Network marketing is a method of developing client contact by using other agents and individuals to meet with clients and represent you. Network marketing is used in many different businesses, but is most often found in businesses that are selling products or services that are of a very personal nature. Insurance and financial services are two good examples of products that people tend to purchase through friends and family.
How to use Network Marketing for your business
1. Identify if Network Marketing is right for you
Not all businesses can benefit from network marketing so it is important to identify if your business can before seeking to use it. What type of product or service do you provide? Do your clients seek to use you because they trust you and your company on a personal level, or are they only concerned with price and efficiency. Network marketing can help businesses who rely on reputation and trust.
2. Determine if you can budget for Network Marketing
Different types of network marketing can have different costs, but you should be aware that it will be necessary. Many network marketing plans call for hiring employees or representatives that seek to sell your product to friends and family within their personal network. They then are given a commission for the business that they bring in. Other plans call for full time salaried employees who work their contacts into continuing business relationships.
3. Establish your Network Marketing plan
Once you have determined that your business can benefit from network marketing, you must develop a plan for putting it into place. Search out qualified individuals who will represent your business and who have relationships with companies. Determine how many representatives you will need, what they will be selling, and how they will be compensated. It may be a good idea to slowly use network marketing instead of jumping into a large plan. Trial and error will show you how network marketing can work without committing you to a large network marketing plan.
4. Put your Network Marketing plan into effect
Taking all of the above steps into account, you next have your representatives go into the community and try to get new clients for you. You should see a spike in new clients while your representative works their contacts and brings them to your business. Eventually though, you must plan for your representative’s contacts to run out. It is at this point that you must have planned for either eliminating this representative or moving them to try to bring in new clients or sell a different product.
How to adapt your Network Marketing
Marketing as a whole has been greatly affected by new technology and better sources of communication. Now, clients all over the world can be exposed to your marketing. Keep this in mind while adopting any network marketing strategies or changing existing plans. Network marketers can use these sources of contact for bringing you clients within their networks. Representatives of your company may have vast networks of contacts, through online communities, social media, or other exposure to people around the world.