An Overview of Network Marketing
Many people are familiar with the idea of network marketing and the concepts behind direct selling. This form of business is primarily focused on selling products directly to a customer and earning a commission in return.
As an example, let’s consider Mary O’Brian who sells apple pies to local customers on a weekly basis. If she produces and sells enough apple pies, she can earn her salary from commissions and still have time to also produce other types of desserts while making some extra profit.
In this system, the distributor’s compensation is based on a percentage of sales. If a distributor sells 20 pies, he would receive 2% as his commission. On average, the commission is generally 15% of the total sales price. This type of compensation works well for distributors who sell many items over a short period of time. However, this type of compensation has less value to distributors who have ongoing relationships with their customers and are not dependent on commissions to earn a living [1]. In addition, it is necessary to pay commissions that are based on percentages during periods when sales are slow.
Another important difference between network marketing and direct selling has to do with how the compensation is paid. In direct selling, commissions are paid out when a sale is made. In network marketing, commissions are typically paid out by the end of each month or quarter based on accumulated sales figures [1].
One criticism of direct selling is that it can be difficult for distributors to determine how much money they have made [2]. For example, individuals who decide to start a career in network marketing may not be sure of the details about their income compared to other distributors who have been working in the industry for more than five years. Similarly, distributors may not know if their income was influenced by commission payments compared to sales of other products.
Understanding the difference between direct selling and network marketing can help people decide if they want to enter either industry. For example, individuals who are not interested in building long-term relationships with customers may prefer to start a career in direct selling. In contrast, people who are looking for a job that offers long-term stability may consider starting a career in network marketing. [ARTICLE END]
How did you like this informational article about the difference between network marketing and direct selling? Please leave your comments below!
References: [1] Marketing Power: The Definitive Guide to Network Marketing by Ron Puryear, Direct Selling Association, retrieved April 23rd 2013 from http://www.dsa.org/membership_resources/education_and_marketing/marketing_power.html
<br> [2] Marketing Power: The Definitive Guide to Network Marketing by Ron Puryear, Direct Selling Association, retrieved April 23rd 2013 from http://www.dsa.org/membership_resources/education_and_marketing/marketing_power.html
Title: An Overview of Network Marketing [PART 2]
A network marketing company is one where distributors get paid for recruiting other distributors, either financially or through retail products or services. Not all network marketing companies are the same. They may be local or national, public or private, and may sell many types of products, such as cosmetics, automotive or health and beauty products. The point is that you never know what you're going to find until you try it.
One part of a network marketing business that's often overlooked is the tools available to help you research and learn about this type of business option. A good place to start is on the Internet where there are a variety of different reviews and tips out there for you to use if needed. Just make sure that whenever you're looking at information about network marketing that it's presented in an unbiased way (This means not slanting it towards one product over another).
What it comes down to is this:
Network marketing is a business model that can be extremely rewarding, but only if you treat it like a business. Network marketing has been around for many years, and has survived due to its ability to adapt, change and innovate while keeping with the basic concepts of the business model itself.
Title: Network Marketing Reviews For Starting A Business
A network marketing company is one where distributors get paid for recruiting other distributors, either financially or through retail products or services. Not all network marketing companies are the same. They may be local or national, public or private, and may sell many types of products, such as cosmetics, automotive or health and beauty products. The point is that you never know what you're going to find until you try it.
One part of a network marketing business that's often overlooked is the tools available to help you research and learn about this type of business option. A good place to start is on the Internet where there are a variety of different reviews and tips out there for you to use if needed. Just make sure that whenever you're looking at information about network marketing that it's presented in an unbiased way (This means not slanting it towards one product over another).
What it comes down to is this:
Network marketing is a business model that can be extremely rewarding, but only if you treat it like a business. Network marketing has been around for many years, and has survived due to its ability to adapt, change and innovate while keeping with the basic concepts of the business model itself.
Title: Network Marketing Reviews For Starting A Business
A network marketing company is one where distributors get paid for recruiting other distributors, either financially or through retail products or services. Not all network marketing companies are the same. They may be local or national, public or private, and may sell many types of products, such as cosmetics, automotive or health and beauty products. The point is that you never know what you're going to find until you try it.
One part of a network marketing business that's often overlooked is the tools available to help you research and learn about this type of business option. A good place to start is on the Internet where there are a variety of different reviews and tips out there for you to use if needed. Just make sure that whenever you're looking at information about network marketing that it's presented in an unbiased way (This means not slanting it towards one product over another).
What it comes down to is this:
Network marketing is a business model that can be extremely rewarding, but only if you treat it like a business.
Conclusion:
Network marketing is a business model that can be extremely rewarding, but only if you treat it like a business. Network marketing has been around for many years, and has survived due to its ability to adapt, change and innovate while keeping with the basic concepts of the business model itself.
Title: An Overview of Network Marketing [PART 3]
A network marketing company is one where distributors get paid for recruiting other distributors, either financially or through retail products or services. Not all network marketing companies are the same. They may be local or national, public or private, and may sell many types of products, such as cosmetics, automotive or health and beauty products.