Networking is NOT Pyramiding! The mentality of people when someone says “networking” they termed it as “pyramiding”. Pyramiding is a non-sustainable business model that involves promising participants payment or services, primarily for enrolling other people into the scheme, rather than supplying any real investment or sale of products or services to the public, it is a scheme while the network marketing is a business strategy. And what is business strategy? It is of how you strategically takes the field or deals business. It is how you’ll understand the business flow and how you’ll making up into things….. The agility of the business flow, does it flowing or stranding? Or it takes a slow moving frictions. Network Marketing (legitimate, legal business model) The concept behind network marketing is a distribution model that allows a company to sell their products directly to the consumer. Choosing to use a word of mouth approach (networking) instead of advertising through traditional streams (eg media). Therefore instead of paying the mediafor advertising, network marketing companies are structured to reward distributors through commission in return for selling their products and finding new customers. Therefore the main focus of a network marketing company is product distribution. In fact, in a legitimate network marketing company,distributors are not required to recruit new distributors in order to earn a commission, they can earn money purely by selling the company’s product. Although distributors can choose to sell the company’s products to earn their commissions, not everybody wants to be a sales person and therefore choose to recruit more distributors into their organisation as ameans to build their referral base. Not only does this create a group of loyal customers, it also allows you to leverage the efforts of others to create a residual stream of income. “I would rather earn 1% of 100 people’s efforts than 100%of my own efforts” - John Paul Getty (American Billionaire) Therefore the recruiting element of a network marketing business is merely away of distributing more products and helping to build a leveraged income
Posted on: Tue, 11 Jun 2013 23:28:13 +0000
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