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I believe in giving back. And best way for to give back in this industry is by helping other achieve their goals as I have been helped in achieving mine.
Jones Gore | jonesgore
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Business Model Determine Your Activity, What You Should Know

Aug 29th 2011 at 8:20 PM

Jones Gore, Netsmart Marketing

Like many I learned late in my Network Marketing career that without being properly educated in this or about this industry you'll keep making the same mistakes. It is often said that we learn from our mistake, but this isn't true in network marketing. Since there are different business models in network marketing, the majority that are not aware of these models will make the same mistake over and over again until the make themselve familair with these different models. To give you some idea of what I am talking about I will share a little about these models and how to identify them. And by indentifying them you can determine which is best for you if there is a such thing.

Although there are three, there are at least two business that you need to be aware of. There is the model that focuses on recruting and the other that focuses on Products sales. Without realizing it these model detemine the behavior in the field. For instance, recall the many training calls you been on which you are taught how to bring people in to the opportunity. You should recall if the host talk a lot about how to talk to people about the business and not the product. How to follow up and maybe introduce them to your upline. In addtion recruting bonuses featured during the training as well to encourage people to recruit. This is a business model based upon recruitement and not product sales.

In additon to this business model you will notice that the compensation for product sales have a very small profit margine. And typically this is true for service based companies that sell wireless and internet. To make a profit from selling these service you will need a very large organzation because the profit margins are so small. And this is why recruting is encourage more than sales.

Then there is the product sale business model where the profit margins are large at the retail end for both the company and the reps. This model has recruting only as a means to develop new markets to sale the product. It is typically free to join these opportunities there for the large organizations are easily built. In this organization your sales volume come generated main from retail customer instead of reps in your organization which is typical for service based companies.

And then there is a thired business model that is publicly traded and has to make a profit for it investors. This type of company is the worst because the compensation plan is designed to make sure the investors keep most of the money the reps generate.

So as you can see how you build your business is determined by the business model of your company. If you are having difficult time then you need to decide if this business model fits your personality and what type of training you need in order to improve in that particular model.

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