Network marketing, or multi-level marketing is one of the fastest growing business models in the past decades. Between 1993 and 2003, the direct sales total revenue showed a dramatic 7.1% increase over the economic growth rate.
Among the most outstanding examples of direct sales companies are Amway, Avon, Mary Kay, Nouskin, Herbalife, etc. that were recently released. In 2003, US direct sales revenue totaled over $ 29 billion, about 1% (US Census Bureau) over US $ 3,397 billion in total US retail sales.
Such a successful business model probably has lessons that all business people can learn. This business model family is defined as a distribution method in which people are paid for the sales quantity generated by people who have registered with the distribution network. 20% of American adults are "direct sales agent (now 6%)" or "direct sales agent (14%)" defined as "consumer products and services away from directly managed stores, people to people" I report it. In 2000, 55% of American adults reported that they had purchased goods and services from direct sales agents.
A considerable number of network marketers have negative experience in this industry. As a result, 70% of those who have become direct sales agents no longer enter the industry. In this column we will not address the issues and problems of the network marketing model. There are many websites on that topic.
We all work for ourselves. The era of "workers" is over - your career is your business. Multilevel marketing makes it obvious. But what makes the sector most attractive is that the intrusion barriers are low and there are also some of the biggest dangers. Even if you do not have the skills necessary to run a successful business, many people will enter it.
We are mainly interested in lessons learned from business schools that can be learned from the practice of successful network marketing. In recent interviews with some of the top industry experts, seven lessons were found that sales and marketing experts can use to exercise regardless of industry.
All business is relation-based business
Mr. John Milton Fogg, Networking Times Author The world's largest networker , And one of the most successful teachers of network marketing. We can not sell poor products with outstanding relationships, but at least functional relationships are necessary to sell products. This is particularly noticeable in multi-level marketing.
Analyze think about network
Shaul Gabbay, his book Social Capital in Financial Capital Creation: Cases of Network Marketing , The fastest rising group among entrepreneurs [of the direct selling representatives who were studied] It was a person who had the first weak connection with a weak network. In other words, successful sales representatives are trying to penetrate the market as it is and to gain a high share in that market. This is easy if the unreachable market is very dense. Everyone in it knows all the players. why? Oral in that type of network is to propagate more quickly about the value of your product or service. This principle is particularly noticeable in network marketing, which is the "network functioning" industry. However, the same idea applies to almost all business.
Create a community around the product
One of the big ironies of the software business is that many software companies outsource the development from the coast, but many companies outsource customer support. The best software is accessing your user forum and Act! It is a very cheap way to support the best products. Multilevel marketing companies are mostly localized for sales, support, follow-up, recruitment.
Utilize univeried
In 2002, 79.9% of direct sales sales force was female. 56% have completed only partial college education, technical school, trade school, or only high school education. This sales force is typically very different from traditional American corporate sales force with many men and high educational standards. However, the direct sales sales representative looks like a customer. Because common cultures and interests create the basis for building faster relationships faster, people can become highly effective salespeople when selling to their community.
First build a relationship
"Internet marketers and network marketers share a common end-of-life disease." If we consider the whole process like date, we will bring someone to the website and have sex quickly As one of the delicate aspects of network marketing, the success of the network marketing model shows that many people comfortably build a multiplex relationship. Their friends are customers and vice versa. Delicate and can do the same thing.
Everyone is not a prospect
As with many other sales representatives and marketers, one mistake that some network marketers make mistakes is thinking of everyone they encounter as prospects. In network marketing, this is known as the "Three Foot Rule". In other words, people within 3 feet are prospective customers. But the top network marketer will not do this. According to Max Steingart, the founder of the network marketer's "Success Online" training course, When Make your pitch, but further if Make your pitch. "We just build a relationship with many people" There is no schedule. "If you can make it in time, you know."
Use online network
The network marketing industry is a particularly excellent industry for leveraging online networks. Steingart teachers specifically teach you how to "make the world into your warm market" using an online network. When he starts talking about the possibility of participating in his distribution network by sending an instant message, he reports that 50% of the contacts respond to the conversation. More and more sales and marketers accelerate sales using online networks.
What can traditional business learn from best practices of successful network marketers? I am waiting for opinions and opinions.
