In this article what I want to do is show you why I think having a network marketing business is big business. We will talk about why seniors should be involved if they are looking for a real business opportunity!
Already in an MLM business? If you change the way you’re viewing this business model, you will begin to have better results growing your business beyond where now is.
Network Marketing Business Model
Network marketing is a business model. It’s a relationship between a network marketing company and a network marketer.
In this business model products are distributed from the network marketing company either directly to a retail customer, or to a distributor. Often these products are stored in a regional distribution center and then distributed out into the marketplace from there.
This is no different from any business model. Major manufacturers such as Amana manufacture appliances in Amana, Iowa and get their products to the marketplace using this distribution process.
1. Products manufactured at a factory.
2. They are shipped to a regional distribution center (RDC) from the factory.
3. Ship products to a local distributor.
4. Products are shipped to a retail outlet for sale to the public, or the distributor picks them up at the RDC.
When I mention Amana refrigeration you think of this is a big business. Yet it’s interesting to me that multibillion dollar network marketing companies use the exact same distribution model.
The big difference is how the products get out into the public. Most product the public buys today is this way.
– Ordered on a website such as Amazon and shipped directly to them.
– The customer walks into a retail store and purchases them.
Network Marketing Retail Distribution
In network marketing customers can order directly from the network marketing company as well. They’re ordered on the website of a distributor who then gets credit for the sale.
This is great for the network marketing distributor because they do not have to do any customer fulfillment. This is great for baby boomers who are busy and do not want to deal directly with customers but want to earn more money.
Here is how customer fulfillment is handled today!
1. The customer orders the product from a distributor replicated website. A replicated website means all distributors have the same website.
The difference is each distributor’s website is coded with an identification number that identifies who the distributor is. This way that distributor gets credit for the sale and receives a commission for each sale.
2. Customer pays online on the distributor website.
3. The network marketing company ships the product directly to the customer and the distributor earns a commission on that sale.
4. Any customer service issues, refunds, and so on are handled by the network marketing company. This is another advantage to the network marketing distributor.
Products are not delivered directly to the customer much anymore. Even established companies such as Avon, who are identified by ding-dong Avon calling, do not ship to their distributors first. They ship customer direct like every other NWM company.
Again, this is a help to baby boomers who want to be involved in the networking part of network marketing and not so much on the product fulfillment side of the business.
When you sponsor a new distributor, you earn money on their purchases. They will order products at a discounted price for personal use. You earn money on this wholesale buy.
They will order products at the wholesale price and sell them at a retail markup. This price difference is their retail profit.
The wholesale buy still creates sales volume for your business. The larger these wholesale purchases the more money you will earn.
Wholesale distribution is the largest way to create a big network marketing business. The great thing is you do little in the way of making these wholesale purchases. All is handled by the network marketing company.
MLM Is Not A Pyramid Scheme
One misconception about multi-level marketing, also known as MLM, is the business model is a pyramid scheme. You can certainly see in the retail part of the business no pyramid scheme here.
Even if the distributor chooses to deliver products to the customer how the product makes it to the distributor is no different from most distribution methods. The confusion lies when a distributor attempts to develop a downline of their own.
This is handled by sponsoring new distributors on your front line, and then working in depth to help those distributors develop their own business. As long as everybody is retailing products, which the federal trade commission says is important, no pyramid scheme here.
Bypass Your Upline
Another key point in debunking the pyramid scheme misconception is the ability for downline distributors to bypass their upline and make more money than they do. In their compensation plan network marketing companies have levels that can be achieved as you grow your business.
As you advance in these different levels you earn more money based on bonuses paid for achieving them. There have been millions of examples of people joining a network marketing company long after they started.
They advance up the compensation plan to earn more than their sponsor, their upline. Some even make it to the top levels that can be achieved within the company.
This would be impossible in a pyramid scheme because the people making money would be the people at the top. The older the company is the more people on the bottom of the pyramid.
I know seniors have been involved in MLM in the past and may feel like they were in a pyramid scheme. You can be confident that is not the case today.
Everyone Starts At The Bottom
Seniors joining a network marketing company all start in the same place. How they progress is totally up to them.
In the old days of network marketing the failure rate was high. This was primarily due to the fact the business opportunity was hyped and oversold.
Also, the emphasis was on the dream of building a large business, quitting your job, traveling the world, and using your money how you wanted to use it. The problem was the average person in network marketing personally sponsored 2 people, and never had 10 customers at the retail level.
This is totally different today thanks to the Internet. Network marketing is a great business model for seniors because of how big your business can grow. Plus, you do it primarily online.
This is not to say that you won’t have interaction with your retail customers or people that you sponsor. The difference now is no door-to-door selling, and no in-home business meetings. You’re not doing circle meetings around a table or in front of a marker board.
The way your network marketing business is today is no different from how any business goes about using the Internet to grow.
How A Big Network Marketing Business Is Built Today
Network marketing businesses are being built. Some are growing thanks to Internet marketing.
Internet marketing has evolved as a catch all phrase to mean many things. At its core Internet marketing is the process of promoting a business or brand and its products or services over the internet using tools that help drive traffic, leads, and sales.
Senior network marketers are doing a great job to do all these. The good ones are building large MLM companies because of Internet marketing.
Here are some of the components of a BIG MLM business using the Internet!
1. Email marketing. Successful network marketers do email marketing by building a list and developing a relationship with their subscribers.
This is a long-term strategy for building a business asset that can result in new retail customers or new distributors for your business. An email list is always spitting out new prospects because people are ready to join you at different times.
Think of this as Top Of Mind Awareness (TOMA) marketing at its finest. You want to be their when they need you either for your products or for your business opportunity.
2. Retail first, sponsor second. Successful network marketers put as much emphasis on retailing products as they do on sponsoring new distributors. One of the reasons this is so successful is because the downline is able to emulate the upline.
Big network marketing businesses have retail profits because they know how important customers buying at that level. Retail profits can then be used in a variety of ways including investing some profits back into marketing on the Internet.
Marketing Is Important
3. Promotion methods. Any big business using the Internet is going to use a combination of marketing methods. These include….
A. Paid advertising. Purchasing ads on high-volume sites such as Google, Facebook, and so on.
B. Social media. Include social media marketing and setting up business pages on the top social sites.
You want to be on one or more of social networks including Facebook, Twitter, LinkedIn, Instagram, and Pinterest. Baby boomers can capitalize on their relationships with other seniors to find new customers and members to sponsor.
C. YouTube. Top network marketing distributors also have a presence on YouTube. They learn how to create YouTube videos to brand themselves as an expert in the network marketing niche.
D. Blogging. Another successful strategy is setting up a blog and using it to educate retail customers and new distributors. A blog can also be a place to add your YouTube videos, so the distributor has another method for marketing online.
More On Network Marketing Blogging
Network marketing blogging is good for retail and wholesale distribution. Blogging is a way to find new customers and prospects.
The best network marketers use their blog to inform people. This could be a training message to your downline. It might be an update on a product for sale.
Do a Google search for best network marketing blogs? Here is one at the top of the list, but it is not an MLM blog, but rather a site ranking network marketing blogs: Top 100 Network Marketing Blogs & Websites | MLM Blog.
This is great because it will show you different network marketing blogs you can use to get ideas for your own blog.
Another strategy is to look for company related MLM blogs. For example, do a Google search for “Best (insert your company name) Distributor Blogs” and have a look. Let’s use Amway as an example.
Best Amway Distributor Blogs will bring up all kinds of blogs to look at. You may have to go through pages to find the best blogs you can use as an example for your own new blog.
Blogging is fantastic because any senior can do it and can start a blog for under $20. All you need is….
1. Domain name. Cost $15 a year.
2. Hosting. As low as $5/month.
3. WordPress theme. Free.
4. Content. You write or hire a freelance blog writer.
Some network marketers write all their content, some write part of their content and outsource the rest, and some outsource all their blog content to a freelance writer.
However, you approach it blogging is a great way to show your own online presence. We have begun to see some great MLM blogs from seniors and baby boomers in the future.
High Quality Makes You Look Big!
Here is the thing about having a big network marketing business for most people. They do not look that successful at first because they are not that successful.
If you have been around network marketing in the past, you know the story. I know this guy, and he is making a million, and we can too!
My upline has been in for 6 months, and she is earning $10,000 a month. We can do this.
After a while when it doesn’t happen for you then you become another network marketing casualty due to unreasonable expectations.
Here is a better approach when it comes to sponsoring new distributors.
– Let your blog do the talking.
– Let your email list prove credibility.
– Your YouTube channel can make you famous.
When you are online you seem bigger than you are. You only have to use this to your advantage for a while.
Eventually you start writing about your own success. You make videos showing your checks.
You send out emails showing your list has over 1000 subscribers. And so on….
Do all this in high quality and you will make a big impression. People will flock to you naturally.
This is what is known as attraction marketing, and it works. It even works for the little guy because the Internet makes them look big!
What Is A Big Network Marketing Business?
I am almost done with this article. Thanks for reading along so far.
Now it is time to wind things down answering the real question. What is a big network marketing business and how can baby boomers get involved?
Amway’s Yager Group
Dexter Yager of Amway fame recently passed away. He was the largest Amway Distributor in the world.
Business For Home has the Yager Group at the top of all lifetime earners with total earnings of $460,000,000. They still earn over $7.2 Million a year.
That is a big network marketing business.
Big Is Relevant To Your Needs
99.9% of all network marketers will never be that big. The thing is it’s not necessary to be a millionaire network marketer to be considered having a big MLM business.
What is important is how big do you need to be to feel successful. Is it having 20 retail customers earning you $200-$500 a month in retail profit?
Is it sponsoring 3 on your frontline and building a downline of 100 members earning you $1000 a month?
Many would not consider that big, but you would! This is why network marketing is a thriving and growing business model on the Internet today for boomers.
Seniors all over the world are establishing their own definition of BIG and successful. Nothing else matters because this is doable for you.
Top Network Marketing Companies
Network marketing is exploding all over the world. Business for home has a list of the Top 500 Direct Sales Companies in 2018 on their website.
Amway continues to lead the way with annual revenue of $8.8 Billion which is up 2% over 2017. Following behind in second place is Avon at over $5.5 Billion, but they continue to slide down 3% from 2017.
All 7 of the Top 10 companies saw an increase in revenue and 10 out of the Top 15 were up in sales in 2018 over 2017. Most of the Top 500 directs sales companies are big network marketing businesses, so the opportunities are there to find one you are interested in.
Summary: Having A Network Marketing Business Is Big Business – Here’s Why!
I read on Quora annual sales in network marketing are estimated to be $170 Billion a year.
We are way beyond questioning whether network marketing is a practical business model!
When you start your own network marketing business you are in a big industry. You can present yourself as being big almost at once with a blog and YouTube Channel.
As you build your own email list your credibility will grow. As you get your own retail customers your income will begin growing. This can happen quickly too!
Showing your downline what you are doing can happen thanks to the Internet. all this is possible because having a network marketing business of your own is BIG business. This is true for seniors who decide to get involved and build a real business of their own.
Is network marketing a big industry?
Network marketing is a big industry. Spanning the globe, network marketing companies have tens of millions of independent distributors selling their products. This industry also provides an opportunity for people to start their own business with a low investment and the potential to earn a good income.
Network marketing companies have strict rules about how their products can be marketed, and distributors must abide by these rules. Because of this, network marketing is often seen as a reputable and reliable way to do business.
Network marketing companies are also required to provide training and support to their distributors, which helps to ensure that the products are marketed correctly and that people understand how to use them properly. As a result, network marketing provides a great opportunity for people to start their own business and make a good income.
Is network marketing a good business?
Network marketing is a business in which companies distribute products through a network of independent contractors. Network marketing is sometimes also referred to as direct sales or multilevel marketing.
Network marketing is a good business for many people because it offers the opportunity to be your own boss, set your own hours, and work from home. network marketing is also a good way to make money. Network marketing companies often offer generous commissions and bonuses, and many people are able to earn a good income through network marketing.
However, network marketing is not for everyone. Some people find that they do not like working with people or selling products, and they may not be successful in network marketing.
Additionally, network marketing requires a lot of time and effort. Some people may not be willing or able to put in the work required to succeed.
Which is the biggest company in network marketing?
Network marketing is a type of business in which companies use independent contractors to sell their products and services. These independent contractors are typically network marketers, who earn a commission for every product or service they sell.
Network marketing is a popular way for companies to promote their products and services. It allows them to reach a large audience without incurring the costs of traditional advertising.
The biggest company in network marketing is Amway, which was founded in 1959. Amway is a direct-selling company that sells a variety of products, including health and beauty products, home care products, and nutraceuticals. Amway operates in more than 100 countries and has a network of more than 3 million independent contractors.
The network marketing model has been used by some of the biggest companies in the world, including Amway, Mary Kay, and Herbalife. These companies have all been successful thanks to their ability to tap into a wide network of potential customers.
However, network marketing is not without its critics. Some argue that the model is nothing more than a pyramid scheme, and that it relies on recruits to constantly bring in new customers in order to be successful.
Whether you love it or hate it, there’s no denying that network marketing can be a very effective way to sell products and services. And for that reason, it’s likely that the biggest network marketing company in the world is still yet to be determined.