Multi Level Marketing FROM A DIFFERENT ANGLE – THE NIKKEN DISCOVERY
Multi level marketing or MLM is a form of distribution in which a person is part of or himself builds a network of brand consultants to sell a product or service. It is not necessary that the network consists of people who are in direct relation, the members of the network can also be indirect acquaintances.
Relationship is the main reason for member retention. Network marketing is a form of relationship marketing, it is based on the fact that an individual is interested in a brand or a product. Network marketing helps extend a person’s relationship with a product or service. Once the relationship has been established, it’s about maintaining it for the long haul.
In short, multi level marketing relies on the sale of products by a brand’s certified consultants. The system works on the principle of recommendation (a person recommending a product to a close person or indirect acquaintance). This allows the brand to find legitimacy quickly through word of mouth and to enter very competitive markets through distribution channels different from what we find in traditional companies. The sellers (branded MLM consultant) earn a percentage on the sales of the products that they have bought on their own account and which in turn have sold to other people.
Depending on the ambition of the MLM company, the network can be local, regional, national or international.
How does Multi Level Marketing ?
Let’s take an example of MLM explaining the concept of network. This is a totally fictitious example to make it clearer to you.
Imagine that you are an entrepreneur who wants to launch a new brand of chocolate. You will then select distributors for your brand of chocolate. Instead of taking distributors who will deliver to supermarkets, you will focus on distributors affiliated with your brand who will take care of placing orders directly with the end customer. You are in a very competitive sector, however, through a different distribution strategy, you will be able to take advantage of market share without being in direct confrontation with other brands in a large distribution display. Market penetration is different and therefore the perception that customers may have of your brand and products will also change. This is where communication comes into play in an MLM strategy, in the sense that the brand consultants (affiliate distributors) must embody the vision of the brand, use the products, to better persuade. This is the reason why, the vision of a network marketing business is fundamental. It allows energy to be conveyed through the various consultants so that it is felt on the end customer.
In absolute terms, the goal is to naturally create a hierarchical system of consultants for your chocolate brand. The more the network includes a significant number of distributors affiliated with your brand, the more there can be a good geographical coverage allowing to establish a lasting presence in a territory.
At the top of the pyramid, you, the manager of your brand, you will recruit distributors, that is to say the people who will sell you your product. Then, they will recruit other distributors. The latter will then recruit other distributors. And so on, there is no real limit to the network. In most cases, distributors (brand consultants) have the status of Home seller.
When you see this scheme many people think of it as a Ponzi scheme, nevertheless it is not, I invite you here to look at that network marketing is not pyramid selling. Quite simply because Multi Level Marketing is developing in a given market, framed by legislation. An MLM company manufactures or has manufactured products, designs a distribution system to meet a consumer need. Hierarchical systems (whose stakeholders have different functions with evolving responsibilities according to their placement in the hierarchy) have always been the most efficient to allow us innovation, speed of production and development of the sales force. All companies are affected by this highly efficient system. This is why Network Marketing is authorized in our country like others. Some consultants want to build a big network and be a leader, but others just want to sell the brand’s products and earn additional income.
The discovery of the NIKKEN brand
If I am writing this article it is because I myself am a consultant for a brand doing MLM. I live this network principle on a daily basis, and I can tell you that it is sometimes difficult to find a serious MLM that offers products that are different from what we are afraid to see on the market. It is true that we often find makeup, beauty, cosmetics, etc.
Nikken does not just focus on beauty products, the company offers something different by marketing magnetic products that bring us well-being, systems for filtering water as well as food supplements.
Founded in 1975, Nikken is a Japanese company operating worldwide. What appealed to me about Nikken is that the Japanese aura has a good image in our country, allowing me to easily explain Nikken’s vision. The products are the result of several years of research, where the technology of many products has been patented. It is a pledge of confidence with distributors like me and with the end customer. The products are of high end quality allowing me to be at ease when I talk about the products to those around me. I am sure of the products offered.
Magnets are used in Japan on a daily basis to provide care, which is how Nikken wants to make this know-how available to bring well-being to people.
I was interested in magnetic products at the time because I had health problems and through knowledge I was interested in the benefits of the magnetic field on the human body. Having magnetism in each of us, I told myself that it could be interesting to use products like this. It calmed me down. I didn’t have the idea of being a consultant right away. It came to me over time, when I was better and had a better frame of mind.
In the end, being a consultant does not bring me any constraints at Nikken, allowing me to exercise this activity in addition to my work. Knowing the brand and the market well, I now want to develop my MLM network to have a bigger team. And maybe later to live it fully.
Multi-level marketing: a good way to generate recurring income
The principle of multi-level marketing is to sell products corresponding to the needs of customers and recruit new distributors to sell products or services in order to gain additional profits. This method of marketing is similar to that of sponsorship. Indeed, it is a marketing method that allows you to do business by being as close as possible to your customers.
Multi-level marketing is a great way to passively generate money. The principle of the network is to take a commission on its own sales, but also on each sale of consultants from its own network. The hierarchy of consultants in its own network goes up to 6 levels. This gives great opportunities in the long term.
MLM is a great way for entrepreneurs to start a business while getting extra income outside of their business activities and growing over time. The advantage in this system is that you can declare yourself as a home seller, removing all the constraints of a traditional entrepreneur. The commissions received by the brand are simply declared to income tax. No business creation, no product development, no ussaf, nothing. It is much more practical like that to start developing in an entrepreneurial activity. One can gain business experience with minimal risk.
Multi Level Marketing Opportunities?
As I explained briefly above, network marketing is a new vision for our organizations. As part of a new image, each individual becomes a partner. The network then becomes a place of success for everyone.
Today we speak of “network marketing” to designate a new way of presenting, selling and distributing products or services.
Network marketing is aimed at all companies that have a high added value and wish to differentiate themselves from the competition, in part or in whole. Within a network, the company is no longer just a supplier of a product or service, but becomes a partner who offers a relationship of trust.
The Opportunities of Network Marketing from an Entrepreneur’s Perspective:
Network marketing is a real way to achieve economies of scale, and go beyond the corporate framework.
It also helps develop the company’s brand image and build a loyal customer base and can be daunting for entering a market.
The marketing budget is deported through the many consultants. Instead of advertising like traditional businesses, networks of consultants will communicate your business directly to potential buyers. With an entry briefing for new consultants or an online training you will be able to monitor the image of your company so that the perception of your project is perceived as useful and beneficial for the users.
Importantly, the different markets full of products and brands, you will be able to differentiate yourself through the recommendation system.
MLM consultants use your products and recommend them to those around them. The perception of the product is very different as the trust is already established
MLM is useful for developing an international presence.
The networking system can have tremendous leverage if you can get a solid core of MLM consultants. If these consultants are able to develop a dynamic, you will be able to develop an international network. Obviously, you need a well-established global strategy, with innovative products and attractive and scalable remuneration for consultants. And of course a distribution system capable of delivering worldwide, made up of several branches depending on the continent or country. With a different communication strategy, the culture can be so different from one continent to another. Members must be convinced of the merits of the offer, product, service or brand. Network marketing builds self-confidence and the confidence of the person in the product or service.
The benefits of MLM for a consultant:
The advantage for a person who wants to do MLM is the freedom in his activity. Attached to the company but not being an employee, the person can organize their commercial activity as they wish. In the hours that suit it.
She can start her MLM activity to first earn an additional salary, develop her network over time and then live fully from her activity.
MLM companies to differentiate themselves generally market high-end products, which benefit from patented research. It is really a plus in a business relationship to know that your products are flawless and that gives you confidence.
The MLM system also helps to get acquainted with the business side. Any honest MLM system has business tools for anyone connected with the business.
Even without a degree or experience you can start an MLM business.
I’m still taking some distance from the word “experience”, because as it is an economic model based on recommendations, often people you know them from near or far, or there isn’t really any ‘commercial activity. In any case, this allowed me to release this pressure from the “seller” when I started out.
There is sometimes a confusion between network marketing and viral marketing.
Network marketing relies on the recommendation system and word of mouth. This recommendation is based on a direct face-to-face exchange. There is a presentation of a product and a recommendation from a trusted brand.
Viral marketing is a mode of communication that helps spread awareness of a product or brand exponentially. It is widely used to acquire traffic (visitors) and recruit prospects (for example, when launching a new product), but also to increase the conversion rate (when prospects become customers) or to improve the loyalty rate (when customers return to the brand).
What is a viral marketing message?
It is an advertising message that spreads throughout society, not through a traditional marketing channel but through people disseminating it through a social network. It is this diffusion which makes the success of the message.
How does viral marketing work?
Viral marketing relies on the intermediary of a social media, for example Facebook, Twitter, YouTube, Instagram. As part of a marketing campaign, a brand will create an advertising message using one of these social networks.
The message will then be broadcast by the users themselves to their friends and acquaintances. This is what makes this post go viral.
The message will therefore be rebroadcast by friends of friends, then by their friends …
So the message will go viral because it will spread exponentially. An advertising message broadcast on social media will have a much stronger impact than an advertisement broadcast on traditional media. Indeed, the act of passing an advertising message is in the hands of the users themselves.
Why get into the world of Multi level Marketing
Multi level Marketing has many advantages that are not necessarily business related. The first most logical advantage of which is certainly the fact that it allows you to reap profits without spending hours on it. You just have to know the mechanism in order to better sell the products, and thus gain the trust of your customers so that they in turn become ambassadors.
Second, This sales system is accessible to everyone. Regardless of the seller’s characteristics (social level, ethnicity, religion, etc.), everyone can access it and achieve their ambitions. In addition, training is free in the field of MLM. Recruiters accompany new salespeople through the steps to be applied to succeed in their assignments, and this, until they are fully autonomous.
Third, discovery is one of the most fascinating activities for a person. Hence the fact that engaging in Multi Level Marketing allows you to extend your social circle. Indeed, the practice of this sales system requires good relational ease with customers. In this sense, Network Marketing makes it possible to meet new people and to know a little more about the different natures of human beings.
Fourth, MLM allows you to enjoy more financial freedom. Yes, you no longer need to depend on certain people in life, because this sales system offers the possibility of having income in order to meet expenses on your own. Bills, credits and other expenses to have fun. This system allows more time to devote to leisure and other forms of investment. Work at times chosen by you.
So here is an article for people wanting to learn more about Network Marketing. If you want information on my feedback to help you get started on an MLM adventure, or information about the Nikken company, you can contact me by email with pleasure.
Sylvain
