Every business depends on networking between employees and other stakeholders in the company to accomplish the goals of management. To be effective in a small business, you have to take a look at the way a corporation builds its network of clients and recruits their employees. Effective networking practices assure the highest profitability for a business. This is why human resources is such a high priority in the corporate world. A corporation draws its strength from its client base and the reputation it builds by recruiting the best and brightest employees.
If you are a small business owner, you have probably thought of expanding your business. The way to increase sales is done through either leveraging capital or human resources. To leverage capital, you would borrow money and invest it in your means of production. This might be better equipment, more employees or anything that would increase your productivity.
Most small businesses choose to leverage human resources. A good example of this is an affiliate program. The idea behind running an affiliate program is to offer other companies or individuals a monetary incentive for acting as agents to sell your products to the public.
Imagine having a small army of affiliates selling your products. The best part is that you only pay them a commission after they sell your product. You have no paid salespeople at all. Basically, you just receive the orders, process the payments and ship the goods to the customer.
This is a good example of effective networking because you have a built-in loyal workforce once you have hired your affiliates. The benefits to the merchant are increased sales, market share and product visibility.
Another popular form of networking is direct sponsorship in a Multi-Level Marketing organization. In this type of marketing plan, an individual sponsors many other people into an organization. Then he trains this group of people on how to sponsor more people into the organization themselves. This method results in a very large base of marketers working to sell products for the company. The original sponsor gets paid for his efforts by the volume of sales his team produces. The profit trickles down through the organization based on the number of people each group leader has sponsored and the sales volume achieved by each member of the group for the sales period.
Affiliate programs and MLM are not for every company. There are costs of maintenance, and a payroll to meet every month. The biggest advantage of using these programs is that a non-employee of the company makes every sale. This way the company does not have to pay the worker's benefits and Social Security taxes. Each affiliate or network marketer is an independent taxable entity. They are not employees of the company from a legal standpoint.
Business owners must decide for themselves the best way to expand their business when it comes time to do so. It all comes down to a cost per sale analysis. Finding the best way to capitalize your business always includes market research and weighing the benefits of your available options.
If you decide to use one of the methods outlined above, it is best to discuss this move with a qualified marketing specialist. Also hire a qualified accountant for taxes and payroll purposes. You may want to talk to other business people who have successfully made this change for more information.
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Frequently Asked Questions
If I purchase a new boat in North Carolin and I ...
By: Grant | 27-09-2008
If I purchase a new boat in North Carolin and I pay the North Carolina sales tax on boats at their rate of 3% and I then register the boat in Georgia for use in Georgia (I am a resident of Georgia), will I have to pay any Georgia sales tax?
Corporate Hierarchy Go Over the bosses Head?
By: coachpauline | 26-09-2008
I was hired at a financial services company 8 months ago. As a commission based sales person my compensation plan including a $25,000 salary was based on selling a product where my 1st yr earnings were projected to be between $100,000 &150,000 depending on my skill. The marketing that I was promised didn't materialize, the Sr. Vp who hired me left a new VP came in and the focus of my division changed to selling a product where the money to be made by a sales rep is alot less, so the new people who have come in have been hired at a higher salary and a higher commission. Everyone else from the old regime has been fired or left. I asked to be brought up to par with the new workers, especially since I am by far the top performer. I kept being put off, told that a newer, even better permanent compensation plan would be put in place as soon as a new Sr Vp arrivedand they dont want to change my comp plan twice. The New Exec Vp Is here-This newer, better comp plan was supposed to happen for the last 2 months-now I've been told it wont be until Jan. At an evaluation I was told I am an outstanding performer, I will be up for a promotion when a management position opens up in my division etc. Meanwhile my sales #'s are always #1 or #2(only ever beaten by my supervisor who has years of experience) while taking time out of my sales day to bring new people up to speed, who are on a better comp plan and at this comp plan I will be lucky to earn $50,000. My boss keeps putting me off until this newer comp plan goes into effect, but I cant afford to be producing results and not earning for another 3 months. SHOULD I GO OVER MY BOSSES HEAD AND EMAIL HIS BOSS W/ MY DILEMMAAND CC MY BOSS OR WRITE MY BOSS AND CC HIS BOSS?My bosses boss has the ultimate decision making power. I feel like I have some leverage right now that I may not have down the road. I am close to closing a huge deal for them that will be the largest in their portfolio. I have never worked in a corporate environment before-was a business owner so don't really know how this stuff works, but I am getting pretty fed up. Also I am going to be sharing my leads with all these new people and at this comp plan my sales will certainly drop. I will not go out and bring in more business from relationships that I have made over the years if I am not paid what I am worth and at that point I will have no leverage.
Hello. Can anyone advise me. I need help getting ...
By: FreeSpirit | 23-09-2008
Hello.
Can anyone advise me. I need help getting clients. I've advertised in magazines for years but it doesn't work.
I'm a Spiritual Counselor and Healer.
Any advice would be greatly appreciated.
Also, I desire to earn extra income part-time for supplementation.
Thank you.
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Who is involved in Worldprofit.com?
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what is .Net Framework 1.1, is it used only for home or office networking?
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