Looking for types of network marketing in India? Then you came to the right place. Here I have explained network marketing types in detail to help to understand what it is and how its types cause-effect in different scenarios.
In recent years there has been a trend towards network marketing, which is a business that promises to generate a good income for the person who enters the business and over time financial independence.
Multilevel marketing, network marketing, or MLM is a business model and product distribution by which independent or distributors networkers, may be associated with other distributors and earn commissions by the movement of such products or services within your network. In this way, common distributors have the opportunity to build a multi-level deep for-profit organization that may have hundreds or even thousands of members.
The marketing network allows you to be your own entrepreneur, the earnings and the final results depend on what you execute, usually, when you start in this type of business you start with family, friends, acquaintances and thus it expands the business. It is interesting to discover the various types of products that these types of companies offer and although there are many network marketing companies for years, the growth of them combined with the use of the internet and other means of dissemination is enormous, marketing networks It is an industry that has grown steadily for 20 years and has leaped upward over the last 10 years.
Types of Network Marketing in India
Multilevel marketing is classified according to the type of compensation that is generated in each company, these can be direct sales, network marketing, or marketing networks. A company’s multi-level compensation plans must specifically contain the amount of work that a distributor performs for them to receive commission payments.
Each compensation plan has its advantages and disadvantages. If the Unilevel or Forced Matrix is used or the binary plan network marketing or those that use both forms have different profit margins when they sell the products and because of how they distribute them among their sellers, always following a series of norms or rules that are within the compensation plan.
Each company must design that profit margin in a balanced way to be able to sustain itself over time; If the commissions are low then there is no motivation for the sales force (salespeople) and the company does not survive without salespeople. If the profit margin is excessive, the distributors and the company may have many profits over a period of time, but the customers who are retailers are the ones who will pay for the excess of the commissions when they buy a retail product, resulting in that the business cannot persist over time.
Salesforce margins are distributed through the structure and rules of the compensation plan. The structure gives the specifications of the regulations with which each sales distributor can be located within the organization of the company, the rules are those that establish how to work to compensate each of the members of the sales team. sales according to the position they occupy, their effort at work, and their position in the structure.
For each plan established in the compensation network, the following must be known:
- Know how the structure and the basic characteristics of each plan are.
- Know the rules of the company and how it is organized, in addition to knowing how the compensation is for sales.
- Know the strengths and weaknesses of the compensation plan. It must also be defined if it is easy to explain and if it is easily understood.
- Determine what the structure and sales require to make a profit.
- Know how you can upgrade within the structure
- Know what the requirements are and what you must have in capacities so that you can improve within the compensation plan.
- Carry a defined orientation of the business model or type that is established in the compensation plan.
Knowing and being clear on each of these plan topics is what will help you determine if you have an opportunity to establish a business with the company, and thus adjust the plan to the needs that suit you. In summary, we have four forms of compensation plans that are used in multilevel marketing: the tiered or break, the unilevel, the binary compensation, and the matrix or forced matrix.
Why join Network Marketing?
Among the reasons why people decide to enter the multilevel marketing business is usually because they want to achieve financial freedom, own their own time, want to be their own boss, or want to be entrepreneurs and feel independence.
This is a business that you can start in your home with your family. Develop it without the need for experience and with few operating expenses. Also, other reasons why many enter the business is the same economic situation that leads them to seek new alternatives to generate income. This is where the advantages of choosing a network marketing to start your own business come into play:
- First of all, it requires a low investment. The initial investment to enter a network marketing is almost always minimal.
- It has no operating costs. In a Network Marketing business you don’t have employees, payroll, you don’t have to pay for
- In a Marketing Network, you usually have a work team from the first day you decide to join.
- You can do this business in parallel to your job
- No specialized study is required to enter the business
- The time that you decide to have for the business is under your consideration.
This is because in network marketing there is a very important term called “leverage”. This basically means that you can rely on other people’s time since the payment system in a marketing network allows you to generate income from the work done by your referrals, downlines that are the people you have incorporated into your business.
The interesting thing about leverage in network marketing is that you can get what you want if you help others to get everything they want, that is, your success depends largely on the success of others; since in marketing networks you earn by helping other people to grow, a fact that represents a great difference concerning “traditional employment”.
However, as in every business, some defend it and the detractors, the latter considers that the marketing networks are many a fraud since they sell you the idea that you are going to get money quickly, easily and without having They have to work hard for it, this is large because not all the people who enter this type of business, manage to be successful and many actually leave shortly after they enter, besides, the concept that anyone can do has been oversold a lucrative business by entering a network marketing.
But the reality of the multilevel marketing business is that it is neither easy nor more difficult than any other business you plan to do. The odds of being successful are largely the same as in any other business. According to experts, multilevel businesses are an excellent option to start your own business, with a minimum investment and if you develop the business correctly, your profitability and income can be higher than what you can get in any other type of business.
Basic Characteristics of Multilevel Businesses or Network Marketing
- Employment relationship: Multilevel companies do not establish a worker-employer relationship with the independent distributor;
Therefore, the latter is not an employee of the company and is not obliged to comply with working hours, nor to answer to a “boss”.
- Income Limits: Generally, there is no income floor or ceiling. This means that the limit of economic benefits is set by the same Independent distributor.
- Investments: An Independent Distributor does not need to invest in infrastructure, nor does he assume the payroll of the employees who participate in administrative tasks, nor does he risk all the capital that is necessary to set up a large company; therefore, you can start your business with a minimal investment.
- The work system: The Independent Distributor benefits from the system created; that is, of the entire administrative structure, logistics, billing, which saves you time and effort.
In multilevel marketing businesses, there are various ways to earn whether you associate people to your network, have consumers of the products you offer, or simply by making them know the product you sell. Network marketing is an intelligent option to consume: “You consume a product or service, you recommend others to do the same and for that service to the company, benefits are generated in which you are a participant.