Network Marketing
THE STORY OF THE BARBER
I have a barber that does very good cuts and he’s been cutting my hair for over three years now. Every time he gives me a cut and I meet a friend they seem to like the cut on me and want to try him out. The good news is, he does home service and they can just give him a call. He had this small shop back then and he was alone in his business. My friends who gave him a call enjoyed his services and have equally invited referred him to their own friends as well. I realized that even my business associates who dared to ask me where I cut my hair patronize him every time they are in town together with their own colleges and associates. Today, I can’t say he has a bigger shop, because what he has could be called a big office not a shop. He has diversified and made the office accommodate both sex, he has a chain of staff all of whom call him Sir, he drives a good car and lives in a house of his own. After many years even I have not achieved so much. Know this, that without being under any obligation to tell my friends about him, I did and today he is better for it. Equally note that, I did not mention him to all my friends not even most of my friends. I would have done so and even tell more people if I was being given some commission for doing so and I’m sure a lot of us are like me
THE SALES REPRESENTATIVE
A sales representative or the marketing executive as we all know, in the world today is paid a basic salary in some cases and commission on sales. These commissions as I discovered however are only based on direct sales. This means that if the marketing executive makes a sale to Mr A he gets commissions on sales made to Mr A. However if Mr A tell anybody about the product, say Mr B and Mr B buys directly from the company. The commission on such sales is not credited to Mr A and neither is it credited to the marketing executive except there is a network marketing arrangement.
THE NETWORK MARKETER
Multi-level marketing (MLM), also known as Network Marketing, is a marketing strategy that compensates promoters of direct selling companies not only for product sales they personally generate, but also for the sales of others they introduced to the company. The products and company are usually marketed directly to consumers and potential business partners by means of relationship referrals and word of mouth marketing.[1].
Independent, unsalaried salespeople of multi-level marketing, referred to as distributors (or associates, independent business owners, dealers, franchise owners, sales consultants, consultants, independent agents, etc.), represent the parent company and are awarded a commission based upon the volume of product sold through each of their independent businesses (organizations).
Independent distributors develop their organizations by either building an active customer base, who buy direct from the parent company, or by recruiting a downline of independent distributors who also build a customer base, thereby expanding the overall organization. Additionally, distributors can also earn a profit by retailing products they purchased from the parent company at wholesale price.
Distributors earn a commission based on the sales efforts of their organization, which includes their independent sale efforts as well as the leveraged sales efforts of their downline. This arrangement is similar to franchise arrangements where royalties are paid from the sales of individual franchise operations to the franchisor as well as to an area or region manager. Commissions are paid to multi-level marketing distributors according to the company’s compensation plan. There can be multiple levels of people receiving royalties from one person’s sales.
Examples of products in Nigeria that have a built in network marketing model include
IFA – Independent Field Advertisers: The product is Life Assurance
Holidays and Cash: The product is vacation travels
Questnet: The product is an energizing disc called Biodisc
Freedomrocks: The product is support services for Forex trading
Each with it’s own unique model having its own different reward system. I will break them down soon however, if you need to reach me please send your mails to imagesbyola@gmail.com
You may also follow the link below
This Link leads people to where they download a pdf and get a few mails that tune their minds to the possibilities in NM.
This link leads people to book a seat at our business opportunity meetings and seminars. This one get’s them booked for the meeting and conversion happens faster. You can share this link with some of your referrals as well so that they can use it too.
Please note that we will soon start charging for these meetings.


April 24th, 2009 at 10:26 am
Great story and great advice, thank you for sharing!!