What Network Marketing / MLM is
In the previous post, I briefly discussed about what Network Marketing / MLM is NOT. In this post, I wanted to take a stab at describing what it IS.
If you have ever been to a restaurant and loved it, or saw a great movie, didn't you tell your friends and family about them? This is called "word-of-mouth" advertising. It is the most effective form of advertising. Network marketing / MLM is a way for businesses to leverage this powerful form of advertising - "word-of-mouth".
Here's a hypothetical example to illustrate. Suppose you found a great restaurant and recommended it to your best friend. Your friend and his/her boyfriend/girlfriend decides to check it out themselves. They go to the restaurant and loves it too... just as you told them. During the meal, the restaurant owner drops by their table and asks how everything is, whether this was their first time at the restaurant, and how they heard about the restaurant. Your friend tells the owner that you heard about the place from you.
A few days later, you receive a letter from the restaurant owner with a coupon for a free meal thanking you for your recommendation of the restaurant to your friend explaining how the restaurant has gained a potential long-term customer. The letter goes on to say that anytime your friend visits his restaurant in the future, he will send you a check for 8 percent of the value of the meal as a continuing appreciation.
Sure enough, you begin receiving a small thank-you check every so often. You are so impressed that you start telling others about the restaurant. This generates more free-meal coupons and more 8 percent word-of-mouth checks. After a while, you begin to receive small checks each month. After several years, you have helped the restaurant to have repeat, long-term monthly customers, generating you hundreds of dollars of extra, no-hassle income to you. The restaurant appreciates this word-of-mouth advertising since it is less costly than their traditional yellow pages and newspaper ads.
This, in theory, is how network marketing / MLM works.
If you have ever been to a restaurant and loved it, or saw a great movie, didn't you tell your friends and family about them? This is called "word-of-mouth" advertising. It is the most effective form of advertising. Network marketing / MLM is a way for businesses to leverage this powerful form of advertising - "word-of-mouth".
Here's a hypothetical example to illustrate. Suppose you found a great restaurant and recommended it to your best friend. Your friend and his/her boyfriend/girlfriend decides to check it out themselves. They go to the restaurant and loves it too... just as you told them. During the meal, the restaurant owner drops by their table and asks how everything is, whether this was their first time at the restaurant, and how they heard about the restaurant. Your friend tells the owner that you heard about the place from you.
A few days later, you receive a letter from the restaurant owner with a coupon for a free meal thanking you for your recommendation of the restaurant to your friend explaining how the restaurant has gained a potential long-term customer. The letter goes on to say that anytime your friend visits his restaurant in the future, he will send you a check for 8 percent of the value of the meal as a continuing appreciation.
Sure enough, you begin receiving a small thank-you check every so often. You are so impressed that you start telling others about the restaurant. This generates more free-meal coupons and more 8 percent word-of-mouth checks. After a while, you begin to receive small checks each month. After several years, you have helped the restaurant to have repeat, long-term monthly customers, generating you hundreds of dollars of extra, no-hassle income to you. The restaurant appreciates this word-of-mouth advertising since it is less costly than their traditional yellow pages and newspaper ads.
This, in theory, is how network marketing / MLM works.
posted by Hiro at 4:30 PM
0 Comments:
Post a Comment
<< Home