Is There A Difference Between Network Marketing And MLM?
Network marketing is a marketing variant characterized by the promotion of a product or service through other businesses or individuals. In many cases, network marketing represents a strategy included in the traditional marketing forms. It basically relies on word of mouth, but things have got a lot more complex than that these days. Another word used to describe this advertising model is multi-level marketing, although the concept is not identical with network marketing.
A company can use network marketing as one strategy among many others to promote products. This is the case when the marketing steps rely on the activity of various individuals in the network. Just think how well social networks serve for this purpose. Companies make huge profit every year through ‘refer-a-friend’ programs. Thus, a commission or a bonus is granted to a customer that generates a referral. The referral also receives an incentive for signing up and the program extends progressively.
With network marketing, a marketer does not make money based on what his/her referrals sell as it happens in the pyramidal system of multi-level marketing. This is where the concepts differ most. There are very many companies that consider network marketing a good strategy and use it in parallel with other tactics to reach a wider range of consumers. Even so, careful planning is required all the time. This system very much resembles affiliate programs, which are more legitimate than pyramidal systems.
It is important to carefully look into what you get within such systems. Network marketing is usually a good approach to development in medium and large companies. Corporations rely on it extensively, even if things are a bit different for small businesses. Home investors can also try network marketing and with fair chances of success. Let’s say that you have just opened a beauty parlor and you want to get more clients.
It is said that one satisfied client brings other ten prospects. Your business will improve considerably if you offer discounts to clients for referring your business to their friends, not to mention that you’ll thus save on advertising. Make sure that your services are high quality or you don’t have what to offer. An unhappy client will not return, and he/she will certainly not refer someone back to you. Learn a few things about network marketing and then see how this strategy can be implemented in your business vision and approach.
Randy Disert is a network marketing expert who will share with you his MLM secrets to success so that you can have success as well.