What Is Network Marketing?

Network Marketing according to Wikipedia.

–Multi-level marketing (MLM), also known as Network Marketing, is a marketing strategy that compensates promoters of direct selling companies not only for product sales they personally generate, but also for the sales of others they introduced to the company. The products and company are usually marketed directly to consumers and potential business partners by means of relationship referrals and word of mouth marketing.

Independent, unsalaried salespeople of multi-level marketing, referred to as distributors (or associates, independent business owners, dealers, franchise owners, sales consultants, consultants, independent agents, etc.), represent the parent company and are awarded a commission based upon the volume of product sold through each of their independent businesses (organizations).

Independent distributors develop their organizations by either building an active customer base, who buy direct from the parent company, or by recruiting a downline of independent distributors who also build a customer base, thereby expanding the overall organization. Additionally, distributors can also earn a profit by retailing products they purchased from the parent company at wholesale price.

Distributors earn a commission based on the sales efforts of their organization, which includes their independent sale efforts as well as the leveraged sales efforts of their downline. This arrangement is similar to franchise arrangements where royalties are paid from the sales of individual franchise operations to the franchisor as well as to an area or region manager. Commissions are paid to multi-level marketing distributors according to the company’s compensation plan. There can be multiple levels of people receiving royalties from one person’s sales.–

Much has changed these days with network marketing due to the internet. Gone are the days of cold calling leads and selling to your friends and family. The internet has opened the door to millions of potential leads and contacts, and if online marketing is done right, these leads will actually find you.

Now with that said, don’t get too excited just yet. Although it sounds simple, in which it can be, but it still takes work and time to learn and implement systems that work for you. There are many aspects to online marketing, and one can easily get lost within the world wide web.

Depending on the company and/or product you are marketing, it’s important to research your niche and develop a plan on how to effectively reach them. Focus on one aspect at a time and then move on to the next when you feel it’s time. In essence, before you go and blow your whole wallet on pay-per-click and lead systems, do your research and learn the necessary skills before hand.