“Network marketing meaning is to do the marketing or business within your own network. Own network means your friends, your family members, neighbors, office colleges, your milkman means everyone you know.”
Let’s first understand a little bit about the network marketing business concept.
But before that, Do you know what people think about network marketing?
A very controversial topic whenever discussion going on it, typically in India. Indian people seem afraid of OR feel uncomfortable with this industry and try to run away from it. They think this industry will ruin their life. Their perception about this industry is due to their experience where they are trapped by some fake companies who took the money from them and ran away or disappeared. These fake companies present the Network marketing business in a very wrong way in people’s mind that they just hate this industry because as they don’t want to be deceived again that’s why they call it a “member making Scheme”, ”Fraud”, “Scam” and Blah Blah. People also call it a Pyramid Scheme, MLM.
Let me explain what is a Pyramid?
If you look around yourself and have ever paid attention to Govt. offices, Private Sector, Schools, Big IT companies and so on. People in higher positions earn much than their juniors, and juniors earn higher than their juniors, so if we draw a Picture it would like this.
Take any organization, you will find a similar structure. At the top there will be one Head/CEO of the organization who is taking the highest salary in his organization, below him, there will 2-3 people who earn less than Head/CEO, below these 4-5 people there will be 10-15 people and so on. Does It mean that every organization either govt. or private is a scam? Is part of any scheme?
As every industry has good and bad players, this industry also faced many challenges due to the bad players. Over time, genuine companies will remain in the market, and fake companies will go away. People should be aware of this industry because there is a lot of potential in the coming years.
Network Marketing Meaning
There are lots of ways to describe but, in simple terms, Network Marketing is – “Marketing in your own Network”.
The different business model was running for the last hundreds of years, then why this concept of Network Marketing came into the picture.
Initially, when civilization started, people followed the Barter Business Model, exchanging goods with each other. People travel across locations to sell their things in exchange for things they need to survive.
This model has its own limitation, and then the coin/currency concept came into the picture. People buy goods and pay for them. After that people started other states or countries for money and many other models came.
Slowly-Slowly franchise system came into the picture where one type of thing is available all over the world means to say that business models keep on changing with time and going better than previous for the ease of people. Humans always try to make the business model better.
Then Network marketing business concept came, where people do marketing in their network. People give a free opportunity to other people for business along with the goods/products. It is a pure business model where one can start and earn in huge with the help of their seniors. If we compare the startup cost of network marketing business with any other business model then it will be negligible and there are certainly more parameters that will shock you like:
- Startup cost: As I discussed this thing above, the startup cost of Network Marketing is very less compared to other businesses.
- Time: In other startup businesses you will have to spend much more time, in some cases you have to spend full time, but in Network Marketing, you can start as part-time.
- Space and staff: In other Startup businesses, you need space on rent/ own to set up your office and need to hire staff which leads to extra cost every month. But on other hand, you don’t require all these things which save your time and money.
- Breakeven point: In other startup businesses, it may take years to reach breakeven, but on other hand, you got a break-even on the same day you started because you got the products of your money plus you got the opportunity to do the business. It means you got double profit.
As network marketing business is people business, means people deal with people for product promotions. There are so many ways of promotions of products. Some companies follow door to door selling model and teach messages to people that in network marketing this is the only way to do business, due to this people reluctant about this industry, but there are so many other good ways also.
Here one question arises, why it is people business, Network marketing companies can do advertisement through media in newspaper, TV, etc. why they don’t do?
Network marketing meaning is the concept of promotion through usage, if one person buys the product it will use it, if he/she found product genuine and cost-effective then it refers to others, as it runs through reference and company divide profit margin after the sale, in other companies where they spend lots of money on promotions without knowing whether a sale will happen or not.
Scope and future in Network Marketing Business
As per the current scenario, we all know that industries are keep going down due to recession and competition. Unemployment keeps on increasing day by day because there are very few jobs or opportunities in the market. In this scenario network marketing could be the way of hope to people.
In developed countries like the United States of America have adopted this industry. When recession comes, it affects the GDP (Gross Domestic Product) of Nations.
US Ex-President Bill Clinton also endorse Network Marketing business, because in 2008 when the recession hit the nation, this was the only industry that saves the nation’s economy.
Network marketing is a recession-proof industry. If we talk about the scope and the future of this industry, there is a lot of scope in it and it has a very bright future. As per records, Network marketing is billion dollars industry.
“FICCI (Federation of Indian Chambers of Commerce and Industry) report said that by 2025, this industry can touch Rs 64,500 CR.”
So in coming years, it has very huge potential.
If we see employment opportunities in the future, it seems no scope in other industries, and unemployment will touch the sky the only option will be left “Network Marketing”.
Passive income through the network marketing business
A network marketing business is a very good business that can give you a decent amount of money and can help you to make passive income.
Passive income means getting income from some source on regular basis, whether you work or not.
That’s the power of network marketing. Once your network is established, every week or month you will get your Cheque.
Voice of Experts on network marketing business
Big People of IT, Real estate, etc. are big supporters of the Network Marketing business. Let’s see what people like Bill Gates. Warren Buffet, Robert Kiyosaki, Donald Trump says about this industry.
- Bill Gates Founder of Microsoft endorses Network Marketing.
- Warren Buffet has his own direct selling company and he is also a big supporter of Network Marketing.
- Donald Trump – A successful businessman and Current President of the US endorse Network marketing.
- Robert Kiyosaki is a self-made billionaire American businessman and investor. His words are
And there are lots of other successful people who support Network marketing. Now it’s time to accept this industry and make your life a better life.
“People who don’t want to do anything, they always find fault everywhere”
Points to take care of while entering into network marketing business
If you have decided to start a career with the Network Marketing business, at some point you need to take care so that you don’t get cheated, because there are so many fake companies also.
- Check Company legality and its vision
- Company association with other Brands/Companies.
- Company Growth in last few years and current.
- Very Important part-Company financial Model, How company distributes money.
- What kind of people are associated with the company
So the future in this industry is very bright and you can earn a very good amount of reoccurring income. Moreover, you can start this business in very less amount as compared to other businesses
I want to suggest you guys before joining any Network Marketing company. Research that company. Hundreds of fraud companies exist in the market.