Network Marketing Explained
Network marketing, also known as multi-level marketing (MLM), is an efficient and cost-effective business model that relies on a network of people to build a business. It is an attractive way for entrepreneurs to create their own successful business by marketing products or services and recruiting new members to join the team. The main idea behind network marketing is that each person involved can earn an honest income not just from his own sales, but also from the sales of the people they recruit in, making it a realistic way to create long term passive income. With its simple structure and low start-up costs, network marketing is an equaliser that allows anyone, regardless of background and qualification, to start an organic business and build it over time into a multi-national network enterprise. While it’s easy to get started, the fact remains that most people do not have prior experience in running a business. Becoming a network entrepreneur requires the right mindset and skillsets to succeed. Therefore, what sets a truly good network marketing organisation apart is whether it offers a comprehensive distributor training and mentorship program. Network marketing is a team sport that thrives on an apprenticeship system of Learn-Do-Teach-Duplicate. That is the very foundation that the Avita Network Marketing business is built on.
Dispelling Common Myths of Network Marketing (or MLM)
For each myth, click to learn more from MLM guru Tim Sales.
MLM is an illegal pyramid scheme
While MLMs share some characteristics with pyramid schemes, they are not the same thing. Pyramid schemes are illegal and rely on recruitment rather than the sale of products or services to generate income. Products offered by pyramid schemes are often of dubious value with no regular consumption; they serve only as a means for people to enter the illegitimate scheme. MLMs, on the other hand, focus on the sale of products or services and only offer commissions on sales. MLM products offer real values to a regular consumer base.
MLM products are overpriced
MLM business relies on personal recommendation to be successful. Distributors will not risk their reputation by recommending poor quality products even if they are underpriced. This is why MLM products are produced with higher quality ingredients and unique formulas, thus justifying a higher price point. Moreover, the compensation plan allows customers and distributors to enjoy discounts and incentives to offset any perceived higher cost.
Only the people at the top make money
This is not true. MLM compensation plans are designed to reward distributors for selling products, recruiting new members and training them to become an effective distribution network. Distributors can earn commissions on their sales and the sales of their downlines, which means that anyone can make money in MLM, regardless of their position in the organization. More importantly, MLM provides everyone an equal opportunity to grow a large downline organisation and thus be at the top.
MLM is a get-rich-quick scheme
Another common misconception about MLM is that it is a quick and easy way to make money. While it is possible to earn a significant income through an MLM, it takes hard work, time, and dedication to build a downline network of competent distributors and grow a sustainable customer base. MLM is not unlike any other business, success takes time, effort, and persistence. But unlike most traditional businesses, MLM offers the advantages of low start-up cost, no risk, low recurrent cost, no need for prior experience or qualification, and unlimited income potential. This is why MLM is an equaliser for all.
MLM is only for salespeople
MLM success involves building a network of distributors to promote and market products. While sales skills can be useful, success in MLM also requires leadership, communication, and relationship-building skills. Importantly, a good MLM company will offer training and support to help people from all backgrounds to develop themselves and succeed as leaders of their networks.
MLM is only for the extroverts
Contrary to popular belief, MLM is not a business model that solely relies on extroverted personalities. While being sociable and outgoing can be advantageous in this field, introverts can excel by leveraging their strengths, such as active listening, attention to detail, and strategic thinking. In fact, many successful MLM entrepreneurs are introverts who have learned to adapt their communication style and build relationships through their expertise and passion.
Network Marketing Gongfu
Tips from Avita Coaching Entrepreneurs
Traditional businesswoman Jinnie Uy from The Philippines recalls she was once anti-network marketing. Now, she is a MLM champion.
Mary Kwok’s success journey in Avita network marketing entrepreneurship encompasses continuous learning and growing.
Corporate executive turned MLM professional Gina Ilarde shares why she left her HR Director job for avita network marketing entrepreneurship.
TCM physician Germaine Goh shares how she expands from treating sick patients in her clinic to promoting wellness education globally.
While ANYONE can get started in network marketing, not EVERYONE has the traits needed to excel. Alvin Yong suggests assessing if you have the qualities of a successful network marketing entrepreneur.
Learn how to avoid common pitfalls made by new network marketers. Alvin Yong shares insights on the three fatal mistakes that rookies often make and offers advice on how to overcome them.