An Introduction toNetwork Marketing & Healthy Coffee
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What is Network Marketing?
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The Internet and Network Marketing
Why Network Marketing?
According to statistics, a new home-based business starts up every 10 secondssomewhere in the world, and many of these businesses are based on the concept of "Network Marketing".
Network Marketing is a 60 billion dollar a year industry and provides a ready-made business structure including product support and services.
Today there are more than 10 million independent business owners in North Americaalone and many of those in the Network Marketing industry are enjoying more qualitytime with family, a better lifestyle, advantageous tax benefits and unlimited financial potential.
What is Network Marketing?
Network Marketing is one of four major channels a manufacturer can use tomove products from factory to consumer.
The other three are retail sales, directsales, and catalogue or mail-order sales.
The Internet
opens a new channel for getting goods to consumers, which can have the characteristics of all four of thechannels we've mentioned. We'll cover the role of the Internet a little later, but firstlet's take a brief look at the classical methods to gain some perspective.
Retail
: We're all familiar with grocery stores, drug stores, and department stores -even service stations. The product moves through a wholesale/jobber distributionsystem to the retail store. The merchant displays the merchandise and we go to thestore to purchase it. That's retailing. The customer goes to the merchant.
Direct Sales
: The merchant goes to the customer. That's direct sales. Door-to-door selling, house parties and other methods are used in direct sales. Insurance, cookware,vacuum cleaners, and cosmetics are some of the products that are sold by this method.
Network Marketing should not be confused with direct sales,
although some directsales companies have converted to a Network marketing structure.
Catalogue Sales
: We're all familiar with this channel, especially around the holidayswhen we are tempted with an assortment of foods, clothes and specialty items presented with colourful pictures.
Network Marketing
: This channel evolved out of direct selling, but is distinctlydifferent. Consider this scenario:
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Pretend you are a manufacturer who has a product that does not lend itself tothe standard retail channels, so you hire sales representatives to sell your product directly to consumers.
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Sales are good, but growth of your customer base is limited by the number of sales people. How do you find more good sales people?
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Your current sales people have friends, family, or satisfied customers who maywant an additional income. You ask your sales people to recommend some.
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You don't get many recommendations because your sales people are busyselling and can't be bothered. You decide to offer a bonus for eachrecommendation.
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Your sales people are excited by your bonus offer, so you get lots of recommendations and new employees. Some are effective and some are not!
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Good Read - I love Multi-Level Marketing and the infinite potential it offers.