Definitions: Network Marketing
“What is network marketing?” is a question that is seldom asked these days because everyone thinks they know the answer.
It is very popular with folks who need to generate income on the side. It is helpful that it can be carried out part time according to the schedule an individual wants to set.
Its very popularity sometimes makes it hard to answer the question of “What is network marketing?”
Accurate definitions are not what make it into literary and big screen references. Its negative or caricature representations are often what folks are exposed to.
This is unfortunate because it makes it difficult sometimes for the new entrepreneur to define it for his prospects.
Often, they are too busy thinking about what it is they think they know, rather than hearing the new entrepreneur explain the significant benefits of both his or her products and the opportunity that makes them available.
To sum it up, you enter into an independent contractor relationship with a company to represent their goods and services. For this, you will receive a commission on what you sell personally. You are creating customers for the company. You can also create other representatives for the company for which you will receive an override of their sales as well.
What Is Network Marketing?
Pot-a-to or Po-tah-to
Some folks are skittish about the act of selling. The idea of being a salesman makes them sweat blood, metaphorically speaking.
Ironically, these same people can go on and on, waxing rapturous in their recommendations that you should eat at Ruth’s Chris Steakhouse (worth the price, by the way) or just about talking at the top of their lungs about how you simply must see the latest Star Wars.
…not realizing they are engaging in full blown, Interstate highway speeds selling when they do it.
They are also doing it for free.
You are using this very same process, only you are getting paid to do it.
For this very reason, network marketing is also referred to as ‘referral marketing.’
Referral marketing has a nice, warm, pleasant, fuzzy feeling to it that calms the panicky folks who are emotionally allergic to the idea of selling. Basically, you are saying something like this to folks you know, “I use this. I benefited from it. I believe in it. I think you would like it, too. Would you like to try it?”
You can also use the idea that your product or service solves a problem they have.
Obviously, those are not the exact words, but the ideas are correct. You are not selling a used car you are trying to move before it won’t run. You are telling a friend they might like to try something that you benefited from. That in any case, is for direct contact amongst folks you know.
Solving problems for folks usually leads to a life long customer, too.
Online Referral Marketing
Online is a different world. Folks don’t know you and have no reason to trust you or engage in your business. To them, “What is network marketing?” is a question that has been answered.
They need a reason to trust you; they need a reason to think you can help them solve their problems.
This is where attraction marketing comes into play.
Attraction Marketing is a very simple concept although its implementation is sometimes not so simple. Mainly, it requires consistent effort to win the Search Engine Optimization and social media proof cycles.
You provide content that has real value to your readers, listeners or viewers.
By real value, I mean you are teaching them things that will help them in their current business.
Solving problems for folks is what you do. Solving problems for folks gives them a reason to trust you. When they trust you, they will buy from you.
That trust is why networking or referral marketing is so successful. Folks buy from folks they know and trust.
Capitalizing1 on personal relationships to build a business is what you do when you do it in person.
Online, you are using attraction marketing to create those relationships. You do this by providing value in the form of solving problems for them. As you do this and as you communicate with them over time either through chat, emails, newsletters or blogs they begin to actively seek you out.
This leads to sales. Sales lead to freedom.
1 This is not to suggest you are being mercenary in your efforts. I am assuming you are choosing to represent quality goods and services that give benefits, value and solve problems for your customers.
If you are representing things in which you do not believe, but are only selling them because of their profit potential, you are going to find yourself in a hard row to hoe.
You cannot do better than taking the sincere position that you want to improve your customers situations and then finding products to represent in which you have absolute confidence and use yourself.