Network Marketing is another form of direct marketing. It is primarily more interested in the organization of a sales network than by using the sale itself.
The networker mostly sets out to build up its own business before helping then other business partners to build their own, such as a franchisor.was ist network marketing
In difference to franchising where merely one company opens new branches, in Mlm each independent company owner can open new network businesses, though low financial investigations and without risk.
A networker undertakes the job to organize the network, to acquire paid for the sales qualified for bonus within that branch network.
Another feature of Mlm is to build up an transnational business by sponsoring international partners. Specifically in Europe, Network Marketing represents among the best examples how to make utilization of a single European market place. netzwerk marketing
A report from Prof. Dr. Michael Zacharias, University Worms, in 1996 indicates, that the total revenue in Germany stated in Network Marketing is still minimal (approx. 300 million EUR p.a.), but it'll be fast-paced.
In the Ukraine the market has just started (Nov. 2003), as well as the market in Russia will become 2004 too. So during these countries we will see incredible and surpassing business growth in the next years. If you are from the Ukraine or Russia, or else you know people from there, then you can directly benefit from it. You can offer them a chance to build their own business.
It was just an example, there are far more exciting success stories from other countries as well, e.g. Sweden, Korea etc., and the opportunity is identical in all of the supported countries.
In Europe the Network Marketing business is still in its infancy. Only 0.7% of trading are made with Network Marketing.
Which means this distribution channel includes a huge potential for growth in future all over the world.
These Pillars of Success in Multilevel marketing are:
1) Re-occurring income
2) Leverage (of energy and Money)
Network Marketing, 'MLM', and Multi Level Marketing are common terms that reference the same type of business model. Although close-minded people outside the industry (while others who've tried it without success), have biased or negative wrong impressions, and though it is used and abused by a lot of crooks and con-artists, this business model has exceptional performance potential.
You will find bad apples in every bunch, and this industry has greater than it's share. But it can produce outstanding results once you learn how to find the right company. And to maximize your potential, there are several simple concepts whose understanding is crucial to your success.
Unlike franchises or conventional businesses, Mlm, MLM, and Multi-level marketing are the only business models that take advantage of all three in the important, yet misunderstood principles of:
Passive Recurring income - Leverage - and Geometric Growth.
As well as the combination of all three of these elements is the thing that gives the Network Marketing business model it's synergy and exceptional performance potential. Actually one outstanding company I'm conscious of has actually built designed synergy within their business model.
Whether it's a franchise or conventional business, both require major investments of time and money, and special skills should you hope to be really successful. Even relatively small percentage who achieve true success usually take years just to break even.
Alternatively, with the advent and popularity of the Internet and also the rampant quest to "Get Rich Quick for Doing Nothing", many people have gotten all excited about affiliate, associate, referral, or co-op programs since they are sometimes called. But few of the thousands of these being promoted have real chance of creating any significant money for your vast majority of people who join up.
A perfect example can be an email that was recently coming from one of these programs who tell you he is 'the best'. They bragged them to be paying "over $400,000 in commissions month after month!" and have "now grown to over 650,000 affiliates!"
Those are interesting statistics some might get excited about. Let's see... when they are true... They're paying an 'average' of $.61 per affiliate... That's sixty one cents! Wow! How do you like to retire with that?!
They claim later of their letter that some are making $10,000 monthly. If that's true, then to generate an 'average' of sixty one cents each, the vast majority have to be making almost nothing.
There is a much better method to achieve your dreams!