Selling products through network marketing is no longer the same as it used to be. In 2019, the traditional direct selling methods are slowly withering away. Enhanced technologies are replacing conventional methodologies, the approach towards direct selling is improving, and the changing customer behavior is influencing the future of network marketing businesses around the world.
What are the trending factors influencing Network Marketing businesses?
Everyone associated with network marketing should be aware of these trends and their impact on direct selling. It is important to note how these factors are changing the direct selling industry for the better, the impact of which is universal and permanent.
An increasing number of individuals around the world are becoming more interested in building a business. Instead of working as a laborer or an employee, people are seeking the “self-employed” status in their professional lives. Network marketing allows individuals to become self-reliant in terms of making an earning. The uptake for network marketing businesses is growing rapidly on the coattails of growing entrepreneurship.
By joining an MLM company as a member of its marketing network, you are able to
- Work independently
- Be your own boss
- Have a flexible work schedule
- Get paid frequently
- Perform responsibly and get rewards for that
- Collaborate with like-minded people
- Control the work-life balance
- Save money on transports, etc.
- Follow your passion
These advantages enable people to help others and create their own business identity. Self-fulfillment is the biggest reason why people are interested in being self-employed as a member of network marketing.
Secondary Income Source
Most of us are always looking for ways to save money and use it for real needs. When the actual take-home salary becomes insufficient for paying the costs of livelihood, people seek sources to generate secondary income. The growing inclination of hardworking individuals in creating multiple income streams is driving the growth of the network marketing industry.
Considering the unpredictable economic conditions of a region and the growing volatility of increment in wages, there is a high risk of main income sources drying up suddenly. To mitigate this, an alternative source of income from network marketing is being observed viable. Unlimited income potential, low tax deductions, frequent payouts, and several other advantages of direct selling businesses are helping individuals with their unexpected expenses.
The Internet has become the sought-after communication channel for billions. People are using their phones and computers, and connecting to others from around the world. Active engagement on social media platforms helps individuals in creating a growing base of followers. Socializing ensures that these followers stay loyal to individuals, associations, companies, and/or brands. Businesses in network marketing are harnessing this low-budget tool for expanding their brand reach. Online customer engagement is an additional boon to people working in the business of selling products directly.
A change in the shopping scenario is influencing network marketing businesses positively. Currently, a majority of retailers and vendors are making a move to online shopping from brick-and-mortar stores. This drive towards creating a virtual shopping experience is stemmed from the booming eCommerce industry and the high engagement of millions of consumers on online platforms.
In-store shopping features, product reviews & ratings, discounted pricing, and same-day deliveries are becoming great advantages for online shoppers. Direct selling businesses are capturing this trend by integrating eCommerce platforms in their business models. Since large orders are being placed in minutes, vendors are actively partnering with direct selling companies to sell their products online through MLM networks.
Rise of M-Commerce
With the penetration of mobile technology, smartphones, and strong internet access, retailers are increasingly becoming e-tailers. Globally, millions of dollars are being transacted for the purchase of goods & services over mobile phones.
For direct selling, the rise of mCommerce is allowing customers to check out easily and make payments from a range of eWallet apps and secure payment gateway options. Network marketing software is being repurposed as mobile apps to provide on-the-go access to direct sellers and marketers. Similarly, these mobile apps are being integrated with shopping features that deliver a wholesome experience for consumers.
Customer-centric Business Growth
Customer centricity is a new strategy for business growth. With the strong engagement of customers through online communication channels, retail businesses are understanding the customer perspectives better. Distributors are using different methods to increase customer satisfaction.
Network marketing businesses are now the sought-after mediums of finding out what customers like and dislike. Retailers are partnering with MLM companies to ensure their products reach the right customers organically. In doing so, they’re able to –
- create unique selling experience
- increase profits
- gain higher market share
- recognize new growth opportunities
By keeping the customer happy and at the center of business, direct selling companies are witnessing significant growth in repurchases and bulk orders.
Customized Compensation Plans
A trend that has specifically revolutionized the business of network marketing is the customization of compensation plans. Earlier, a majority of MLM companies would offer traditional compensation plans to their members. These include the Unilevel or Generation Tree Plan, the Binary Plan, and the Matrix Plan.
Now, leading network marketing businesses are offering customized compensations through Differential Plans and Hybrid Plans. In this way, each member can earn commissions through a tailor-made compensation scheme. Naturally, the uptake of network marketing is rising considerably through the growing adoption of customized compensation plans.
Data analytics is enabling direct sellers to create data sets on customer behaviors, purchase patterns, and product segmentation. As the quality of data collected from network marketing operations improves, selling products becomes more targeted and highly-successful activity.
Along with this, network marketing software such as Ventaforce is integrating advanced technologies such as host-controlled payment gateways, immersive UI/UX design, improved Admin controls, and qualitative filtering of user-generated content.