Every day daring entrepreneurs are climbing their way to success. They do this by building stay-at-home businesses and other money-making opportunities.
The need to uncover new ways to earn more income is a must. Through that need, the growth of multi-level marketing businesses and network marketing companies has skyrocketed.
Network marketing has grown over 60% in the US since 2009, and it’s not showing any signs of slowing down. If you’re curious to know what network marketing is and how network marketing companies make money, you’ve come to the right place.
The network marketing industry is a world worth taking a deep dive into. Here’s what you need to know about network marketing companies.
What Is Networking Marketing?
Network marketing is one of the many stay-at-home businesses requiring a person to build a network of individuals, business partners, or other salespeople to help lead generation and sales.
The process for network marketing is simple. You locate new customers and clients and get them interested in a product or idea. Once they have been recruited, you add them to your wheelhouse of resources to go and do the same thing you did.
Usually, this is done with the help of training, motivating, and managing your recruits, helping them feel empowered to do the work. Some of the most notable network marketing companies are Mary Kay, Avon, and Herbalife, to name a few.
There are a few different forms a network marketing business can take. You can create a single-tier program where you only sell products. Or you can have a multi-tier business model where you sell products and recruit additional people to do it for you.
The network marketing industry is vast. Before you decide to be a part of any network marketing company, a good rule of thumb is to make sure you do your research first. Since there can be a lot of negative views around network marketing.
Is Networking Marketing and Multi-Level Marketing the Same?
Networking, multi-level, and direct marketing are all considered the same thing. While the name may change depending on who is speaking about this business model, the concept of representatives selling products directly to consumers stays the same.
Why Is Networking Marketing Growing Rapidly?
There are a few reasons why network marketing is growing so rapidly. For starters, the success of those who join network marketing companies is something many people talk about.
Unlike other companies, the network marketing industry has a business model geared for success that other industries have tried to duplicate.
The growth of network marketing can grow as rapidly as it has because there isn’t a high level of capital needed to start a network marketing company. All that is required is a good product and highly motivated people with great energy and strong sales skills to get the job done.
At the base level, network marketing is done by word of mouth, and with each individual having a pool of people to connect with, the possibilities are endless.
Another reason for the rapid growth in network marketing is that many people want to create stay-at-home businesses due to the ever-changing nature of life demands.
The Four Stages of Growth for Network Marketing Companies
There are four stages of growth that a network marketing company can experience. The first stage is a start-up when the company is in its infancy.
You will start with training and seminars to get you acclimated to the business. Your dedicated sponsor will provide product training and give you best practices about how to recruit your representatives.
The second stage is sponsorship. This is where you mentor newer representatives and take them through the same process you initially went through.
Sponsorship is considered the development phase because you begin to expand your reach into new networks. You will create your training and motivational workshops to move to the next stage, the spurts phase.
During the spurts phase, your network marketing company will experience rapid growth, with commission checks that reflect this. This is when you want to focus on maintaining your momentum while continuing to motivate prime recruits.
The last growth phase for network marketing companies is the coast phase. This is where your company takes on a life of its own, as there won’t need to be much intervention from you to be successful continually.
The Value of Networking Marketing
The actual value of network marketing is in forming relationships. Once you get to know your representatives and customers emotionally, you’ve won half the battle. Showing salespeople the money they can make while offering customers a great product creates value on both sides of the spectrum.
How Many Network Marketing Companies Are There?
There are thousands of network marketing companies across the world. With 6.2 million Americans actively participating in some form of network marketing, it continues to speak to its popularity.
With the help of social media, there are new networking marketing companies popping up all the time. This is one industry that appears to keep growing.
As of 2018, the MLM industry grossed $35.4 billion. With the emergence of social media and how it has become more ingrained in our daily lives, this number doesn’t show any signs of slowing down.
How to Get Started in Network Marketing?
There are a few ways that you can get started in network marketing. The fastest, easiest way is to join a reputable company that already exists. The benefit is that they will already have proven success with products and training that can get you on a fast track to earning money immediately.
The next option would be to start your own network marketing company. You can start by finding a niche that interests you or something that you are passionate about and learn all you can about it. After that, you will want to find a supplier who can provide your products wholesale.
Once that is complete, you want to set your price and then develop an organizational structure that can handle pay tiers, commissions, and the inner workings of your company. The last step is to market your company and recruit salespeople.
Network Marketing Companies Are the Future
Network marketing companies are here to stay. They have solidified their place as a lucrative stay-at-home business, helping many people become financially free.
If you want to learn more about reputable networking marketing opportunities, reach out to our team as they are dedicated to helping you start your successful entrepreneurial journey today.