One of the best strategies of making money online from home is through network marketing. This can be demonstrated by the number of individuals who have become millionaires by taking advantage of these opportunities. Studies in the USA alone reveal that this is one of the fasted growing sectors that have produced the highest number of millionaires.
Network marketing programs also known as Multilevel Marketing have mushroomed and are now rampant on the internet. Most people in their pursuit to generate quick cash, have ended up joining bogus programs. In the process they have lost their cash and sadly lost valuable time.
You may be asking; what is network marketing or multilevel marketing?
Ideally, having numbers makes the difference especially when it comes to marketing. The best explanation of this type of MLM is where a company rewards its customers or representatives for referring others to their products or services.
The advantage of MLM is that a company can reach other potential customers that they would otherwise not get if they used conventional marketing strategies. Ask yourself, how many companies have paid you for talking and referring others to their products? Network marketing does exactly that; they pay you for referring someone who buys their product.
The chain that a product goes through before it reaches you is long. People who are in this chain all want to make money thus they add a small mark up of which they pass on to the final user. These costs include the whole seller, Retailer, advertisements and so on.
What network marketing companies do is to sell the products at its usual price but pass on the money that middle men would have made to the customer who refers others. Since the customer is the one that will be doing the advertisements, MLM companies do not allocate any budget for advertisement.
Why do MLM firms pay you for promoting their products rather than use that money to put up advertisements?
The reason is simple, network marketing organizations what to access the people you know. These include your colleagues, friends and family members and so on. Most of these people will believe you when you tell them about a certain product rather than when they see the same product been advertised on TV or billboard.
An aspect that is distinct between companies doing direct selling and MLM is that with MLM you can market anywhere the companies has customers. On the other hand, direct selling companies are assigned a particular region thus they cannot venture outside those demarcated boundaries.
What to watch out for before joining any network marketing opportunity:
Sometimes network marketing opportunities are sent to people through well drafted emails and online advertisements. The messages in these emails are full of high pitched marketing messages promising to make you fast and easy money.
It is advisable to be cautious whenever you come across an online home based program that sounds too good to be true. In most cases, some of these MLM opportunities are pyramid schemes that collapse after a few months.
There have been cases where some of these network marketing scams use the sign up fees to pay the existing members. This is an indication that they are not generating any revenue, thus when their system reaches a saturation point the program simply crumbles.
A simple way of telling whether a network marketing opportunity is legitimate or not, is to find out if there is a product or service been offered. Do not be lured into any MLM program just because the money to be made sounds good. If the program does not have a discernable product or service that adds value to users, then that is an outright online business scam.
Studies have proven that with most online scams, out of 50 subscribers’ only 1 person makes the money that the programs claims one can generate. An opportunity can sound so inviting but the minute you get on board you discover it was mirage.
Some of the lines they dangle before you include “Pave your way to online riches with just $10” or “Make easy and fast money online while you sleep.” Online business is not as easy as some people would like you to believe, you need to invest your time, effort and hard work in order to be successful.
Avoid network marketing programs that say that you can retire within a year. The top MLM earners will tell you how they have worked hard for several years to get to where they are today.
So as to avoid been a victim of online network marketing scams conduct thorough research. Join online forum sites that discuss Multilevel Marketing Plans and ask questions. Chances are that someone has joined the programs you intend to enroll in and they could give you their honest opinions.
Don’t stop at that, read online reviews that share about various MLM programs especially on sites that discuss on internet scams. If the network marketing site has posted testimonials, call up some of them and confirm if what they have shared is true.
Some of the industries that have now adapted network marketing include
1. Travel (this industry is believed to generate over 7 trillion dollars yearly)
2. Health and Wellness
3. Weight Loss Programs
4. Nutrition 5. Financial Programs
6. Communication Services and the list goes on and on.
Conclusion: The main reason that companies are shying away for conventional modes of marketing is because of the high cost of advertisement. In most case, these advertisements do not produce the required results.
Research has shown that the most powerful method of advertising is through Word-of-Mouth. It is even more effective if the message is passed on to you from people you know so well and trust.
I hope from this article you will open up your mind to network marketing. It is critical that you realize that MLM is not about breathing on other people’s necks by telling them to join your program. Instead you have to tactfully and prudently gauge your circle of friends and determine those who would be interested in what you have to offer.
Robert Kiyosaki puts it so well when he said “Network marketing is really the school for people who like helping people”. If you want to achieve financial freedom, willing to cooperate and work with other people and learn more about the MLM program you intent to join, then network marketing is the right business for you.
The best work from home programs is MLM, this is evident especially with the prevailing economic hardship. Getting a white collar job can never guarantee your financial independence that is if you can find one.
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