Monday, 18 November 2013

Network Marketing Explained: A Growing Industry

Network marketing has become a big phenomenon within the marketing industry. It is significantly newer than some other more renowned forms of marketing but just as effective.  Many companies worldwide have adopted this method of marketing because of this. Network marketing has meant that companies can expand into different cities as well as countries a lot more quickly than your conventional organisation.  

The reasons why network marketing is so successful is because each company employing this strategy has some of the best, most valuable set of motivation and people management skills. Not only this, network marketing allows the opportunity to progress within the organisation rapidly and based on performance. Being performance based means that it is up to the individual to work hard to earn lots of money. This also means that the only people stopping their own financial and hierarchical progression are themselves.

Network marketing preaches the ideology of individual success within a collaborative environment. It may sound strange to put individual and collaborative in one sentence, however the basis of network marketing works in this way. To put it simply, the way an individual can succeed in a network marketing organisation is by learning the steps it takes to reach a senior position within the organisation right from the very beginning. What this individual must do is then repeat and teach the same actions to new people. Once the new people have learnt them, they regurgitate what they have learnt to someone else and so on. The better the individual is at training and assembling a team of 'new people' and getting them to perform well doing the specific duties, the quicker they can progress in the organisation.   

It is based on a four stage hierarchy where for three stages the fundamental roles do not change much, in terms of the duties. The four stages are as follows:

1.  Entry level - The new personnel in the business. Untrained. Learning the ropes

2.Team Leader - Doing so well at the entry level, you are promoted. You take on a little more responsibility as you get the next new person to be as good as you. After a llittle while you assemble a team and when they all start doing well, you get promoted again.

3.Assistant Manager - At this stage you will work closely with the manager whilst still doing your duties as a team leader. Your trainees are now doing the training and have become team leaders.

4. Head Personnel/Manager - Has the most control over everyone. Is responsible for motivating everyone to perform to the best of their ability. To get to this stage you would have needed to take on some managerial duties as an assistant manager. When the time is right the manager will promote you.

Just because the compulsory stages have been completed doesn't mean the opportunity stops there. There are normally roles beyond manager such as regional manager and other executive roles, but they vary from organisation to organisation.

This whole process goes on for the duration of the businesses operation. This allows for the business' employees to multiply rapidly under a big 'network' dedicated to the same cause. It also means, with more employees means more quicker expansion into different cities and countries. When you really sit and think about it, the way these organisations that operate using network marketing, is nothing short of genius.

Thanks for reading this post. For constructive feedback and criticism follow me on Twitter @Allenbusiness or on Google+ / LinkedIn...Anthony Allen. Remember to share too, it's much appreciated.

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