What Is Network Marketing?

What is Network Marketing? Well, let us start with some names network marketing is also known as:

  • Multi-level marketing
  • MLM
  • Direct selling
  • Referral marketing

That ís the name so what is it?

Well it is a way of selling where the product owner does not employ the sales force. Rather the sales are done by people who own their own businesses to promote the product or service of the parent company. They get paid not only for their own sales but also the sales of the people they recruit into the business. This is called creating a downline. The downline is made up of other business people who want to sell the product themselves.

The standard network marketing approach is to build a structure of other business partners and then ensure they are successful. The more successful your business partners then the more income you are likely to earn. The exact structure will vary from company to company based upon their compensation scheme. It is up to you to ensure that you place partners in the correct position in the structure to maximize income.

In his book , The Business School for People Who Like Helping People, Robert Kiyosaki suggests that a network marketing business is the easiest way for people to move into the ìB Quadrantî and achieve independence and wealth. He saw that it is a low cost system that allows anyone to have their own chance at a profitable business. It must be stressed at this point that there are no guarantees in this business and that network marketing is not a get rich quick scheme. In general results are proportional to the effort you are prepared to put into the business.

The most successful people in network marketing appear not to be those that are great salespeople but actually they are the people who are teachers and mentors for their business partners. In fact, not only do the most successful people make money they also manage to give back to society at the same time by helping others.

Network Marketing – A Criticism

A frequent criticism that is levelled at network marketing is that it is a pyramid scheme – which are illegal almost everywhere.

In fact, MLM has been approved all over the world.

A pyramid scheme has no product and people only earn by collecting membership fees from people below them in the pyramid whereas in network marketing there is always a product that is of value to the consumer whether it is cleaning products, make up or health products there is always something the customer wants.

So, if you are a person who likes to help others then network marketing maybe the right business model for you.s

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