What is Network Marketing?
Network marketing is also called multilevel marketing (MLM) or direct selling. Network marketing companies are businesses that use a strategy of recruiting new distributors and selling them products, services, or both to earn commissions. The concept of network marketing is not new. In fact, the oldest form of network marketing dates back to the 1600s when companies such as Procter & Gamble were founded as a result of door-to-door salesmen selling products directly to the consumer. When you think about it, this is really no different than what we do today – except we don’t use door-to-door salespeople. We use social media and Facebook ads instead! It is related to social networks and internet marketing because they promote products using their friends’ social networks.
Network marketing is a business model that exploits the opportunity to earn income through the sales of multiple products, services, or subscriptions. To create a network of distributors who will generate an ongoing flow of revenue by selling your product lines, you’ll need a strong compensation plan and a powerful incentive system based on performance. Network marketing is a way of doing business where small businesses are owned and operated by an individual or group. There are no employees but there may be some contractors. The idea is to develop your own business while also helping others build their businesses for financial gain.
Network Marketing in India
Still, now, network marketing has not been able to grow as much in the Indian market as it has grown in the UK and US markets. There is a reason for that. Compared to the current time of 2021, a few years back, when the craze of the internet and social media was just taking a huge place in the business industry as a marketing strategy, the rate of scams and business frauds started to increase. Individuals are using social media and other networking sites for entertainment, but when it comes to product marketing through networking, people still have some trust issues associated with that. For instance, if the product is authentic; what of the marketers are frauds and take money by scamming and many others. Due to all these reasons, even when some authentic network marketing takes place in the Indian market, the success rate is quite questionable.
However, currently in 2021, the trend of network marketing is increasing and individuals have started to believe in it. Companies and brands are providing enough safety and security procedures for gaining the trust of the consumers and offering proper authentication certificates for the products so that consumers can have complete trust in the company and products. If done with proper techniques by implementing effective strategies, network marketing would be one of the most efficient and cost-effective marketing strategies for the companies. Many brands have gained their marketplace in India by using network marketing. Here are the top 10 network marketing companies in the Indian market.
- DXN India
- Forever Living
- Safe Shop
- Mi Lifestyle Marketing Global Private Limited
Network Marketing Strategies
To execute an effective network marketing operation, it is very important to have in-depth knowledge regarding the market. Without knowing all information and data regarding the market, it will be like firing a bullet without any aim. It will be a complete disaster. It is very significant for a marketer to gain deep insights regarding the market based on variables such as economy, politics, social, technology, environment and law. Having a proper understanding of all these factors is highly beneficial for a marketer. Not every market has the same condition, depending on the location it changes rapidly. Therefore, conducting an effective market analysis is mandatory for marketing.
Identify Target Market
Market analysis will help to understand the current trends of the market associated with various businesses, but another important factor for network marketing is to understand the consumer demand and requirements. Associating the current market trend along with the customer demand and requirements is a core preparation task for marketers. It is important to identify which age group or sex will be appropriate as a target market. This way marketers will be able to narrow down a wide market and it will help to focus only on a particular target for the marketing. It will make the target marketing more efficient and the success rate would be high. It also helps to understand the personalized demand of the segmented targeted customers as per their age and sex.
Effective Product Description
Only stating what is the product and the basic use of the product is not good enough for network marketing. Marketers have to be detailed about every aspect of the product. As stated before, people in the Indian market are still not huge fans of network marketing due to trust issues. Therefore, it is mandatory to put every little extra effort when it comes to representing the product to the target market. First, visualization is very important. Showing high-quality pictures and videos of the authentic product should be the topmost priority. The second is providing every detail of the product to the customers. For instance, why people should buy it; core raw materials of the product; authentication of the product; guarantee of security for purchasing the product, and every other detail should be there during representation of the product.
Use Efficient Network But Not All
Network marketing, the name itself is stating that networking and social connection are quite important for this marketing strategy. Therefore, it is very important to use all available networks but still not all. Most of the time it has been observed that the family members, friends, and other closed ones get overwhelmed with all the advertising and marketing which can develop a negative impact. Thus, just because they are easily available, do not overwhelm them with extra advertising. The same goes for everyone. Maintaining a proper frequency is important but not too much.