The success of a business depends upon a number of factors, such as workforce, business policies, risk management, capital management and most importantly, the marketing of products.
In this article, we will be discussing network marketing, the most innovative concept of bringing a product or service to a wider audience in a feasible and efficient manner.
What is Network Marketing?
Network marketing is a business model that is adopted by an organisation to build a strong network of business partners/customers for marketing their products and services.
Some of the successful businesses that have been involved in this concept for a long time are- Amway, Vestige, Flamingo and many others.
Types of network marketing
The success of leading firms like Amway and vestige set a very good example for the new entrepreneurs who are worried about the sales of their product. Depending upon the requirement, every firm adapts to different types of network marketing strategies.
There are many types of network marketing. Let’s have a look over some of the prominent types of network marketing.
Single-Tier Network Marketing
Instead of building a huge network of distributors to market a product, a person is involved in direct sales of a company’s product to the customers. For every successful sale that one makes, he earns a commission amount for it.
Leading cosmetics brand, Avon adapts to the Single-Tier Network Marketing for engaging customers.
Two-Tier Network Marketing
As the name depicts this business model is confined to two levels of marketing. This means that for every successful sale made by a person and the people working under him, earns him a commission.
Ken Evoy’s founded SiteSell is leading the industry with its Two-tier network marketing business model.
Multi-Level Marketing
This business model goes beyond Two-tier network marketing. Every business partner who is associated with the direct sale of a product of the parent company earns revenue not only against every direct sale that he makes, but also earns for every successful sale made by the distributors under him.
Some of the common examples, for this level of marketing, are Amway, Vestige and flamingo.
Experts’ 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, Author
Network marketing is based purely on relationship selling, which is the state of the art in selling today. Small and large companies throughout the country and the world are realizing that individuals selling to their friends and associates are the future of sales because the critical element in buying is trust. ― Brian Tracy, American-Canadian public speaker
All in all, network marketing is an amazing business model in which the company rather than hiring its own sales representatives, bring the product to the customers via business representatives and their associated members.
