There are two main ways to do marketing – traditional and network. In traditional marketing, you use techniques like television or radio ads, or print advertising to reach your customers.
However, with network marketing, you rely on building relationships with potential customers through a network of people. Large networks can be efficiently managed with the help of MLM software.
Which is the better way to go? Let’s take a closer look.
Traditional Marketing vs Network Marketing
In a retail or wholesale establishment, the proprietor employs staff and pays them a required wage to promote their products. The employee is paid the same amount regardless of how many goods or services they sell. Due to the fact that if a store owner hires “workers,” they will be liable for paying taxes, insurance, and other incentives; all of these costs are factored into the final selling price of the product.
All members of an MLM network are entrepreneurs. Each of them is paid by commission. In contrast to typical businesses,MLM companies create and manage their sales force by encouraging and enlisting individual distributors to market their products and bring in additional individual distributors. The products sold are genuine and include everything from cosmetics to home goods to diet supplements.
Owning or starting a traditional business needs a big investment even for the average earning person.
There should be an address for your business, either a place on a lease or a permanent one.
Most of the time a traditional business needs several employees to run the business.
There should be a detailed record book or inventory.
The limitation of being restricted to a particular area if your business is not an online one.
The chances of earning income are linear.
You will most likely have to hire a lot of employees based on salary.
These employees will have to be trained on how to do their work properly.
You will be required to put in extensive hours of work every week.
The financial risk is much higher since a lot of investment is involved.
Most people will have to quit their full-time job to start a traditional marketing business.
The chances of failure are also higher.
The above-mentioned points are some of the major drawbacks of traditional marketing business
And that’s what makes network marketing the more attractive way of doing business.
The cost of starting up a network marketing business is lesser compared to a traditional business.
No need for a separate office building for the business. It can be done in a room in your house.
No need for additional employees other than yourself.
There is no need to keep detailed inventory records or a separate book for transactions.
All sales and business data can be managed effortlessly using a user friendly MLM software..
There is no fixed territory to establish or do your network marketing business..
People can do business from anywhere in the world.
The income that could be earned is non-linear and can be collected from various sources, like the residual income, commissions from selling your products and services, etc.
You can work on your own time when you feel the most comfortable.
You can devote your full attention to MLM or work part-time.
The risks involved are much less compared to starting a traditional business.
The chance of failure is there, but if you work hard, the chance of succeeding is also high.
Network marketing is becoming more and more popular as people are looking for a way to break free from the traditional 9-5 job. But what is network marketing, exactly?
Network marketing is based on building relationships with potential customers instead of reaching them through ads. It relies on word-of-mouth referrals rather than paid advertising, which makes it much less expensive than traditional marketing.
In this post, we have taken a closer look at both traditional marketing and network marketing and discussed the pros and cons of each.