What do companies generally do for selling their products or services? Is it only the advertising or reaching out people door to door? Absolutely No! There are better methods available to reach a wider audience smartly!
And among all these available options, we have network marketing wherein companies makes a contract with the customer for compensating them if they sell their products or services. Over the past few years, this way of promoting products and services has gained huge popularity.
In this article, we will study about network marketing, its importance and future aspects.
What is network marketing?
Network marketing is a business model in which an organisation recruits people for selling their products at multi-levels.
In this business model, the people who are involved in direct selling of the company’s product appoints other participants under them who do the same task. With every successful sale, the people present at the initial stage of product selling earns a commission and the cycle goes on.
Thus, we can say that the people involved in this business network earn a commission whenever the following task is performed:-
- sale of a product
- The participants recruited by them makes the sale of the product
How does network marketing works?
one needs to understand how does networking marketing works, let’s consider the following example:-
Suppose there is a person A who is hired by an organisation XYZ for selling their product. Now, person A recruits person B to make the sale. Now with every successful sale, the person B makes, the person A earns a commission for it, along with the sale that he himself makes.
Further, person B hires a person C for selling the product and accordingly earns a commission for every successful sale the person C makes. This whole cycle goes in a similar way, thus leading to a boost in sales of any organization subsequently marketing cost is saved as the same is carried out in an offline manner.
Characteristics of network marketing
Direct selling
In this way of selling a product or a service, the network marketing organisations assign the duty to make the sales via the participants recruited by the management who gets the commission every time they make a successful sale.
Growth of business
All the participants who are involved in network marketing for the organisation are the true contributors to the growth of the business. These participants are called independent business owners as they work for promoting the business of the organisation.
Selling philosophy of marketing
In this mode of networking, the primary concern of all the participants is to engage as many people as they can in order to make more money. Thus, people may engage you in this network just to make a commission and not any kind of relationship with you.
Variable salary package
In this mode of network marketing, there is no fixed salary for the participants. It entirely depends upon the performance and the number of successful sales that they make.
No need for advertising
In the world of marketing, the impact of personalized contact is more powerful in comparison to advertising. Thus, there is no extensive need for any advertising leading to
Big players in network marketing
Realising the potential of network marketing, there are some of the top-notch companies that have adapted- to this way of marketing. Some of the best examples are Amway, Tupperware, Juice Plus, Vestige, etc.
People’s view
“What’s the best home-based business opportunity in the world today? Without a doubt, it’s network marketing. Like it or hate it, network marketing has created more millionaires than any other industry in history. There’s just one problem — it can be hard if you’re not used to it!” ― Kevin J. Donaldson, entrepreneur
“Network Marketing allows anyone the opportunity, with little investment, to build their own residual income. - Tim Anderson, American professional baseball shortstop
“Networking marketing has finally gone mainstream. It is time for you to legitimately earn from the knowledge economy.” ― Olawale Daniel, founder of TechAtLast International
Network marketing is essentially an innovative solution to bring a product or a service to a larger audience in a smarter way. Several companies have been benefiting from this way of marketing and rapidly it has been reaching more people and getting accepted worldwide.-
