What Can We All Learn from Network Marketing? Seven Lessons for Every Business

Network marketing or multi-level marketing, is one of the fastest growing business models in recent decades. Between 1993 and 2003, total direct selling revenues grew by 7.1% per annum, significantly above the growth rate of the economy - and the total retail sales (according to the Direct Selling Association) Member Key examples of direct selling companies include Amway. , Avon, Mary Kay, Nu Skin, and Herbalife, which recently went public. In 2003, the trillion total direct selling sales totaled more than $ 29, or almost 1% of over $ 3.397 billion for the total U.S. retail sales (U.S. Census Bureau). Any business model that has achieved this kind of success probably has lessons that all business people can learn. It defines this family of business models as a method of distribution #, where people are paid for volume of sales generated by people who have taken in the distribution network. 20% of American adults reported that they are now (6%) or were (14%), a direct selling representative - defined as "the sale of a consumer product or service, person to person, away from home retail fixed. "In 2000, 55% of American adults reported having, at some point, goods or services purchased from a number of direct sales network marketing have representative.A significant negative experiences with the industry. That's because 70% of all the people I've ever seen a sales representative is no longer live in the area. For the purposes of this column will not go into the challenges and problems of the model of network marketing. There are plenty of Web sites on topic.We that all the work for ourselves. Gone are the days of being a "company man" - your career is your business. Multi-level marketing just makes it explicit. Yet, one of the things that makes the sector more attractive, the low entry barrier, which creates the largest of its dangers. Many people get into it without the skills necessary to run a successful business.we are mainly interested in the lessons that all business people can learn from the successful practices of network marketing. We recently interviewed some of the leading experts in the field and found seven lessons that all sales and marketing professionals can use to be more efficient, regardless of their industry: Every company has a relationship based on John Milton Fogg says attivitàSun, founder and editor of Networking Times, author of The Greatest Networker in the world, and one of the most successful masters of network marketing. You can not sell the product at lower-quality product with a higher ratio, but you need at least a functional relationship to sell yours. Particularly striking is that in multi-level marketing, an industry built around belly-to-belly sales.Think analytically on reteShaul Gabbay, in his book capital in the creation of financial capital: the case of Network Marketing, reports that the fastest rising group of entrepreneurs [of direct sales representatives who studied] were those who initially had an extensive network of weak ties. In other words, successful salespeople to penetrate the market intact, market and then work to gain market share in this. This is easier to do if that market is very dense intact, everyone knows all the players. Why? Because word of mouth in that type of network will spread more rapidly on the value of your product or service. This principle is particularly evident in network marketing, an area where "networks go to work." However, the same idea applies to almost every community around the business.Create prodottoUna of the great ironies of business software that is not only not many companies outsource software development offshore, so many clients outsource their support to customers! When Best Software encourages you to visit their user forums to discuss your problems using Act! software, which is a very economical way to support their product better. Multi-level marketing companies rely almost exclusively on their communities for sales, support, follow-ups and leverage recruiting.LeverageNel 2002, 79.9% of the direct selling sales force was female. 56% have completed only a partial college education, technical or vocational school, or have only a high school diploma. This seems very unlike the traditional sales force sales force American business, which generally is much more male and has a level of education. However, the direct sales force selling looks just like their customers. People can be very effective salespeople when selling to their community, because the common culture and interests of creating a foundation to build stronger relationships quickly.Build a first report "Internet marketing and marketing network share a common, terminal illness, "says Fogg. "If you think of the whole process, like dating, bringing someone to our website, and then ask them to have sex immediately. There must be some first courtship." One of the delicate aspects of network marketing is that people use their personal relationships to sell a product. While doing some leverage sick people, the success of network marketing shows that many people build great relationships Multiplex: Their friends are their customers, and vice versa. Gently, you can do the same all thing.Not prospettivaUn is a mistake to do some network marketers, like many other sellers Thursday and marketing, is thinking about everyone they meet as a prospect. In network marketing, this is known as the "Three-Foot Rule", which anyone within three feet of you is a prospect. But the network marketing best not to. Max Steingart, creator of the course "Online Success" training for network marketing, says that not only have to understand when to make your pitch, but even if you make your pitch. "Just build relationships with a lot of people. A will and a little 'do not become prospects," he says. "There is no timetable. If the time is right, you'll know." Use networks on-lineL'industria network marketing is a particularly good to take advantage of online networks. Steingart teaches people how to "make the world your warm market", especially through online networks. He relates that when he instant-messages to someone starting a conversation about potentially joining its network of distribution, 50% of people who answer the call contacts. Increasingly, sales and marketing professionals who use online networks to accelerate their traditional activities sales.What else can you learn from best practices of network marketing success? We welcome your comments and feedback. [ABSTRACT] network marketing or multi-level marketing, is one of the fastest growing business models in recent decades. Between 1993 and 2003, total sales increased in direct sales, sales by 7.1% per annum, significantly above the rate of economic growth -. And the total retail sales (direct sales, according to the Association), the most important examples of the direct selling company Amway include Avon, Mary Kay, Nu Skin, and Herbalife, which recently made public. In 2003, total revenues, direct sales over 29 billion dollars, or about 1% in the $ 3397 billion € for the total retail sales in the United States (U.S. Census Bureau). Any business model that has achieved this kind of success probably has lessons that all business processes, people can learn. It defines this family of business models as a method of distribution in which the people for sales people who have taken in the distribution generated will be paid. Are 20% of American adults now reports (6%) or were (14%) a representative of the direct selling - ". Sell consumer products or services from person to person, away from a fixed retail location" defined as the 2000, 55% of American adults who reported at some point, are the goods or services purchased by a direct sales company representative.A significant number of negative experiences with network marketing industry. That's because 70% of the people I've ever seen a sales representative is no longer live in the area. For the purposes of this column will not go into the challenges and problems in the network marketing model. There are many websites for all work on this we topic.We. Gone are the days when a "Company Man" - your career is your business. Multi-level marketing does just that explicit. But one of the things that makes the sector more attractive, the low barrier to entry, creates some of its greatest dangers. Many people get into it without the skills necessary to be able to run a successful business.we mainly interested in what all the business lessons to learn from successful practices of network marketing. We recently interviewed some of the leading experts in the field and found seven lessons that can all sales and marketing professionals to be effective, regardless of their field: Every company has a relationship based on John Milton Fogg says GeschäftsprozesseSo, founder and director of the Times network, author of The Greatest Networker in the world, and a master's most successful network marketing. You can not sell an inferior product with a higher ratio, but it takes at least a functional relationship in order to sell your product. This is particularly evident in multi-level marketing, an area around the belly belly sales.Think analytically network aufgebautShaul Gabbay, in his book capital in the creation of financial capital: the case of Network Marketing, said that the faster group of entrepreneurs [of direct representatives, who studied] who have had initial ties to dense networks were weak. In other words, successful salespeople penetrate an untapped market and then develop a market share in this market to win. It 's easier to achieve if this untapped market is very tight and everyone knows all the players. Why? Because the mouth is in this type of network spread faster than the value of your product or service. This principle is particularly evident in the network marketing industry, a sector, "the networks go to work." In However, the same idea applies to almost all business.Create a community around the product is one of the great ironies of the software industry that not only many software companies are developing their business away from the shore, outsource many of their customers to support their customers! When the best software to display the user forums to discuss your problems with the law encourages use! Software that support a very economical way to better their product. Multi-level marketing companies rely almost exclusively on their communities for sales, support, follow-up, and the year was 2002 recruiting.Leverage ungehebeltIm 79.9% in sales of women's direct marketing. 56% have completed only part of a diploma or a vocational technical school, or have only a high school diploma. This field looks very different from the traditional American enterprise sales force, usually much more masculine and has a level of education. However, the direct sales staff will be exactly like their customers. People can be very effective sales personnel to sell their own communities, because the common culture and interests of a foundation to build strong relationships lead to greater quickly.Build a first report "Internet marketing and network marketing joint disease we have an incurable, "says Fogg. "When you think the whole process, like dating, bringing someone to our site, and then ask them to have sex immediately. Must be the first courtship." One of the most critical aspects of network marketing is that people are using their personal relationships to sell a product. Even if the lever makes some people uncomfortable, demonstrates the success of network marketing that many people easily build relationships Multiplex: their friends, their customers, and vice versa. With tenderness, you can make the same mistakes is a thing.Not AussichtEin, some network marketers, like many other retailers and marketers is to think of everyone they meet as a prospect. In network marketing, this is called the "three-foot rule", ie, anyone within three feet of you is a perspective known. But the best network marketers do not. Max Steingart, the creator of "Success Online" training for network marketing, says that it is not only to discover, when you make your pitch, but if you take your parking space. "Just build relationships in a lot of people. Some become prospects and others do not," he says. "There is no timetable. When the time is right will, you know." The use is consistent NetzwerkeDas of network marketing for a particularly good use of online networks. Steingart teaches people how to "make the world your warm market", particularly through the use of online networks. He says that if someone Instant Message to start a conversation about the potential of making its network, 50% of people responding to his contacts with the conversation. Increasingly, sales and marketing professionals use online networks to accelerate their sales.What otherwise traditional societies the best practices of successful network marketers learn? We welcome your comments and feedback.