What,network,marketing,Revised DIY What is network marketing - Revised ?


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Networkmarketing utilizes an internetwork of representatives to reach customers oforganizations that the normal representatives would not have reached. The wholeprinciple works this way: A is a representative of company Q. B becomes a representativeof company Q through A and C also becomes a representation through B. Hierarchycomes in here, though A, B and C are all representative of Q, A is seen asbeing at a higher level than B and C. Innetwork marketing, commissions to representatives are not solely based onsales, but also on the level of the representative on the hierarchy. The rephere receives his own commission due plus commission on that of other repsunder him. Though some people criticize this marketing strategy, it is veryeffective in its own way.  Networkmarketing encourages existing reps to reach out to customers as well as focuson getting other reps on board. More reps means more customers will be reachedand so sales will increase, ultimately leading to an increase in profits. Becausethere are a lot of reps of the same company out there, each rep will workharder to maintain his customers. The other side of the coin however is that,reps will be focusing on getting other reps than customers. With this, even ifthey do not sell anything themselves, they are still sure of getting somecommission. This discourages hard work and the company suffers in the long run. Thecustomer benefits from this competition, in that, each rep will try to givemaximum satisfaction to his customers so they do not shift to the other reps. Theother side is that reps at the higher levels will neglect their customers,especially if they know the customers are no longer buying their products forthem to get commission. They will rather focus on pressuring the reps underthem to make more profit. Neglected customers may shift to alternative productson the market.  Networkmarketing must therefore be practiced with a lot of caution to ensure that noneof the above mentioned occur. Strict rules and measures should be put in placeso as to encourage hard work and customer care. One thing that could be donewould be to reduce the percentage of commission from reps under a rep and ratherincrease commissions on sales. This way, each rep would want to sell morerather than waiting for others to sell with them getting commission out of it.   Networkmarketing is gaining grounds now, especially in the financial sector, whereeach customer is seen as a rep and is expected to bring in new customers. Thecustomers at the higher level receive part of the interest on the savings ofthe customers they brought in, in addition to what they earn on their savings.Though this is illegal in some countries, it is widely accepted by a largesector of the customer base. Withthe improvement in internet services, online network marketing is graduallyreplacing the traditional network marketing.  For more information on NetworkMarketing, please visit my blog at http://www.annettapowellonline.com.   See you there! Yours Sincerely,Annetta PowellYour Professional Success Coach

What,network,marketing,Revised

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