Last updated on January 4, 2020
Network marketing is a blooming industry which began its popularity around 60 years ago. It involves creating a network of distributors to generate more leads to a brand or product. Although it has made hundreds of thousands of people wealthier by becoming a network marketer or distributor, the industry faces different big pitfalls through the years. For example, with the rice of bitcoins, it’s noch herauszufinden if network marketing would gain leverage on the revolutionary virtual money.
Such challenges makes an individual distributor, an entire company or even the industry itself to stumble every now and then. Yes, the network marketing industry continues to innovate new methods and techniques, but companies and its distributors experience big failures on certain areas. If you want to become a network marketer, for example, these pitfalls might lead you penniless instead of becoming wealthier. Hence, you must know these challenges to face them properly.
Planning to be a Network Marketer? Know these Challenges Beforehand
- Lead Generation
This is one of the oldest but most enduring challenges in the network marketing industry. It’s not that easy to generate leads which becomes a customer later on. Yes, internet, smartphones and apps offer wonderful leverage, but many factors stop a person from becoming an actual lead.
For example, some people hesitate to buy products or brands they don’t know. That’s despite of how well you advertise it to them. It’s hard to invite people to become a part of your network as well.
Hence, you must come up with a good strategy for lead generation. And it’s best to create such strategy even before you sign-up to a company.
- Performance and Retention of Recruits
You can’t easily stop a person to break away from your network. In fact, retaining recruits is a major problem many network marketers worry about.
Yes, they successfully recruit people to join their team, but what happens afterwards? Are those recruits doing well in selling products? Do they last for a long time under your supervision? Thing is, it’s usual for recruits to disappoint their recruiter.
As a solution, promise them about the benefits they get when they work well. Don’t merely promise them that they earn big even if they completely do nothing. Don’t give them false hopes. Instead, guide them on how to properly achieve network marketing goals, such as providing them sufficient trainings and resources.
- Market Saturation
The two challenges mentioned above are old issues plaguing the network marketing industry since its inception. The industry have acquired a new big challenge today—and that’s market saturation.
Saturation is the presence of large quantity of brands and products in the market. These products and brands come from different network marketing companies, but usually offer similar benefits with competitors.
Prime examples are health and beauty products. Think of network marketing, and you’d easily thought of diet pills, herbal shakes and beauty products among other similar items. There was a time when health products started to gain its footing on the network marketing industry, but it quickly became a popular trend. Before, it’s easy to choose which network marketing company of health and cosmetic products to sign-up for, but you’d have a hard time picking among dozens of companies today.
Thing is, choose the wrong company and you’d end up in deep pitfalls. Some companies sell fake or ineffective products, which inevitably leads you to serious legal troubles. Choose a not-so-popular brand, and people would have a hard time trusting its products for a purchase.
Hence, be sure to pick a company which offers relatively popular brand or products. Also consider the effectivity of products by knowing some comments and feedbacks of users. If you’re going for health products, be sure it’s approved by the Food and Drug Administration too. Lastly, think twice of selling expensive products, especially if there are affordable competitors around.
|Why Take Advantage of Technology for Network Marketing?
The challenges above cause big worries for network marketers today. But if you plan to hop on the industry and gain big, you must know how to use technology for big advantages
Think of using smartphones, stable internet and digital currency for your transactions. For example, the latest social media apps are great for recruiting new distributors. It’s also perfect for selling products on a wider audience. Plus, you can be active anytime and anywhere as long as you’re online.
Then, promote the use of digital money among your recruits and buyers. For example, make it possible for buyers to use PayPal, credit cards, bank transfer and even bitcoin for paying. That makes transactions appear more convenient, hence more people would buy from you.
Another reason to optimize the use of digital currency is the rise of cashless transactions today. More and more people use such mode of payments in paying for products and services. In other words, aside from convenience, taking advantage of digital money means targeting more audience to become your leads.
That’s when you should guide your recruits in using these digital options. Tell them how to efficiently generate leads, actually gain sales and conveniently transact with customers. Remember that helping them earn means delivering more gains to you as well.
Becoming a network marketer certainly isn’t easy. Challenges and pitfalls would bother you every now and then. But when you do things properly, plan your strategies and consider options well, you’d get a good chance to earn big later on.