FAQs About Network Marketing (Beginner’s Edition)
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Network marketing can seem overwhelming at first. People can get intimidated because they don’t understand what is going on. In this blog, we will help you get a basic understanding of network marketing. Here are our answers to some of the most frequently asked questions (FAQs) about network marketing.
Q: What exactly is network marketing?
A: Network marketing is a business model where individuals sell products or services directly to others within their network. It is successful because it gives a more personalized touch to shopping than entering a big box store does.
Q: Do you need to use your product to sell it?
A: Technically, no. You don't have to use the product you want to sell. But how much more believable would you be if you could give a testimonial of the product's benefits?
Since you will sell this product to people you know, you want to research the companies you consider joining. Choose one that offers products you can wholeheartedly stand behind and with values that align with your own.
You should not, however, be required to purchase a product before selling it.
Q: Where do network marketers sell?
A: Before we became a digital world, network marketing was limited to the people who directly knew. Now, your options are endless. Network marketers can sell their products to friends and family, but they don’t have to stop there. They can create social media platforms that attract potential customers and recruits. They can sell at special events, the workplace, and even (sometimes) schools.
Q: Who is a good fit for network marketing?
A: Network marketing is not for everyone.
Network marketing is a good fit for someone passionate about things they love. It’s a good fit for someone with an entrepreneurial spirit. Someone who is driven, organized, and responsible could succeed in network marketing.
Network marketing is not for someone just looking for a get-rich-quick scheme. It’s not for someone expecting this to be a laid-back walk in the park.
Q: Do you need a sales background to succeed in network marketing?
A: Don’t stress if you don’t have a strong sales background. You can still find success from training through your company and even hiring a coach. Many people have negative impressions of selling. But selling is one of the top earning professions in the world. If done correctly, you don’t need to be pushy to make sales. People will come to you to buy your products.
Q: How do you start?
A: For most companies, you will begin your journey by purchasing their introductory kit. This kit may include training information, company swag, and samples of products that you will be selling.
Find out what the company you are interested in provides. It’s helpful also to find out if they require anything of their new recruits (certain sales per month, a certain number of recruits, etc.).
Once you receive your introductory kit, you should be ready to begin selling.
Q: What are recruiting and team building?
A: Network marketers tap into building a successful business by building up their team. In network marketing, once you recruit a team member, you earn a commission off of their sales as well as your sales. This setup incentivizes you to recruit and help your team reach success.
A good team leader will help retain new recruits, offer them network marketing training (even beyond what the company has offered), and help set their recruits up for success. Their success becomes your success.
Q: How do network marketers make money?
A: Network marketers make their money in two ways:
- Their direct sales
- Their downline’s sales
You can generate income from your own sales, but when you begin recruiting and building a team underneath you, that is where network marketing becomes really successful. As your recruits find their own recruits, you will then earn commission from their sales, too.
Q: This sounds familiar; are there other names network marketing goes by?
A: Network marketing. Multi-level marketing. MLM. Direct Sales. These are all names for the same practice of selling products to others within your network.
Q: Is network marketing a pyramid scheme?
A: No. In addition to being illegal, pyramid schemes don’t focus on selling products. Individuals at the top of pyramid schemes make their revenue from recruits paying into the scheme through fees and mandatory selling quotas. They don’t care about their actual products; they just want more people to join so they can leech their fees from them. Pyramid schemes run until they can’t find more recruits or until law enforcement shuts them down.
If you have joined an MLM with products you love and believe in, you are not part of a pyramid scheme.
Q: What can I do if I want more direction in my network marketing business?
A: Reach out to your upline. Find out what resources are available to help you become successful. If you aren’t satisfied with the training provided by your business, consider hiring a network marketing coach. Coaches can help you navigate network marketing in a digital world to maximize your reach (and, therefore, earnings).
If you didn’t see an answer to your network marketing question, feel free to ask!
