What is network marketing?
In any sales organisation products will be moved from manufacturer to the customer. Normally the manufacturer employs sales reps who sell to the stores. The stores employ buyers to deal with the sales reps and floor managers to manage the sales staff.
Network marketing is about moving the products straight from the manufacturer’s warehouse to the customer. Every consultant or distributor of a network marketing or direct sales company is working for themselves. They’re not employed by the companies; they are self employed. They buy at a discounted rate and sell to the customers at the full price. They sell direct to customers and can just keep doing that if they want to. Or they can recruit others to do just what they’re doing. Those they recruit are known as their downlines (If you recruit someone you are their upline). They receive commission on their downlines’ sales.
Some companies have one level of downlines, some have more complex structures. These are NOT pyramid schemes, though they are often called that by those who nothing about network marketing. We hope this site will serve to educate those who know nothing but who are open to learning. Pyramid schemes are illegal. Their only purpose is to recruit others and persuade them to part with their money, There is no product and no proper business involved.
Not all products are physical products. Telecom Plus (The Utility Warehouse) sells gas, electricity, phone and internet services. You are not required to store any of those in your garage! Send Out Cards sends real cards but online. The “stock” is points in the system. Several companies whose product is online business tools – eg Traffic Oasis and Traffic Wave are multi-level network marketing companies. The network marketing world has moved on to embrace the internet.
Direct Selling is a respectable profession
Direct Selling is a respectable profession and one that is growing at an exponential rate as people want or need to work from home and have control of their working lives. If it were not so I would not be involved in it! I’ve been in network marketing for less than five years but I have seen the potential. I’ve had great success and what seems like more than my share of failures. I’ve researched a lot of companies and a lot of training materials for BusinessVibe. I’ve learned a lot and I know there is still a lot to learn. That is what this site is about. Everyone from raw beginners to market leaders has something to learn and some knowledge to impart.
On this site we tend to use the terms direct sales, direct selling and network marketing almost interchangeably. You’ll read in some books that direct sales is selling by delivering catalogue door to door whereas network marketing is more selling to people you know or via party plan. Party plan? Many of you will have grown up knowing about Tupperware parties. The party plan concept is alive and well and making a fortune for some!
What is MLM? This stand for Multi-Level Marketing to reflect the fact that several layers of people will earn from one product sale. We don’t use that so much on here because BusinessVibe covers direct selling activities where there are no levels of downlines but you will see it used in some of the articles.
Network Marketing is not about bugging your friends until you’re a member of the NFL (No friends left ..) I’m a “renegade” network marketer. See the banner on the bottom of every page. In my team we teach proper sales and marketing techniques.