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BENEFITS OF NETWORK MARKETING IN BUSINESS
BENEFITS OF NETWORK MARKETING IN BUSINESS
Introduction :- Network marketing is basically a medium of marketing that manufacturers use to expand their sales. Manufacturers use them when they have to deal with several distributors to push out their products. Sometimes, these distributors might have sub-distributors. As a result, this leads to a “network” of distributors that operate at various levels of the distribution chain. Manufacturers use this vast network of distributors to market their products to customers at various levels. This enables them to reach out to even more customers indirectly.
These distributors and dealers, therefore, act as independent representatives of the company. As a result, this way the company can market their goods widely without spending more money on traditional methods of marketing, like advertising.
How Network Marketing Works ?
Network marketing is known by a variety of names, including multilevel marketing (MLM), cellular marketing, affiliate marketing, consumer-direct marketing, referral marketing, or home-based business franchising.
Companies that follow the network marketing model often create tiers of salespeople—that is, salespeople are encouraged to recruit their own networks of salespeople. The creators of a new tier earn commission on their own sales and on sales made by the people in the tier they created. In time, a new tier can sprout yet another tier, which contributes more commission to the person in the top tier as well as the middle tier. Thus, the earnings of salespeople depend on recruitment as well as product sales. Those who got in early and are in a top tier make the most.
Benefits Of Network Marketing In Business :-
There has been a renewed excitement about business networking, and it makes you feel that it is an entirely novel concept. That, however, isn’t true. The concept is fairly old and has been around since the time people first began communicating. So, why the buzz, you may ask! The internet age, that we are all a part of, has brought forth a portfolio of some really important tools. Business networking has often been thought of in terms of getting new business, but it does have a strong role to play in job search, career change, hiring, selling (of course), establishing and improving business practices, and for a number of other professional goals.
New opportunities :- The single most obvious advantage of business networking done right, is that you get to meet and create relationships with loads of new people, potential clients or even referrals. These new contacts can bring new partnership opportunities, joint ventures, or even new arenas for expansion of your business.
Greater visibility :- “Out of sight, out of mind.” An old adage that proves true, in any context. Business networking involves meeting and communicating with potential clients and business partners with some frequency. Active networking solidifies your personal profile and keeps your business fresh in the minds of the right people.
Better problem resolutions :- You cannot exist as an island. At different junctures in your business journey, it is only natural that you may encounter certain business problems that can be resolved with the help of certain other businesses or individuals. Business networking provides the right contacts to help you solve the problem efficiently.
Staying updated :- The business climate is dynamic, volatile even! This means you can only adapt, if you are always aware of the latest developments and trends of the industry. Attending seminars or other networking events, keeps you aware of these ever-changing trends, so that you not only create stronger relationships, but also are on your toes about what your customers are expecting from a business like yours.
Access to greater knowledge base :- As your network expands, so does your access to knowledge and experience. This means when you are taking business decisions that are beyond your comfort zone, you get the benefit of your entire network, their knowledge, and their experience.
It may not seem like much, but can end up saving you from bad investments!
Business networking can turn out to be truly effective or entirely useless, depending on how you actually execute it. Even the best sales pitches may get you nothing, if you make it on a non-descript email, and no matter how good you are, simply handing out a business card may not get you the results you have been dreaming about!
Conclusion :- Network marketing is a business model that depends on person-to-person sales by independent representatives, often working from home. A network marketing business may require you to build a network of business partners or salespeople to assist with lead generation and closing sales.
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