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Network Marketing
First thought that comes to mind with many people when they hear of Network marketing is MLM or Multi-level marketing. Some of the other terms you hear are “Referral Marketing” and “Pyramid Selling” also called “Pyramid Schemes”. So what does this have to do with marketing your website? And with all the bad rap that this sort of marketing gets, why would you consider it?
First, what is Network Marketing. Quite simply it is about getting people interested enough in your site or product that they are willing to tell their friends, neighbors, relatives etc about your site and then have them tell their friends, neighbors, relatives etc about it. This is really very similar to another term you hear Viral Marketing. The biggest difference is Network Marketing is done in real life instead of the virtual world (internet).
So, how can you get everyone so interest that they want to tell everyone else? Well, it comes down to providing an incentive. Often Network Marketing is done by using “discount codes”. When someone comes to your site to buy a product they are given a place to enter a discount code. When used the person receives some form of discount, at the same time the person who owns the code gets some sort of incentive either in the form of a monetary payment or a credit toward future services or product.
For this to work you need to have several things:
- A product or service that people are interested in buying more than once.
- The ability to discount the price and still make money.
- An administrative program set up to track the sales and credits
Next, each time someone comes to your site pitch him or her the idea of getting “Free” product or service. The person is already interested enough in your product or service to buy himself, you just need to be able to convince him to tell everyone in his network that he knows a great place to get it.
When they register, you give them the code that he will give out for others to get the discount. When the next person buys (using the code) you now have the opportunity to expand you sales force by offering this new client free product or service.
If you get even a few regular customers to tell everyone in their network about your great service, this can translate into a huge increase in sales!
The next step (which takes an even better administrative program) is to move this into Multi-level marketing where they get additional credits for each person that signs up to get their own “discount code” to give to others. Once everything is set up, network marketing starts to take a life of it’s own. Each sale creates another leg to the marketing tree. And of course that all leads back to more sales for you.
If you have a product that people will buy repeatedly Network Marketing is a great way to increase sales!