM)/PYRAMID SELLING/REFERRAL MARKETING. CARL REHNBORG IS THE INVENTOR OF NETWORKING MARKETING
2. IS A BUSINESS MODEL WHICH INVOLVES A PYRAMID STRUCTURED NETWORK OF PEOPLE WHO SELL A COMPANY’S PRODUCTS.
3. THE PARTICIPANTS IN THIS NETWORK ARE USUALLY REMUNERATED ON A COMMISSION BASIS
4. PEOPLE IN THE NETWORK GET COMMISSION AS THEY PERFORM A SPECIFIC TASK:-
5. MAKE A SALE OF A PRODUCT
6. THEIR RECRUITS MAKE A SALE OF THE PRODUCT

• PROCESS

1. THE MODEL INVOLVES A PYRAMID STRUCTURE OF NON SALARIED PARTICIPANTS WHO GET PAID WHENEVER THEY OR A PERSON BELOW THEM IN THE PYRAMID MAKES A SALE
2. CONSUMERS ARE THE PARTICIPANTS, THEIR FAMILY AND FRIENDS ARE THEIR CUSTOMERS AND THIS CYCLE GOES ON
3. FEATURES A LOW UPFRONT INVESTMENT –USUALLY A FEW HUNDRED DOLLARS OR RUPEES FOR THE PURCHASE OF PARTICULAR KI AND THE OPPORTUNITY TO SELL A PRODUCT LINE DIRECTLY TO FRIEND,FAMILY AND OTHER PERSONAL CONTACT.
4. MOST NETWORK MARKETING PROGRAM ALSO ASK PARTICIPANTS TO RECRUIT OTHER SALES REPRESENTATIVE. THEY CONSTITUTE A REP’S DOWN LINE AND THEIR SALES GENERATE INCOME FOR THOSE ABOVE THEM IN PROGRAM

• FEATURES

1. INDEPENDENT BUSINESS OWNER: AS THEY WORK AS THEY ARE PROMOTING THEIR OWN BUSINESS
2. PARTICIPANTS TO USE SELLING PHILOSOPHY OF MARKETING: MAIN FOCUS ON RECRUITING AND SELLING
3. SYSTEM OF HIERARCHY: SUPPOSE A PERSON HAS A PERSON B UNDER HIM. A WILL GET THE COMMISSION ON HIS SALE AND ALSO A PART OF COMMISSION WHEN B MAKES SALE
4. LESS OR NO ADVERTISING
5. NO FIXED SALARIES
6. BENEFITS TO THE PARTICIPANTS: GET DISCOUNT AND OTHER ATTRACTIVE OFFERS

• MULTI LEVEL MARKETING STRATEGIES

1. LEAD GENERATION: TO LOCATE NEW PROSPECTS
2. RECRUITING: ADDING CUSTOMERS AND OR BUSINESS PARTNERS TO YOUR NET WORK
3. BUILDING AND MANAGEMENT: METHODS USED TO TRAIN,MOTIVATE AND MANAGE RECRUITS

• MANY TYPES OF NET WORKING MARKETING

1. SINGLE TIER NETWORK MARKETING
2. TWO TIER NETWORK MARKETING
3. MULTILEVEL NETWORK MARKETING

• SINGLE  TIER NET WORKING MARKETING

1. SIGNING UP AN AFFILIATE PRODUCT TO SELL THEIR PRODUCT OR SERVICE
2. DO NOT NEED TO RECRUIT OTHER DISTRIBUTOR AND ARE ONLY PAID IF ONE MAKE A DIRECT SALE
3. AVON IS A COMPANY THAT USES SINGLE TIER NETWORK MARKETING
4. IN SOME ONLINE AFFILIATE PROGRAMS,ONE IS ONLY PAID FOR TRAFFIC,ONE HAVE REFERRED TO THE AFFILIATE WEBSITE. PAY PER CLICK AND PAY PER LEAD(PPL) AFFILIATE PROGRAMS ARE THE EXAMPLE

• TWO TIER NETWORK MARKETING

1. APPLIES TO NET WORK MARKETING THAT PAYS ONE FOR DIRECT SALES
2. TRAFFIC REFERS TO WEBSITE
3. REFERRED TRAFFIC MADE BY AFFILIATE OR DISTRIBUTOR ON RECRUIT WORK.
4. KEN ENYOY ‘S SITE SELL

• MULTILEVEL MARKETING

1. IS A DISTRIBUTION BASED MARKETING NETWORK THAT IS TWO OR MORE TIERS DEEP.
2. SOME MULTILEVEL PROGRAMMS ALLOWS ONE TO MAKE MONEY FIVE OR MORE TIERS DEEP

• EXAMPLE AMWAY
• TWO OTHER TYPE OF NET WORK MARKETING STRATEGIES ARE MARKETING DRIVEN NETWORKS AND NAME DRIVEN NETWORK MARKETING
• BINARY PLAN

1. IS THE MOST POWERFUL MULTILEVEL MARKETING PLAN IN THE INDUSTRY KNOWN AS 2XN MATRIX
2. N REPRESENTS INFINITY
3. VERY EASY TO USE AND HIGHLY PROFITABLE
4. MAJOR DISTRIBUTOR ARE CALLED BUSINESS CENTERS

• EXAMPLE
• AMWAY HAS BEEN IN BUSINESS FOR AROUND 57 YEARS
• OTHER COMPANIES THAT USE
• TUPPER WARE
• NUSKIN,JUICE PLUS ETC
• EVALUATION
• ADVANTAGE

1. HIGHLY PROFITABLE IF WORKED PROPERLY
2. FREEDOM TO WORK
3. NO BOSS
4. FLEXI TIME
5. POTENTIAL FOR EXPONENTIAL GROWTH
6. MASSIVE EARNING POTENTIAL FOR THOSE WHO REACH THE HIGHEST LEVEL
7. PERSONAL GROWTH AND DEVELOPMENT

• DISADVANTAGE

1. NOT EASY TO MAKE SALE
2. REQUIREMENT OF HIGHLY MOTIVATED
3. LOTS OF EXPERTISE IN SALES IS REQUIRED
4. TOO PUSHY AND DESTROY THE RELATIONSHIP
5. IN CASE OF SATURATION THE NEW CONSULTANT HAS TO MAKE A LOT OF STRUGGLE