Network marketing opportunities might fall under several different business models. For example, there are sales distributorships, aka independent consultants that sell tangible products. This is probably the most well-known and there are a number of very successful mega-billion dollar corporations that are ‘household words’.
Encompassing both tangibles and intangibles, there are also multi-level marketing (MLM) businesses, which include many different online affiliate marketing programs. With this model people may earn money for referrals as well as by selling the product or service of the company to earn commissions.
The principal difference in the two business models above is that the distributorships focus on selling products, whereas MLM and affiliate marketing programs focus mainly on the business opportunity (referrals). Of course these referrals are made easier if the company has quality products and services and has a good reputation as a profitable opportunity for affiliates.
Participants in most network marketing opportunities are considered to be self-employed. This is an ideal situation because they can work for as many different companies as they prefer. The ‘multiple streams of income’ concept works very nicely in any case. Mainly this is due to the fact that there is no limit to how much money they can earn as there would be with an employee’s ‘salary’ or ‘wages’.
The other major reason having multiple streams of income is a very wise way to build a business, is that there can be a balance where if one company has slow sales for any period of time, it is not as detrimental to the bottom line in that the other companies may be doing fine or better.
Additionally, they do well with the concept of ‘multiple streams of income’ because you can technically earn money in multiple ways within each individual organization. With MLM and affiliate programs you can earn money from referrals as well as from selling the products. As you get more sophisticated you could actually have separate advertising that focuses on either.
With regard to any network marketing opportunities, take advantage of your associations in the various networks and use them wisely. You can “cross-promote” in your own organization or network by ‘back-end’ and ‘OTO’ (one-time-only) sales to your existing clients. That is once a customer buys your products or agrees to participate in a business opportunity you can invite them to follow you into some of your other opportunities.
Networking is always going to emphasize building relationships with people. Get to know your prospects and existing customers. Don’t ever be accused of ‘taking the money and run’ where they will say ‘I was very important until they got my money and now they have disappeared. I can’t get any help and at this point I just want a refund’. Stay in touch.
