What is Network Marketing?
Network marketing is a business model that is based on a company distributing products and services through a network of independent contractors. Network marketing is also popularly known as multi-level marketing (MLM), affiliate marketing, and tiered marketing. Some of the most well known network marketing companies worldwide are Amway Corporation, Shaklee, Mary Kay, Tupperware and Avon. To understand how network marketing works, it may be helpful to think of a business model that most consumers are familiar with, franchising. In a franchise, an owner pays a company for the right to do business using that company’s products, services, and name. The parent company agrees to provide the owner with training, development, advertising and marketing support. While the name on the outside of the building is that of the parent company, the actual location is privately owned by an independent business owner. While networking marketing is not actually a franchising model of business, it does wo
If your on this page, this is probably the question going through your mind right now what exactly is this network marketing business model. This business is about utilizing your network and building new networks of customers and distributors to generate sales of products and services. To this day, many “possibly even you” associate it unfairly as a pyramid or ponzi scheme. In the 1950’s when Franchise’s first emerged they where labeled a scam, illegal etc. Today, many traditional businesses embrace this form of marketing, it allows them to reach customers they might not otherwise. Generally, you cannot see them, it could be your next door neighbor is involved in it right now. Typically a home business does not have giant signs or large offices, yet according to the Direct Selling Association (DSA) over 13 million people in the U.S. are working within this business model.It is a form of business in which you can make a small investment and through sheer tenacity achieve staggering leve
“Network Marketing is one of those pyramid schemes where the person at the top makes you sell stuff but they make all the money. In return, you recruit others and can make money off them. The only way you make money is if you get in at the top because the people at the bottom don’t make any money. Are they correct? If so, maybe network marketing really isn’t something you should get involved in. But if they are not correct, wouldn’t it make sense to find out exactly what network marketing is and how network marketing really works? This way you can make an informed decision for yourself as to whether it’s something you should consider investing your time, energy and money in pursuing.
Network marketing is a proven method of distributing products whereby companies, instead of paying advertisers and conventional distribution systems to promote their products, pay individuals, like you, commissions based on how much product your organization markets. Ultimately, network marketing is about a lot of people personally using a little product and sharing the product and their success with others. It is a way to reward participants commensurate with their individual efforts and for the efforts of others in their network. It allows everyone to participate at their own level of desire and commitment. It allows distribution costs formerly paid to business distributors at various levels to be paid to individuals who assume the distribution function. Network or shared marketing is a huge, multi-billion dollar a year industry and it is growing more in size and acceptance every year. Network Marketing Business Journal in the May issue (2004) predicts that XanGo, LLC will be next Bi
