Network Marketing – Why?
Network marketing is not a new trend. It has been successfully adopted by brands such as Amway, Tupperware, Avon, and Nu Skin for years. These brands have shown that network marketing is not just any business model, but that it has the potential to help a business grow tenfold in less time.
The ultimate aim of network marketing is to increase profits by increasing sales. The strategy followed is quite simple, though it might sound complex and confusing in the initial stages. Also known as MLM or Multi Level Marketing, this business model relies on agents (not employees) to market the brand and generate sales.
Instead of following an extensive network of distributors, wholesalers, and small-time sellers, the enterprise directly uses agents (who can be distributors or employees of another firm or homemakers) who will market the brand among their friends and family.
Network Marketing
Network marketing is the best thing because it allows you to build a business from home. You can be your own boss, set your own hours, and work as much or as little as you want. With network marketing, you can also earn a residual income, so you can continue to earn money even when you’re not working. This is a great way to build financial security and to have extra income to live a better lifestyle.
They build a network of customers, it would hire some of them as agents if they are interested. The agents get a commission for the sales they generate. The equation is straightforward. The more an agent sells, the more commission they are eligible for.
As the agents continue to build and expand the network, the agents have to place in a comprehensive system or hierarchy for the enterprise to keep track of the sales, referrals, and payments. For this, the enterprises can follow any of the available MLM plans or create one only for their business.
This is where network marketing software comes into the picture. If the business model is unique, the software also has to be unique to support the model.
Many companies have created MLM software that can be personalized as per the specifications of each business. When combined, the business model and the software become a formidable weapon for enterprises to compete in this ruthless market.
As a direct sales organization, Longaberger review its goods through a network of independent distributors, all of whom are also Longaberger’s clients.
What Are the Benefits of Network Marketing?
While there are many benefits of network marketing for both enterprises and agents, let us focus on the benefits that are common to them both.
Minimize Risk
Operating a business itself is a risky task. There are no guarantees, and the losses can slip to the absolute bottom if not careful. With network marketing, the cost of investment is low for the enterprise and the agents. The business starts slowly and then climbs up the ladder one step at a time.
Agents don’t buy the products in bulk before they sell them. With an initial investment to purchase the beginner’s kit, start marketing and place orders for more stock as and when the customers require.
No Need to cap the Income
Be it enterprises or employees or agents, there is no need to limit the earnings from the business. The agents are paid a commission for their hard work, unlike employees who get the same salary no matter how much effort they put into the work.
To boost the morale of the agents, enterprises also set targets and offer handsome rewards and bonuses.
Keep Only the Minimum Number of Employees
Enterprises hire only the number of employees required to run and manage the business. The rest of them are agents whose primary task is to sell the products and hire more agents.
The agents do not have to report to any boss. They work together, forming and interacting with like-minded people in similar businesses. They build and connect the networks to expand them to various unexplored markets in the country and other parts of the world.
Flexible, Scalable, and Convenient
The network marketing business model is highly flexible. It can be changed and adjusted as the business expands. Not just the network, but the agents too can plan the sales at their convenience. They can follow up and create more opportunities for themselves and meet new people.
Customizable Software Solution
Network marketing software does everything the business expects from software and more. It streamlines the business, connects the various departments of the enterprise, keeps track of the inventory, manages the agents in the network, calculates their commissions, creates websites, can be integrated with payment gateways, can back up data, provides data security, and generates reports of sales.
E-wallets, an E-ticket system to track customer complaints, sending automated responses to emails, sending business SMS messages to agents and customers, having multi-currency and multilingual modules for international business reach, etc, are some other features of this software.
Enterprises following the network marketing model can contact the companies that provide MLM software for more information.
From installation to training employees, to hosting the software, and providing post-installation technical help, the companies help enterprises in using and managing the software with ease.