what is network marketing
I have full hope that after reading this article, you will not need to read any other articles. Because network marketing is such a topic about which many types of rumours are also spread, Many people also consider this business a fraud. But what is the truth about network marketing? We will learn all this information in the article below.
Because today, apart from India, different kinds of talks are going on about this business in the whole world. There are many such companies in India that use MLM (Multi-level Marketing) to sell their products. Apart from MLM, MLM is known by many other names, such as Direct Selling Business, Chain System, etc.
Any product that is produced in this business reaches the customer directly; there is no commission from any of the distributors who are in the middle. MLM Marketing in India was started in 1965 by the global MLM Company Oriflame. Very soon, MLM marketing started growing very fast in India.
According to the report of the ICCI (Federation of Indian Chambers of Commerce and Industry) and KPMG (Klynveld Peat Marwick Goerdeler) organisations, it is believed that by the year 2025, the network marketing industry will be worth around $625 billion. Looking at all these things, the Government of India has also made some terms and conditions for the Direct Selling Company.
There are many good and big companies too, which have earned a lot of name in India, and there are many such companies in this field that are frauds. If you also search the same question again and again on Google regarding MLM companies, How do I join Network Marketing? So let us tell you that before joining any MLM company, you should know very well about that company.
Because many such companies have come to India, they have run away with the money of all the customers after making a big chain. Let us first know, in this article, what is network marketing.
what is network marketing
Network Marketing is a type of model in which the customer is directly connected to the company. There is no distributor of any kind in between. So that the customer gets a good discount on all the products of the company. Apart from this, in Network Marketing, the company gives many other types of discounts to its customers. No one person does the job in network marketing; It is a kind of chain.Many people also know it by the name of chain marketing. Apart from this, it is also known by the names of multi-level Many people also know it by the name "chain marketing." Apart from this, it is also known by the names "multi-level marketing" (MLM) and direct Selling. Inside this, everyone connects with each other. There are many teams involved in this marketing model. Due to which the sale of the company's product increases. And in the same way, the person who connects the people under him increases his income. Let us see this with an example:
Suppose you have sold a product to a friend; then you will get the commission for this product. After this, when your friend sells a product to someone, your friend will get the commission, and you will also get it. This is a kind of pyramid in which everyone gets a commission. As the people below you join, your commission increases.
In the same way, this pyramid gradually becomes very big, as it is very small from the top and becomes very big while coming down. In the same way, we can understand network marketing by starting from the top of the pyramid. It happens, and as people join it, this company becomes huge, like a pyramid.
definition of network marketing
What is the Definition of Network Marketing? Network marketing is one such business model. In which any person can join and work independently. wherein you have to sell the company's product from one individual to another. For network marketing businesses, sales are mainly done with the help of relatives or friends.Most of the people in this business model come only through the referral of a friend or relative. Because of this, everyone has to create their own network. After that, you get the commission for the product you sold.
types of network marketing
Network marketing works on many levels, but mainly on three types. Let us understand: types of network marketing
1. Single-Tier Network Marketing
Under single-tier network marketing, you can include your product or service in the Affiliate programme of any other company. For this, you'll not want to recruit any kind of staff, and you will not need to build any type of network right here.You will get the Direct Sales price of all the products. Many big companies adopt this model. Under single-tier network marketing, you can also promote your product with the help of the Internet, including Pay Per Click (PPC), with the help of which you can increase sales by driving traffic to your website.
2. two-tier network marketing
Under two-tier network marketing, you need to recruit some employees to sell your products or services. But your benefits do not depend on this. Here, you need to work on some other things along with doing Direct Sales. After that, you have a cell.3. Multi-Level Network Marketing
In MLM (multi-level marketing), companies use a chain system to sell their products. Which is also called network marketing. Under this, the consumers have to make their own downline, after which the company and all the employees working for it benefit. As explained in the example above,how does network marketing works
Network marketing has become a big business in today's world. Day by day, many new network marketing companies are opening. We will know how network marketing works. In this type of marketing, when a person buys the company's product, he becomes a part of the company.And after this, he is told that he should also sell the products of the company by adding many more people to his niche. After which he will get commission. Whatever product is sold after joining an MLM, all the commission remains between the customers. Which we also call direct selling. Let us know, with an example, How Network Marketing works.
Example: A friend of yours who is already involved in network marketing He calls you after a long time. And he asks you about your condition, and you tell him about yourself. Whenever you tell him about something that is related to his company's product, he will tell you about his company's product. Will ask to buy. And will also ask for a commission from you.
After this, he will ask you to add some more people below you. That's how network marketing works, and the circle just keeps getting bigger. Whichever person adds other people under him, a code is used there, due to which it is known how many people are working in that person's team. This is how network marketing works.
network marketing training
When we know all the information about Network Marketing, it is equally important to know about the basic training of Network Marketing, just as we need to know what is network marketing and how to join. Whenever we add someone under us, they have only one question: what information should we give to a new member in basic network marketing training?Right here, we will learn to understand some basic training. Because of basic training, only a person can start his or her further journey. Many times, some things are not told, even in basic training, because the company feels that a member may leave the company. Let us know some important information about the basic training of Network marketing:
1. Tell About the company
Whenever a new member joins the MLM company, he is not told anything about that company. If you are in a network marketing company, then this must have happened to you as well; you would not have been given correct information about the company. What does your company do, who owns it, what kinds of jobs does it offer, and how much salary will you get? All this stuff has been hidden from you.When you go to the network marketing seminar on the first day, you do not understand much there. When you later find out about the company, your trust is shattered. If you want to grow your team, then the member you are calling should give all the correct information about the company.
2. Convincing the new member
Whenever a new member joins below you, you should tell him that you can see the rejections here. And you should tell your guest that whenever you show your plan to a new customer, you will get rejections. When you say this on the first day itself, the person in front will already be aware of it.Only the person who learns to accept rejection in this business comes forward. Apart from this, you can tell that when a person becomes a leader in network marketing, he always remains in this business. That's why you should not be afraid of any kind of rejection.
3. What is his advantage in business
Also, tell your new guest what he is going to get in the future from this business. Ask your guest about his dream, because of which he has joined this business. And you can also tell him your reasons for joining network marketing. You can also tell him why you are working in this business.If the member you call doesn't dream big, he won't stop here. Because only those people stop in network marketing whose dreams are big You can also make your guest write down his dreams in a diary, what he will do in the coming two years, and where he will be after the coming five years.
4. Attend all seminars
You should ask your guest to attend all the seminars. If he wants to be successful in network marketing, he must attend all the seminars. Because those people come to the seminar who are already successful in this business. Where all new members should learn something from those people. If you tell all such things to your guest, then your guest will stay with you and not go anywhere. If you hide anything from him, he will not stay in this business.how to work in network marketing
If you want to get into this business and also have a question about how to work in network marketing, we are going to give you some important information about this as well. So that you should not have any kind of problem in the business of network marketing. Let us know how to work in network marketing.First of all, you have to find out about a company whose product and profile are perfect for you and whose Joining fee is also low. Because many companies make you buy many of their products in the beginning to join. You must stay away from this kind of company.
Before joining any network marketing company, you should get thorough information about that company. There are many such websites on the Internet that show you the reviews of all the companies. You should read the reviews of the company first. The company you are going to join as a network marketing member You should also know how old the company is, how it operates, and what its future holds. It's very crucial to realise all these things.
You should also know about the company's plan. How many plans does the company have, and on which plan does it give you a percentage of commission? You should always choose a plan that is distributor-friendly. Apart from this, you should know all other information about the plan of the company.
After knowing the company profile and plan, you must also know about the products of that company. You should always associate with a company that manufactures such a product. Whose products are always sold. Not like if a product was sold, and after that, the customer did not buy the product for almost two years. The products of the company should be such that they bring in a good profit. Only Then you can be successful in the business of network marketing.
benefits of network marketing
So far, we have learned many important things about network marketing. Now let us also understand the benefits of network marketing. If you learn about the benefits of network marketing, then you will definitely think about joining a network marketing business. Let us know the benefits of network marketing.1: You can join this business with less money
In network marketing, we can also join with less money. The investment in this is very low. Same if you do more business, then you have to invest more money there.2: There is no risk in network marketing
The best advantage of joining the network marketing business is that there is no risk of any kind here. Because of the amount of money we invest in it, we get the products of all that money.3: get the full setup
Here, after joining, you get the complete system. You simply have to be a part of any network marketing company by paying some money. After that, you don't have to do anything right here. Because the whole chain is already running here. And all the products are made by the company. Whereas if you start a new business, you have to put many ideas there.4: Right here, you could earn a whole lot of cash
Your salary is not fixed in the network marketing business; here, you can earn as much money as you want. As your team grows, both your rank and level go up, as does your income.5: This business is a source of passive earnings
You get passive income from the business of network marketing. Although, in the beginning, you have to do a lot of work here. But as your rank increases, your passive income also starts increasing. Passive income is the income that you get even when you are not working.
6: You can also do network marketing part-time
You can also do network marketing part-time. If you have a job and you have one day off in a week, then you can also meet some people on that day and explain your plan. The more you meet other people in this business, the better off you will be.7: no time limit
You don't have any time limits in this business. You don't need to work 8 hours a day like any other job here. Here, you are the king of your choice. If you want to go somewhere, you may go. Here, too, you can go on leave for any number of days without asking anyone.8: Communication and Marketing Skill Development
This is the best advantage to joining the network marketing business. You develop yourself a lot here. Whatever things you are taught in network marketing seminars, you do not get to learn in any other marketing business. Even if you do not want to do this business, you must attend a network marketing seminar for a few days by paying some money. Here, you get to learn advanced-level marketing strategies.9: Here is your nominee
When you join, you are also given a nominee. In which you can nominate any member of your family. Whenever you have any kind of problem or retire from this business, your post is given to your nominee. Whatever your income is at that time, your nominee also gets the same income.10: You can start a network marketing business without a degree
You do not need a degree to join the network marketing business. Even if you are less educated, you can be part of network marketing. Because there is no job of any kind here. It is a type of business model. Here, you are given complete training.11: go on tour
In network marketing, the company also sends you on tours within the country and abroad. Where the company bears all your expenses. These are some of the advantages of network marketing. It is expected that those who are in the business of network marketing will like these benefits.disadvantages of network marketing
The way something has its advantages also has its disadvantages. In the same way, network marketing also has advantages and disadvantages. As we have known about its benefits, Let us now know what the disadvantages of network marketing are:1: hard work, less money
Here, you have to put in a lot of hard work in the initial days to make a good team. Even after that, you do not get that kind of income, which is what you came into network marketing thinking of. Whichever guest you add below you, the maximum income reaches those people who are in a higher position than you.2: It's hard to succeed here
If you want to join network marketing, then it is very difficult to get success here. According to some statistics, out of all the people who join network marketing, less than 1% are successful. Some people leave after joining network marketing. Because this is a kind of chain, and here only those few people who started the company get success.3: high product price
As many companies as there are in network marketing. All their products cost more than the market average. So that he can make a good commission on the sale of all the products.4: Network marketing fraud companies
Most network marketing companies are frauds. The one who takes their money from people and keeps rotating that money among them Many people have also become victims of these companies. And even today, many such fraudulent network marketing companies are operating.5: uncertainty of income
Here, your income is not fixed. Here, you are not paid a salary. When you join by paying here, then after that you have to add some more members below you, and when they add some more members below you, then your income starts coming. And to do this, you have to spend many years.6: bad relationship
Most of the relationships in the network marketing business get spoiled. If you are also in network marketing or have left network marketing, then something like this must have happened to you too. Because of this, your relationship with any of your relatives must have deteriorated. Because this is such a place where you invite only your relatives to form your team, and later, when they come to know the truth, your relations get spoiled.7: not getting respect
People who work in network marketing Generally, other people give less respect to those people. Even Network Marketing people are made fun of. Because there has been so much fraud in this business, people have lost faith in it.8: Whenever a person who is in network marketing goes to meet a friend, only one thing keeps running through the person's mind: that now he will only ask him to buy one of his products. This is a huge disadvantage of network marketing.
Negativity about network marketing among people
Some companies in network marketing have committed so much fraud that, in today's time, everyone has come to know about network marketing. And no one wants to associate with this business in today's time. However, many people have also become victims of such companies, where they have spent many years, and from there they did not get a single rupee, and the company also went away.That's why nobody wants to be a part of network marketing. If you also want to join network marketing, then you should first get complete information about the company. And do it only part-time, as you have been told in the above article that, to date, less than 1% of people have been successful in this business.
what is the future of network marketing
Network marketing is a very fast-growing business today. However, in today's time, due to many fraud companies, negativity has spread among people regarding this business. But those who are in network marketing or those who want to join network marketing always have the question, How is the future of network marketing? What is the future of network marketing?Here, we will learn about this. If you join MLM, can you make your future there? Because this is such a business about which everyone has different views, Let us find out, according to some old data, what the future holds in network marketing.
What will be the future of network marketing? if we talk about it, According to the report of the FICCI (Federation of Indian Chambers of Commerce and Industry), it is a very big business. Which is going to increase up to Rs 65,000 crore by 2025. It is growing very fast. A turnover of more than Rs 65,000 crore will be seen here in the future. Let's explore the future of network marketing from a different perspective.
How is the future of the common man in network marketing?
There is a good future in network marketing for a normal person too, but that is when that person joins a company where the company promotes the guest's money by investing in its product. If any person joins such a company where the money of one guest is given to the next guest in the name of product sales, a lower chain has to be made. The future cannot be made in such a company. Rather, you should always stay away from such companies.
The future of network marketing based on business
As I told you earlier, network marketing is a huge industry. Before 2021, work was done by chain. Where money was earned by adding guests. But now everyone has come to know this, and apart from this, the Government of India has also completely banned this chain system. But even nowadays, some companies are working in the same way. And even today, goods are being sold to many people through the chain system.But now there are many such companies that have been completely destroyed due to the closure of the chain system. Because of which the future of the people associated with them is in danger. People are not joining those companies whose model is chain-linking. At present, only those network marketing companies will be able to run, which will keep the price of their product lower than the market value and ensure that the product is of high quality.
government guidelines for network marketing
In fact, everyone knows that most MLM companies are frauds. And many big MLM companies have come and gone in India. Because of which the money of many people has also sunk. Because of this, most people have the question, Is network marketing legal in India? So let us tell you that Network Marketing is illegal in India Under the Direct Selling Guidelines 2016 and the Prize Chits and Money Circulation Schemes (Banning) Act 1978.
RBI has clearly written in all its MLM-related guidelines that if any kind of fraud happens when you join companies like chain marketing, network marketing, or direct selling, then the government will not have any responsibility for this. You can search Google by typing Direct Selling Guidelines 2016 Pdf to read the complete Guidelines of the Government of India.
If you want to join Network Marketing, then you should choose companies that provide you with a chance to earn money in some other way than through chain and pyramid schemes. Only then you can make your career in this field.
Frequently asked questions about network marketing
Network marketing is a very big industry, and many people have different types of questions. In which the future of network marketing and how much money can be earned from network marketing What is the salary of people who are already in network marketing? Many such questions come to the minds of the people, so let us know the answers related to all these questions:Questions and Answers
Q: What will be the future of network marketing in India by 2025?
How will the future of network marketing be in India by 2025? To know this, we must understand the figures for 2021. In the year 2021, network marketing was worth 159.3 billion yen, and by the year 2025, it will increase to ₹645 billion yen. From this, it is clearly visible that whatever the good network marketing companies are, their future is going to be brilliant. The same companies that commit fraud by diverting people's money here and there will all end.
Q: Leader in Full Form in Network Marketing
L-Lead by Example
E-Excitement
A- Ambitious
D-Determination
E-Encouragement
R-Ready to Learn
S-System
Q: Why do people leave network marketing after some time?
Those people who get a good company make their future in this business. People who get a fraud company whose product cost is very high, and no one wants to join that company. There is already negativity spread about that company in the market, so people leave this type of company.
Q: What work has to be done in network marketing?
In network marketing, you do not have to do any work in which you have to lift weights or do any other hard work. Here, you have to work with your mind. Here, you have to explain the plans of your company to other people. And the person in front has to be convinced about his company and product so that he can connect with you. The same thing has to be done in network marketing.
Q: Does it feel strange while explaining the plan of network marketing?
It sounds so strange when talking about network marketing. Because fraud happens with most of the people in this business. They are not called directly by saying that you are joining a company where you have to add other people below you; rather, they are called by saying that. Because the job is vacant here and you do not have to do anything here, people add people to network marketing by making many other excuses. If you are in a good company and its products are good, then you will not feel anything strange about telling the plan. You should tell the plan; it is the wish of the person in front of you to join or not; you cannot force him.
Q: Should I leave my job and go into network marketing?
If you have a good job and your home is doing well with your job, you should not quit your job and go into network marketing. However, if you also want to join an MLM company, you can buy their products by paying some money and become a member of that company. After this, you can start adding your niche by telling part-time people about the plan. But you should not quit your job.
Q: Do people who are already in network marketing earn more money?
Yes, this is absolutely true; people who are already above average earn more money. In fact, the people who started the company earn the most money. Because according to many studies and statistics that have come out, only 1% of people are successful in the business of network marketing, and those people are the ones who are at the top.
Q: How much salary is there in network marketing?
Let me tell you, network marketing is a kind of business, and here you do not have any kind of monthly salary. Here, you have to sell products to other people by adding them to your niche. After that, you get some commission from that. If someone joins you in network marketing by saying that you will get a $10,000 or $20,000 salary in a month, it means that person is lying to you, and you should not leave your job and go into network marketing in that affair. Because here, you get a commission on the product you sell. And the products of most MLM companies are very expensive, due to which people do not want to buy them or join other companies.
Q: How do I earn money in network marketing?
To earn money from network marketing, you have to invest money here first. After this, you can earn money. Investing means that first you have to join any good network marketing company by paying money. After this, you have to add other people below you to sell the products of that company. After this, money starts coming to you. If you are not able to add anyone under you, then you do not get any money here in any way.
Q: How do I add people to network marketing?
If you want to build a big team of your own in network marketing, then you have to add many guests below you. Here the biggest question comes: how do you invite people into network marketing? If you want to add a lot of people to this business, then you must first have complete knowledge about all the plans of the company. So that you can explain the company's plan to the person in front with full confidence. Apart from this, you should also have the skills to attract people to you, which you are taught during the training for network marketing.
Q: When did network marketing start?
There are many different opinions on the Internet regarding the question of when network marketing started. But let us tell you that American businesswoman Persis Foster Ames Albee started the network marketing business in the year 1886. She previously worked for a perfume company, which later started the Avon company. You can also read their Wikipedia page to learn more about them.
Q: What is the power of network marketing?
When talking about the power of network marketing, a good company reaches heights on its own. And even today, there are some network marketing companies in India, and the people working in those companies are earning good money. This is the power of network marketing. But only those companies that are performing well can do this.
Thanks for reading.
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