Network Marketing


Network marketing is a business model that relies on a network of distributors to grow a business .

Network marketing refers primarily to a marketing tool used by producers to increase their sales. For successful channelization of a business, a distributor network is formed which may also be multilevel

Network marketing is a type of business opportunity that is very popular with people looking for part-time, flexible businesses. Some of the best-known companies in  America, including Avon , Mary Kay Cosmetics and Tupperware, fall under the network marketing umbrella.

Manufacturers use this vast  distribution network for marketing their products to clients at different levels. It helps them indirectly to attract even more customers

 

Therefore, these distributors and dealers serve as the company’s official representatives.

.

As a result, without spending more money on traditional marketing techniques, such as advertising, the company can advertise its products widely.


If you are thinking of starting a business that will rely on multi-level marketing of any kind, be sure you have a solid marketing team at the very core of your organization. The stronger your base of marketers, the better your chances for long-term success.

. Marketing is critical to the success of any business, but don't forget that sincerity and genuine enthusiasm about a company or product is a form of marketing in and of itself

You should also take the time to research your ow n  country's  laws regarding network marketing to make sure that your business is fully compliant. Deceptive marketing practices and pyramid schemes can land you in legal trouble if you are not careful.


Structure of Network Marketing


Firstly, to create a system of network marketing, manufacturers require multiple distributors, sub-distributors, and dealers.


Furthermore, these retailers purchase products at wholesale prices from the producers themselves. They can either use them directly or sell them for profit to other distributors.


The chain is moving on further. Therefore, retailers must end up selling products before they meet consumers or else they can become final customers.


In turn, these retailers have a chance to make some money from this marketing network.

Based on the total volume of goods they buy and sell, they can receive some commission from manufacturers. The operations   of these brokers are, therefore, close to those of insurance agents.



Types of network marketing

Network marketing can be broken down into three essential categoriesThrough these networks, individuals make sales or recruit others to sell products.


Direct marketing

This single-tier marketing system requires an individual to sign up for a program to sell a product or service. Individuals who sign up for these programs do not need to recruit other distributors and are paid only on the direct sales they make.

Direct marketing is the most immediate form of sales. Find a product you like and get your friends and family to buy into it. A few top companies involved in this type of network marketing are Mary Kay cosmetics, Avon cosmetics, and Pampered Chef kitchen supplies.



Affiliate marketing