What is Network Marketing?

October 24th, 2008 by admin

What Is Network Marketing?

When people ask “what is network marketing?” it is usually because they have heard negative stuff about it. Usually because it has been confused with the completely illegal practice of pyramid selling.

It’s actually one of the most popular, and some would argue, profitable ways of earning extra money.

Basically, network marketing is recommending a product or service which you are happy with to the people you know… and getting paid to do it!

We recommend things to our friends all the time: a good TV programme, hairdresser, kids’ toy… we do it naturally, and frequently. So what is network marketing? Simply taking it a step further and doing the recommending on purpose. This is also known as multi-level marketing or referral marketing.

Network marketing is an exceptionally popular way of earning extra money because of the flexibility. As an agent you can have your own home based business, with the backing and products of a reputable, tried and tested company behind you. You can put in as many hours as they like when they like and with or without the children in tow! You can be sick, take a holiday and in some cases even retire, and still have a constant stream of income.

Selling a product

Ask the question ‘what is network marketing?’ and usually people will think of the party plan businesses such as Usborne books, Kleeneze or Avon. In these instances a product is sold on a commission basis by an agent and such companies literally have thousands of people distributing their products for them, often earning a healthy income by doing so.

It’s a win / win situation: the companies avoid outlay on shops etc while the worker is able to earn their commission as and when they like, putting as much or as little into their business as they like.

Selling a Service

In some instances, such as LPI or Utility Warehouse, it is not a product that is sold, but a service. This doesn’t lend itself quite so easily to parties or toddler groups, but often the rewards are higher as the agent is not paid a one off commission at the point of sale, but a smaller commission every time the service is used (see the relevant pages for details on how this works).

Don’t discount this!

It may not be your main focus of income, but even a couple of ‘sales’ a month could make a significant financial difference.

Structure

Usually within the network marketing structure you will be recruited by someone who is already an agent for the company, and will be placed in their team (or downline).

You then have the opportunity to recruit others and build a team (downline) of your own. Every agent then earns commission on the sales of the people within their team, as well as their own sales.

This is not pyramid selling!

What is Network Marketing?

A profitable stream of extra income for many thousands of Work at Home Mums. It does take a while to build up, but I know people who have three holidays a year on their network marketing profits - and drive a BMW (and yes. Their kids are older!)

Don’t be put off by parties you may have been to (and looked for the cheapest thing available to buy). There are hundreds of different companies selling a variety of different products - one of which will be perfect for you. and the network of friends you would naturally recommend it to.