Network Marketing

Network Marketing

Network marketing, popularly known as multi-level marketing, is a business model which entails a pyramid structured network of people who sell products of companies. Individuals in this network are normally hired on a commission basis. They get commission after performing a specified task for the company that hires them. Some of the tasks that these individuals do are making sales of products or marketing the service of the company. Network marketing can simply be described as a model that involves a pyramid structure of non-salaried participants who receive payments whenever they or a person below them makes a sale. In this type of marketing, the primary participants are consumers and their family and friends act as their customers, and this cycle continues.

Features of network marketing

Multi-Level marketing has numerous characteristics. It is composed of direct sales, independent business owners, selling a philosophy, the system of hierarchy, less or no advertisement, no fixed salaries, accountability and benefits to the participants. The organizations that use network marketing sell their products directly without using any well-defined channel of trade. The responsibility of selling the products is bestowed on non-employed persons who receive a commission based on the number of products sold. The participants in this type of trade are called independent business owners since they work as if they are promoting their own business. Network marketing uses a certain philosophy of marketing with the main objective of recruiting and selling as much the participants can to earn more commission. The sales agents create no relationship with their customers and more often, some clients are duped into buying the products on sale. The marketing system is hierarchical with the commission trickling down to the lowest person in the hierarchy. Network marketing is also characterized by less or no advertisement since direct sales offer more convincing power than the latter. There is no fixed salary in this type of marketing and commission given is based on the number of products sold. Everyone is accountable for the commission they get, the more they sell the more they earn.

Also Read About: Viral Marketing

How to succeed in network marketing

There are several techniques that one can use to succeed in multi-level marketing. First, one must identify the right company to work for. This process requires one to carry out research on the company they are interested in to determine if it is suitable for them. One should also look up CEO’s and other company leaders to determine if the leadership of the company is reputable and law-abiding. One should also investigate the products or services that the company sells to determine if they are suitable for their skills in marketing. One should lastly draw a business plan for building and expanding their business.


Please enter your comment!
Please enter your name here