This latter model emerged with the arrival of social media and recommendation (or influencer) marketing. Rather than directly selling the products purchased from the brand (and on which they make a profit), the marketer will encourage consumers to buy their products directly from the company in question. Revenue therefore comes from sales made through your recommendations (tracked using a unique promo code, for example).
The advantages of network marketing
Network marketing offers many advantages for sellers:
- Low startup costs , as you algeria phone number library only need to invest in product samples (and often free marketing tools, such as email marketing software ) to encourage consumers to purchase. Gradually, sellers will be able to purchase larger inventories, recruit additional sellers, and thus increase their margins.
- Flexible operation that gives great freedom to entrepreneurs (workload, marketing strategy implemented, commercial objectives to be achieved, etc.);
The opportunity to develop commercial skills
- to interact directly with consumers the video should engage, not just show beautiful shots to better understand their needs, and therefore to gradually gain confidence (and even leadership for those who opt for MLM).
On the business side, the main reason companies opt for network marketing is that it’s a cost-effective way to market their products or services. It frees them from the responsibility of recruiting and training in-house sales representatives.
His recommendations are therefore more likely to encourage them to make a purchase since he better understands their needs, shares their points of view and presents himself as a user of the product/service he offers.
The disadvantages of network marketing
While this sales technique therefore sault data presents advantages for both parties (the seller and the network marketing company whose products/services he sells)
In fact, multi-level marketing is only legal in France if:
- Compensation comes from the sale of a product and not from recruiting another seller;