What Is NetWork Marketing?

Network Marketing, also commonly known as MLM (Multi-level Marketing or Direct Sales) is a way of distributing and selling products and services through a group of independent distributors (like You and Me) rather than through traditional retail outlets. Some people even relate it to a Franchise Business concept.

How does Network Marketing work?

When you joined a Network Marketing company, you are known as a Distributor or Independent Business Owner. Being a distributor, you have two basic functions:

(1) to sell the company’s products or services and

(2) to recruit more distributors to sell the company’s products or services.

Each new prospect that you ( the distributor ) brings into the organization is, in turn, encouraged and trained to bring in his or her own prospects. The result is that you as an active distributor eventually develops a hierarchical structure known as a Downline team that looks like any organization chart in a company with a lot of employees.

MLM Organization

You gets sales commissions on your personal sales based on the company compensation plan. You also makes a commission on the total sales from your organization. You are entitled to get reward for performance bonuses by reaching certain sales levels. Some company reward physical product like a Car whilst others provides holiday with fully paid first class plane ride and accommodation.

Since you are getting profits from your own sales as well as from the total sales of your organization, it is to your advantage if you  guide,help or train your distributors to succeed in the business.

However, it is not easy for you to do this alone, you will need a team to grow in the Network Marketing business! By joining the right system group and leveraging on their training or activities, you will grow your business a lot quicker with the team you built.

Finding the right system or leader is not always easy. There are many factors to consider when joining such a group. Therefore, you must do your own diligence before joining any system group or Network Marketing (MLM) Company.

In case you are wondering, why network? Here is an explanation by Robert Kiyosaki — Author of the famous “Rich Dad Poor Dad” book that has produces many millionaires because of its message.

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# Do you have any comment regarding the above topic? Appreciate your valuable input in advance!

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9 thoughts on “What Is NetWork Marketing?

  1. I ran across this blog post today searching online. Great blog post. thx for sharing. I started a blog about a month ago and this reminds me of my first blog post, I wrote on what is network marketing.

    • Hi Shalin,

      Starting an MLM outfit is not easy, need lots of analysis to find out the best model and compensation plan for your affiliates. Your support is crucial too. There is also the Legal matter to abide to.

      Anyway, good luck and hope you will come back for some reading later 😉


  2. It takes a team approach to do well with a MLM. This is why everything we join is a hybrid. We like earning whether those we sponsor do or not. What we like best is high customer to sponsor numbers. We find it simpler to sponsor in this type of program also.

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