There has been a new breed of Internet Network Marketing Business Opportunities that have sprung up in recent years that relies and leverages on Internet technologies.
One distinct difference between these and the traditional network marketing business opportunities is that their products are 100% virtual — information. Because information could be delivered online via videos, audio, text and images, customer fulfillment is instantaneous upon purchase. Instant gratification raises customer satisfaction.
Top 4 Advantages of Internet Network Marketing
Distributors for these Internet Network Marketing Businesses have significant advantages over their traditional network marketing business opportunities counter parts.
Here are 4 top reasons internet network marketing triumph over traditional network marketing business opportunities:
1) No need to stock up inventories of expensive physical products (that means cash that would otherwise be spent could be channeled to advertising the network marketing business)
2) No shipping cost involved, either by the network marketing company or it’s distributors.
3) High compensation payout to the distributors due to the extremely high profit margin for the virtual products.
4) 100% money back guarantee is often offered to prospective customers. It costs the network marketing company no more for a customer to try out the products then later return them; than if they like the products and continue using them. This reduces the risk for the customers who aren’t sure if the products are for them. This leads to a high customer confidence and satisfaction.
Harnessing The Power of The Internet
Since the advent of the Internet as a new and powerful marketing medium, a whole new industry was created that is Internet Marketing. It has increasingly been adopted by advertiser who traditionally dealt with TV, radio and print advertising.
Due to the nature of the products — virtual, internet marketers who join them as distributors consistently top the chart of the top recruiters in the companies.
Why Is Downline Attrition Rate So High
Unfortunately, proportionally to the high recruitment rate, attrition rate is also at an all-time high.
Why?
Simply because they are Internet Marketers. Not Network Marketers. The programs they promoted via the various internet marketing techniques are still Network Marketing Business Opportunities after all.
A sponsor-downline relationship needs to exist and maintained in any network marketing business.
But first, let’s examine what’s “wrong” with the network marketing business opportunities.
Through my observation there seems to be a certain “taboo” whenever “network marketing”, “MLM” are uttered.
Why Are People Negative About Network Marketing
One of the reasons, is that many people have bad encounters with network marketers, particularly with their friends or relatives who are involved in network marketing.
They have been “pestered” so much by them to buy their products which they aren’t interested they simply shut themselves out when anyone approaches them with any “network marketing products”.
The other reason is that they have heard from those same network marketing friends many failure stories about people involved with network marketing businesses. Thereafter words such as “scam”, “fraud” immediately come to mind for everything and anything network marketing related.
All these happened before they even understood what network marketing business really is. Even those who were involved in network marketing did not know that! Many got involved believing they could get rich with the business.
And they were right. Network marketing is one of the best ways to create wealth, even for the average individual.
What Is Network Marketing?
It is a business in which a distributor network is needed to build the business. Since the network marketing companies do not engage in advertising themselves. The cost saving is then passed down to reward the distributors in the form of commission whenever sales are made.
Usually such businesses are also multi-level (MLM) in nature in that payouts also occur at more than one level. This kind of compensation model greatly leverages each distributor’s effort.
Why Did So Many People Fail
The answer is simple. Firstly, they recruit the wrong people who aren’t ready for network marketing business. Many of them are out only to “give it try”. They are the ones who’d be the first to leave the business — and your downline organization — when they don’t see immediate results.
It is an irony that many people are aware of get-rich-quick scams, yet they want to see the money as soon as they join a program.
As Robert Kiyosaki mentions in his book, CashFlow Quadrant, “Network Marketing is for everyone. But not everyone is for Network Marketing.”
Network marketing, like any other businesses take time for the distributors to reap their return on investment.
Secondly, they don’t take the necessary actions to build their business.
Sometimes, things will not go according to plan. That is ok. We all face challenges and failures on the journey of building our business. You can always draw the line and make a new start in your business. Use the failures and challenges as a learning experience and as a stepping stone toward your success.
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