Where Do We Begin?

Welcome back to the NetworkingEagle. If you have any interest in Direct Sales or Network Marketing, I hope you will consider subscribing to this blog. Feel free to share the content with whomever you wish.

Once again, the purpose of this blog is to communicate, dialogue, even debate some of the pros and cons of Direct Sales and Network Marketing business models with the goal to educate, elevate and inspire others to soar like eagles. I will be attempting to bring reasonable views from both camps, those raving fans of Network Marketing and those who are anything but fans of this business model. In my first post, "Eagles Fly", I clearly made my confession. I am a Network Marketing Professional and proud to call myself such. Nevertheless, it is absolutely crucial that voices be heard and truth be taught regarding these business structures.

Traditional Sales:

Traditional business models with commission sales offer the sales person either straight commission, commission and salary or just salary. In all cases the sales person is tied to the company, either as an employee or an independent rep.  Assigning a rep to a specific territory is a common practice for companies marketing their products to particular industries.  This offers the representative an advantage of exclusivity. It also gives the company jurisdiction over who and how their product was to be presented and sold. If the product is a hot item selling at retail, salespeople will stand in line to throw their hats into the ring. If the product is new and just getting started, the company will woo the professional sales person with the best reputation and connections to help get that product off the ground. Many times the commission rate will be notably higher to provide incentive for a professional to take on that product. Given a stable company with an excellent product, straight commission offers a lucrative income. 


What is the primary difference between Network Marketing and Direct Sales?: 

Network Marketing and Direct Sales are business models similar to the traditional model mentioned above in that they both involve products, sales and customers. This is where the similarities stop. Network Marketing  involves building a team or organization as well as a customer base. A reputable network marketing company will have a great product or products, be fiscally sound,  and have excellent leadership. Most of the time, commission is paid along with bonuses. Most products sold under this model are consumables. Health supplements, household supplies, cosmetics are just a few of the products you will find in these companies. Compensation plans vary from company to company and it is wise to completely understand a given plan before joining that company, no matter how great the product.

The primary difference between Network Marketing companies and Direct Sales companies is payment of residual income. Residual income is leveraged income, the kind of income one receives by doing something once or twice and being paid for it over and over again. I sell products that my customers reorder over and over again, which results in continued commissions being paid. What is more, those that I have mentored in the business, as they build their business, I receive residual income from their organization as well.

Direct Sales companies usually sell more durables, such as cookware, water softeners, etc. However there are many so-called direct selling companies that offer residual in its various forms and many are truly Network Marketing companies. The focus is key. If the product is a vacuum, air purifier, cookware, etc, more than likely the commission structure is going to be higher to the sale person and any residual income, if offered, is going to be a very low rate. This is simply because the turnover of this product is going to be less per consumer than a product like shampoo and laundry soap.

 As always... your comments and suggestions are welcomed. Until next time...!

Eagles Fly....

"Eagles fly...they always focus on their goal,
Fly or die, it is how they live and how they roll."  Kody Bateman

Welcome to the Networking Eagle. A little self disclosure here... I am hooked on Network Marketing. The whole concept of word of mouth marketing intrigues me. There is something so very honest about the whole structure... After all,  is not word of mouth the most effective way to obtain good information about products and services?  Not to mention that historically it is where all good business begins. Think about it.

I grew up in the 1950's, Happy Days right? With the risk of sounding a bit naive, it was very Happy-Days-like. My childhood thrived in a small town in Los Angeles County, where my parents knew everyone and everyone knew them. My father sat on the city council, my mother was the president of the PTA, the local Women's Club, and active at the church. We shopped in town. When there was a product or service that out did itself, everyone knew about and flocked to buy the product or use the service. The opposite was true as well. Certain death was the sentence to the product or service that was ineffective, or had the slightest hint of ill-will.

My point is that people have always listened to people and they always will, that is if people are communicating. The Internet, as crazy as it sounds, has brought back good ol' fashion people-to-people communication! (Look at us, we are communicating, that is if you are reading this blog!) Tweets, posts, chats, texts, etc... All of this amounts to word of mouth affirmation, confirmation or defamation. I tend to go to movies on friends recommendations over reviewers, however, I have come to trust some of the movie critics out there. Restaurants aptly get my initial visit on the recommendation of someone I know, like and trust. Consequently, I find myself going to the Internet, and if I find a fair percentage of positive reviews on a restaurant or movie, I will try that particular establishment first.

What does this mean to businesses? Is it still necessary to spend millions of dollars on TV or print advertising? I don't think so. No longer is the Ad-Man necessary, at least not the Ad-Man of the days gone by. More and more businesses are seeing the benefit of the Network Marketing model for their product or service. Rather than pay a large corporation for advertising and marketing campaigns, why not pay a raving fan for trying, loving and sharing your product or service. This is the very essence of direct sales, network and affiliate marketing business models.

What does this mean to the 'RAVING FAN'? Probably the most impressive is the financial freedom this can bring. I am not talking about instant wealth or get-rich-quick schemes. I am talking about potential wealth to those individuals who are independent, hard-working, self-starters, and teachable. There is no ceiling on what one can make. This is the only even playing field left!

We all have products or services that we have fallen in love with... we would use them no matter what, we are loyal to these particular businesses. They have provided "something" we are bound to tell others about for no other reason than we love the product and want to help find solutions for our friends, family, clients and customers. What if you were paid a dime for every time you have recommended a movie to someone? Netflix has 25 million subscribers. How about a dollar for every book you recommended? Amazon has put Barnes and Noble and Borders out of business. I heard about both of these businesses from others, people who I know, like and trust, people who became Raving Fans!

In closing, if you are one of those who have a prejudice against Network Marketing models of business, or you think they are  all "pyramid schemes", I ask you to rethink your position, open your mind to the possibilities of starting your own or even a second business with a product that is marketed in this way. I am especially speaking to the college student. This is an excellent way to supplement your income as you are becoming  what you are going to be when you grow up! (I am still trying to figure that out.)

This blog is dedicated to the Network Marketing model, to dialogue and discussion of the pros and cons of this industry and to educating others about the ability to soar financially and grow personally into all one can be! Your comments are welcomed!   Sandra Bandfield