NOTE: Although this article is about network marketing, its principles can be applied to its newest and increasingly common cousin, internet marketing. A majority of internet marketing programs and businesses are network marketing programs in the final analysis. One common error shared by new internet business owners, or non-internet business owners, is the assumption that they should market their program in a more standard manner. However, if you consider the cost of advertising your new internet cellular phone services against, let's say, Verizon Wireless or some other major wireless service provider, the task of competing with such a giant in a normal advertising arena is daunting at the least and frankly impossible at the worst.
That's where the network marketing thing comes in.
When most people sign up for any network marketing programs, internet based or not, they usually have no idea what they have actually gotten themselves into. Many will join a network marketing program in the expectation of easy money, an idea often provided by the network marketer who brought them into the business. They commonly try to apply standard marketing techniques, or at least as they understand them, without also understanding the forces which they are operating against as pointed out in the Verizon example shown above. Even those who simply want to start their own home business just to get out of the rat race, spend more time with the kids, or start a retirment fund, find that the costs in money and time of running a real business, internet business, brick-and-mortar business, face-to-face network business, or lemonade stand goes against all their expectations if they try to do it using standard marketing techniques. Their dreams of financial freedom often become a financial ball and chain attached firmly to their wallets and their watches.
However, all is not lost if they apply the purest form of network marketing and forget about going head-to-head with the Verizons of the world.
In its purest form, network marketing is simply one person telling another. The classic example is the time you chose to try a certain restaurant because a friend recommended it to you. I recently had my car repaired at a garage recommended by the home inspector I used when I bought my house. The home inspector seemed to be an honest fellow with ties to the community, so I was happy to take his advice, and I was not disappointed. I could have looked all day in the phone book to find a mechanic who may or may not have been as reliable.
Unfortunately, a network marketer cannot rely on this passive sort of word-of-mouth alone. He or she must become active, hence the "networking" aspect of this sort of business.
No matter what goods or service you choose to represent, there is almost certainly a business entity capable of providing it as well as you...perhaps even better! Even so, many network marketers make an excellent income because there ARE plenty of people willing to buy from someone they know and trust, even in those cases where the product may be more expensive or delivery takes longer. Sometimes, these sorts of purchases will be for convenience as well as for friendship's sake. Take Avon, Mary Kay, and Arbonne, to name a few. Excellent products, but anyone can go to the abundance of drug stores, groceries, and Wal-Marts and purchase cosmetics...perhaps even at a lower price. They buy from their distributors out of friendship with their distributor, respect for the product, or the benefit of having their order dropped off at their home or office...or a combination of these.
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