Business start-up in network marketing

(26.08.2021) Vacuum cleaners, food storage containers or multifunctional kitchen machines – direct sales have been established for decades and have evolved, not least thanks to social media. Network marketing is an innovative method that can also be used as a second pillar. However, many people are biased because they confuse it with the so-called pyramid schemes.

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According to Section 16 (2) UWG, the law against unfair competition, these are prohibited. Rather, network marketing, also known as multi-level marketing, is a sales structure that is not just about selling products or services. “Each sales partner not only recruits customers, but also has the option of recruiting other sales partners. The result is the eponymous network in which everyone has a percentage share in the sales of their respective partners and salespeople, ”explains Mike Warmeling, speaker and success trainer from Osnabrück and founder of Warmeling Consulting. The expert shows how honest network marketing can be recognized.

Check the market situation
First of all, it’s about finding the right product. It is important to make sure that the product has a good reputation and is not of poor quality. After all, a successful company is not built on an inferior product. Mike Warmeling explains: “Join a network whose products you value yourself. Then you can conduct your sales pitches with conviction and enthusiasm. With our Network XAXX, we have found that customers are happy about the opportunity to earn something on the side. They are one hundred percent behind our products and have found that their recommendations are met with a positive response from friends and acquaintances. The unbeatable benefits of a product can make a difference. Beginners should therefore inform themselves about the market situation and compare the prices of different providers. “If a dietary supplement with a purchase price of 4 euros is offered in network marketing for 80 euros, but at a discount store for 12 euros, you should stay away from it. In network marketing, all levels earn money from a sale. The selling price has to give that, but it still has to be competitive, ”explains Warmeling. Another advantage in terms of competitiveness is the company’s short delivery times. Products should be able to be passed on to customers in the shortest possible time so that they do not have to wait long.

Authentic sells better
Another important factor is the honesty and integrity of the parent company. An impeccable reputation is essential, after all, a sales representative must be able to proudly represent the company in front of others. Authenticity is a key to successful sales. An example of a company with integrity is the money-back guarantee. When a network marketing company is one hundred percent behind their product, they’re ready to offer a refund guarantee too. Another tip from the expert is that there should be no entry price. Entry should also be possible with a small budget of a maximum of one hundred euros. “Never get involved in networks in which you have to buy expensive packages with goods as a debit. You are new to the business and need to gain experience with sales first. In the worst case, there are products for a four-digit sum in your apartment and you stay seated on them. The argumentation to skip levels in the network by buying packages or to get subordinate employees does not change anything, ”says Warmeling. In addition, it is advisable to rely on products that can be consumed, which leads to reorders and further sales. The professional says: “The principle of linking consumption to a provider is the attractive perspective in networking. The products do not have to be calculated at high prices if satisfied customers keep re-ordering. If you then have several products in the range, regular customers will also try these out. This generates a constant flow of orders. Small cattle also make crap in the long run! “

More information at www.warmeling.consulting

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