The process of marketing can be conducted in numerous forms. We can formulate marketing plans, which directly aim either at the final consumers or at various intermediary levels. In the present scenario, everybody looks for convenience and flexibility in their career. Effective network marketing comes up as a flexible business opportunity. This article proposes a network marketing guide with examples.
Let us begin by understanding, ‘what is network marketing?’. Network marketing is defined as the marketing of products by creating a chain of marketeers. Such marketeers are constantly involved in selling products. Your share the profits of the entire chain under you. The profits are earned in the form of the commission provided on sales. Following pointers will explain the concept behind how to develop an effective network marketing strategy with supporting examples.
1. Meaning of network marketing with image model
The answer to ‘what is network marketing’ is that it is the process of promoting the products to the intermediaries or distributors. It is also called pyramid selling or multilevel marketing.
Network marketing involves independent agents who are responsible for selling the products to the final consumers, for a specific amount of commission. Good communication and relationship skills are a must for effective network marketing. Therefore, you should go for network marketing only if you can form good relations with others.
2. Network marketing- How it works?
The key to effective network marketing lies in forming a wide customer base through a chain of intermediaries. For example, if you’re at the bottom of the sales pyramid and you complete a sale, then the entire pyramid will be benefited from that one sale. So, network marketing involves forming a literal network of salespeople, which facilitate an easy selling of product.
3. Choose the product appropriately for effective network marketing
Choosing the right product is a must for effective network marketing. Which is why, you should choose a product that you would buy as a customer. Before convincing the customers, convince yourself with the product functions and benefits. This will enable you to present your product to the customers in a convincing manner. The product must provide great utility to a wide consumer base. In simple words, it should be highly demanded by consumers. Only then it will be convenient enough for you to sell the product.
4. Be different as compared to other distributors for effective network marketing results
There are thousands of people who will opt for the same conventional approach for network marketing. Hence, this makes the process of network marketing, uninteresting. Therefore, you might not be able to achieve engagement from a lot of people.
Uniqueness is very significant for standing out in the crowd. Creative ways of communicating the products to the consumers must be prepared. This will lend you a competitive advantage over other network marketers. Moreover, uniqueness and creativity are important elements to conduct any sort of business activity.
Many people have started using digital marketing as a effective network marketing startegy. Visit our blog on ‘NEED FOR DIGITAL MARKETING IN TODAY’S BUSINESS WORLD‘ to understand the importance of digital marketing in the present corporate scenario.
5. Network Marketing examples: Amway, HUL, Tupperware
Amway is an American company, selling beauty, home care and healthcare products. It was founded in the year 1959. It is one of the top network marketing companies worldwide. Amway demonstrates a productive network marketing model. In order to be a salesperson for Amway, you just need to buy its product. Thereafter, you get the compensation depending upon the number of sales you get.
Tupperware is a company which deals in selling kitchen and home use products. It is another prominent name in the network marketing community. Tupperware has given itself the name of ‘relationship-based selling’. It rewards bonuses and compensation on team-based performance and on an individual level.
Hindustan Unilever Limited is an Indian company, which deals in selling consumer goods. It is one of the top network marketing companies in India. HUL demonstrates an ideal application of the process of ‘how to do network marketing’. It provides attractive compensation plans for intermediaries.
Recently, HUL reworked its network marketing strategy in favor of its sales representatives by removing the entry and renewal fee. It has formed a wide chain of intermediaries today, highlighting its successful network marketing strategy.
Visit The marketing category of The Uni Square Blog to know about renowned marketing strategies of globally recognized corporate organizations.
6. Technology and network marketing
Undertaking network marketing using technology can help us to widen our reach. Besides, studies have shown that network marketing using technology has proven to be more successful as compared to the conventional approach. For example, DUBLI
DUBLI is an online platform, which provides a cash back toolbar that can be added on an easy click. Anytime a customer visits a website affiliated with DUBLI, they have a chance of getting cash back. However, the normal membership with DUBLI guarantees a 4% cash back annually.
Different business organizations implement network marketing through online platforms, like Facebook, Linkedin, Instagram or other websites. Operating over the internet is adding to the network marketing success. Besides, the companies are able to expand their network of selling.
In this era of Whatsapp a majority of the target group is available on this platform. So, marketing strategists also use this platform for speedy marketing communication.
The above points offer an understanding of what is network marketing, along with an approach to ‘how to do network marketing’. You require a clear and dedicated mindset in order to be successful in network marketing. Hard work and dedication are the two secrets to achieve success in network marketing.