What Is Network Marketing?

If you've only ever heard rumours about the negative side of network marketing, then you could be in for a pleasant surprise in learning about the general industry of network marketing here today.

Lets begin by helping you understand how a normal company operates, then I'll explain to you how network marketing operates, followed by how you can integrate your company or business into a savvy online, network marketing business network that has never been seen before.

1. Traditional Companies
When a traditional company starts, it invests funds into marketing which, which if done correctly will reach their target audience of buyers and they'll react to the marketing and buy.

After they buy, the marketing then has to be offset from the price of the items purchased and the remainder is a profit. Which then has a portion of it re-invested back into marketing, business costs and a wage for the company owner.

If the company offers a great service when a customer buys from them, the customer is happy and goes away and tells their friends to buy from that company, i.e. word of mouth advertising, which is free... And that's pretty good for the business owner.

But what about the loyal customer, who's just told all their friends and they buy too? Do they get any form of discount next time when they buy?... I don't think so, even though some smart companies now have referral and loyalty cards which reward their customers minimally so they keep spreading the word.

The above is how normal business operates (in a very brief and broad nutshell).

2. Network Marketing Companies
Lets now take it a step further and take the example from traditional companies and illustrate how network marketing companies work.

With network marketing companies, the profits that normally go back into marketing, is given out to the customers for their word of mouth to their friends. And the thing is, it's a very fair system, because he who tells more, and the people he tells go and buy too, the rewards are balanced to efforts put in.

However, the stigma and quite negative attitudes that have been generated by systems like this is "it's like selling your friends and pressuring them to buy!!" and for some network markeitng companies it is like that and hence the negative image.

But the thing is, the concept of the reward structure in network marketing is extremely sound and endless. Which means for the savvy business person or entrepreneur, they'll look at the numbers and realize it's stable. It's just the delivery mechanism in the business itself isn't stable, becuase a lot of network marketing companies have general everyday people join up, who "aren't" business people and couldn't care less about the business side of things... They just want their money, and are told to go "sell it" to their friends.

And if you've been in a situation like that, where either you or a friend of yours has invited you to a business opportunity, then you may have felt pressure from it and decided you don't like network marketing in general, whcih I can certainly understand.

You might even have developed the mindset that network marketing is a "Pyramid Scheme!" and let me dispell what a pyramid scheme is exactly. It's a system where no tangible goods or services are passed for the exchange of money, for example, a chain letter that asks you to invest $1 and then pass it on for a charity, that is a pyramid shceme and they are "Illegal," please don't ever get involved in anything like these.

The thing is, they can be pretty cleverly disguised to look like a network marketing company, and 100's of poor souls around the world have been duped into them, the comapnies gone broke and they lost their investment and business opportunity. So they swear never to get involved in another one of those "Pyramid Thiny's" ever again, silently dismissing anything that even looks like the thing they were in that scammed them.

And that's a fair viewpoint also, but hardly a balanced or open minded one!

3. Synergy Biz Net
Here's a new company that utilizes the power of business networking that business people have used for years, it's known, trusted and accepted in the community also.

On top of this, they've developed an online business network that is highly trusted, and controlled in a very honest online environment.

With a back end compensation that allows members who do decide to tell others about it, to be re-imbursed for their efforts. There is no selling groceries or health products to your friends or trying to push something that no-one really wants, becuase business people (who are the target market here, not everyday people with no entrepreneurial skills) want to reach more customers.

They also want to network business referrals to other companies who can handle certain jobs better than they can, and also recieve referrals from other businesses, this is more commonly known as referral marketing or Joint Venture marketing.

And it's a very lucrative business. What Synergy Biz Net has done is create a marketing platform that facilitates all this online, for business owners and entreprenuers.

There is no pressure at any level, nor is there any meetings, unlike regular network marketing companies that usually urge you to go to meetings to "stay in their grasp."

This networking system for business is run by your own entrepreneurial flair and you get rewarded for it by growing your own business, and also for referring others in to the business network itself... It's a beautiful synergy.

If you'd like to look into Synergy Biz Net you can do so here. I hope that this helps clarify your question about "what is network marketing" and can put to bed any puzzling thoughts about how the industry operates.

Overall, if you can find a system that answers your question "what is network marketing?" with a similar and honest answer as above, you'll have found yourself a great company to work with.

Investigate and do you own due dilligence and most of all, please keep an open mind to what you've learned here today.

Good luck.

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