What is network marketing and how does it work?

What is network marketing in 2020?

What Is Network Marketing?

Network marketing is a business model that depends on person-to-person sales by independent representatives, often working from home. A network marketing business may require you to build a network of business partners or salespeople to assist with lead generation and closing sales.


Network marketing, Multi-level marketing, or direct selling, this industry is known by several names.

We usually take our products from our nearby stores or online and if we like any product we also recommend, promote that product or services to others, but that company doesn’t give you money for that promotion. In network marketing, we get a commission on that promotion.

How does it work?

So it is a marketing model in which people create there network or team which uses and promote the product or services of the company and gets a commission for this. In this marketing model, there is a level in the company, for example, if you join any network marketing company you join as a distributor and then your level increases as your network become large, widen horizontally as well as vertically. More the number of people using the product of the company recommended by you, you get more commission for every product.

There is another good factor in this industry, it is free from the expenditure of advertisements, this industry doesn’t do advertising, all its distributors do promotion and advertisements. You only get its product and services from their distributors.

They’re a chain of intermediate between manufacturer and consumer, like distributors, retailers advertisements, etc which lessen company profit and increases the cost of the product for the consumer, so this industry removes all these intermediates and provides a good commission to their distributors.

This industry produces the maximum number of a millionaire in this era. People live a luxurious life from this industry as this industry provides passive income from this. Once you created a strong and stable network then you will live an easy and beautiful life.

This industry provides you everything, usually, they give you with the following type of income

Discount income

Leadership income

Distributor income

Car fund

Home fund

This is a good business opportunity if you want to earn a beautiful life, but remember this needs a lot of patience and hard work.

Good job or not?

It is a great business opportunity which you can start part-time. If you work efficiently with your team you can generate a good amount of money where the only sky is the limit. But this business requires patience and time, only then you can get success here. You need to commit yourself to work for a minimum of 5 years in Network Marketing and If you work effectively with your team, your 5 years will produce you this:

·if 100% Work and 0% Profit – During 1st Year

· 80% work and 20% Profit – After 1st Year

·then 60% work and 40% Profit – After 2nd Year

·after that 40% work and 60% Profit – After 3rd Year

·and 20% work and 80% Profit – After 4th Year

in th end 0% Work and 100% Profit – After 5 Years

After 5 years you don’t have to work .there will be a large team of yours which will work for you. And this is called Money working for us and when money works for us, we have lots of free time.

If you are an employee, you know very well the value of time. Everyone wants to have ex

The Advantages and Disadvantages of Network Marketing

There is some stigma attached to the networking marketing business, especially those with multiple tiers, which can be characterized as pyramid schemes—that is, the salespeople in the top tier can make impressive amounts of money on commissions from the tiers below them. The people on the lower tiers will earn much less. The company makes money by selling expensive starter kits to recruits.

The appeal of network marketing is that an individual with a lot of energy and good sales skills can create a profitable business with a modest investment.

A good rule of thumb, according to the Federal Trade Commission (FCC), is that single-tier network marketing operations tend to be more reputable than multi-tier schemes, in which people make money based on the number of distributors they recruit.

Some reputable examples of single-tier network marketing operations include Avon Products, Mary Kay, and Excel Communications.

Types of network marketing 

There are several types of network marketing, including single-tier, two-tier, and multi-level.

1.    Single-tier marketing – you sign up for a company’s affiliate program to sell their products or services. You do not need to recruit other distributors, and all your pay comes from direct sales.

2.    Two-tier marketing – involves some recruiting, but your pay isn’t solely dependent on it. You get paid for direct sales (or traffic you drive to a website) and for direct sales or referred traffic made by affiliates or distributors you recruit to work under you.

3.    Multi-level marketing – a distribution-based marketing network that contains two or more tiers. Two other types of network marketing strategies are marketing-driven networks and name-driven network marketing.

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