How to set up a Network Marketing Strategy ?

Ambassadors, influencers, independent consultants… The actors of network marketing are varied but above all, very numerous. And this is the goal ! Entrusting the promotion and sale of certain products to a network of sellers, often amateurs, can nevertheless be lucrative for a company. So how to build a network marketing strategy ? We will explain you how it works, why to start and we will also talk about Qnet;

How network marketing works ?

The network marketing is a specific sales system, in all commercial fields (food, clothing, jewelry, etc.).): resellers (ambassadors, advisors, VDI, VRP) offer and sell a company’s products to their own network (relatives, acquaintances, subscribers). They can in turn recruit and sponsor new independent resellers to further expand this distribution network, in exchange for a commission.
This is what we call MLM (Multi Level Marketing), the multi-level sales (beware of scams linked to pyramid schemes: sellers are only remunerated by the commissions or bonuses they receive during a sponsorship for example). In order to be effective, this type of sale can be based on the natural virality of the system:

• excellence of the proposed products and reputation of the company;
• very good value for money;
• ease and speed of sharing and distribution by associating social networks to a marketing campaignemail marketing for example. A company can quickly become known and increase its sales thanks to good ambassadors;
• Attractive rewards (sellers) or offers (customers).

The influencers can also boost product sales thanks to their reputation and their community (influence marketing): consumers and internet users will be more inclined to buy a product praised and recommended by the community.

Why get into MLM ?

The Multi Level Marketing has been democratized in the last few years. With the advent of digital tools and social media, ambassadors and resellers now have an easier time disseminating and selling their products (or services) to the greatest number of people. Think about a strategy social media is therefore a decisive element in the success of its commercial objectives.
The independent representatives (ambassadors, consultants, VDIs, micro-entrepreneurs) turn to MLM for some benefits :

• possibility of working from home (be careful, however, it may be necessary to store more or less important quantities of products);
• commission on each sale;
• sponsorship (more referrals means better pay);
• training, integration or personal development programs.

As for the companies, they also benefit from Benefits of MLM :

• low investment and moderate risk-taking with controlled communication, a positive reputation and the recruitment of first performing and invested ambassadors;
• cost reduction: promotion and sale of products by network members. The investment related to advertising is therefore greatly reduced;
• time and productivity saving: internal company staff not solicited in the sales process;
• very interesting return on investment with a multi-level sales system well established from the start (selection of products, natural virality, worked communication, good practices of email marketing respected, choice of ambassadors).

How does Qnet rank in MLM ?

Qnet is an MLM company one of the best known in the world, which can boast 23 years of existence and experience. It is also part of the world federation of direct selling.
Specialized in the luxury industry (cosmetics and jewelry), Qnet markets 7 different product categories (as opposed to the usual 2 or 3) including education, home care and travel. Born in Malaysia and then bought by the Americans, Qnet has now established its headquarters in Hong Kong. However, European countries, including France, have banned the sale of its products on their territory following the numerous accusations of scams (especially towards sellers) that weigh on it.
With more than 10 billion in sales and more than 7 million sellers, the company has risen to the top of the list 53rd place (out of 500) from world ranking of MLM in 2020, (+5% compared to 2019). Official distributor of the Olympic Games in 2000, then in 2004, and official sponsor of the Brazilian soccer team in 2006, Qnet has also created an association to help the victims of the 2004 tsunami in Asia and participates actively and regularly in charitable operations and programs (jobs, education, health, etc.).)..

This distribution method relies on thebreadth of vendor networks, even amateurs, to distribute and sell products or services. Companies can define their marketing strategy by integrating network marketing into their business plan, for example to reduce some costs.