Why network marketing does not let you play with the big boys

network marketing nortb

Network marketing is a limited game

Let's face it, in the end it is marketing. It is a game of giving value to a product or service. You just started your ecommerce business and many companies and friends advised you to start promoting it through friendships and facebook ads. Then a "marketing agency" approaches you and tells you that for around 50 000 sek a month they will find you clients through network and affiliate marketing. When you notice, you do not make so much of a profit even if you have a lots of sells. Why? Network marketing is a limited game....

Most of marketing agencies take away the profit from their clients.

They infatuate you with numbers. 51 countries, 300 000 clients (small of course) and a lots of income circulating around….or at least is what you are supposed to believe. 

Let’s do some math.

You drive an commerce and have around 50 sales per month. Each sale let’s say it gives you 1000 sek. After taxes you get a earning of around 400 sek per sale. So in a month you did 20 000 sek. 

One of this agencies approaches you and tells you they can increase your sales in 50%. Great!!! it means in a month you get an average of 75 sales. Which in crowns would be a profit of 30 000 sek. After the marketing agency takes their fee how much do you think it would/will remain in your pocket??

Instead, what if it was profit almost all of it, except the fees for the marketing process? What if you in fact have a proper customer profile analysis, with statistics and market studies behind? what if you have a proper content strategy and regular content publication which actually engages your users? What if your sales instead of 50% they increase 300% because you actually did a proper marketing job?

network marketing norm prism

Marketing does not need to be expensive

Start by searching the right methods and types of market. Some ecommerces work better than others and it is not because they have better products, but because they actually have better marketing strategies. Branding and content strategic marketing are 15% more effective than network marketing and you just need to have the right marketing strategy behind. They of course you need to know your clients and to who you will show your marketing content and material. After that sales go way faster and bigger. (And guess what no ridiculous fees to networking agencies.

Sitting with the big boys

An e-commerce that keeps a good marketing and branding strategy, usually expands between 20-30% their client database. In the end it becomes so big that usually the big boys decide to eliminate the competition by buying it.

Sounds bad, but it's capitalism. Even if you love your business, sometimes you cannot just compete with multi million companies... However with the right strategy and consistence, you can become one of these multi million brands.

So what strategy should you adopt? Or if a marketing company approaches you? what should you look for? What should include in their offer? What are their methods and their strategies?

Wanna know more? We have a series of articles that helps small companies to expand and become bigger. 

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