What
Exactly is Network Marketing?
Network Marketing (also known as
multi-level marketing-MLM) is an efficient method of distributing aproduct or
service to the end consumer, through word of mouth, or friend -to-friend
referrals. Network Marketing is a marketing method where each person is an
independent distributor with his or her own business, not a company employee.
It is an effective and powerful marketing system, and a perfect vehicle for
home based business and the decentralization of business, which is rapidly
approaching. There are approximately 10 million distributors currently in the
United States, who sell between $15 to $20 billion dollars in products and
services annually. Yet, while more and more people are enjoying its benefits,
most are still very unfamiliar with it.
A Brief History
of Network Marketing
Who actually pioneered this business? When
did network marketing actually start? In 1945, Carl Rehnborg was known to be
the first person to introduce a compensation plan to market his nutritional products.
His company was originally called the California Vitamin Company, but later
renamed as Nutrilite Products Inc. Using a multi-tired plan, it allowed any
Nutrilite distributor to get a 3 percent commission from a downline on top of
the regular commissions from his own sales. With this system, Nutrilite
achieved stunning success compared to the old “direct-selling” method. In 1959,
two good friends- Rich DeVos and Jay Van Andel- started a new company called
Amway Corporation selling biodegradable all-purpose cleaner. By using a network
marketing compensation plan, the tiny enterprise achieved remarkable success
with a sales force all over the United States. Dr. Forrest Shaklee did the same
with nutritional products in 1959 with Shaklee products. Over the years,
network marketing has evolved and diversified into a wide range of products and
services as more companies have adopted this marketing method.
Network
Marketing is not an Employee/Employer Relationship
As a network marketer, you do not work for
the company; you work with the company. The business relationship is a tangible
and dynamic partnership where the company provides: the products and packaging, research and development,
capitalization, financial management, legal and regulatory compliance, data
processing, administration, order taking, purchasing and production, quality
control, product satisfaction guarantees, warehousing, shipping, creation and
production of marketing materials, and so on. So even though you are in
business for yourself—you are not in business by yourself.
No comments:
Post a Comment