What Exactly Is The Meaning of Network Marketing

What Exactly Is The Meaning of Network Marketing

Network marketing is a marketing strategy in which individuals harness their individual networks to sell products or grow their business. Essentially, it is a multilevel structure with interconnected individuals who generate money through direct sales and a commission from downline sales.

Are you looking for ways to generate extra income? If your answer is yes, you have probably heard of network marketing. It is one of the hottest retail industries out there.

Network marketing opportunities is a system that pretty well anyone can use to make a few bucks to supplement their salary.

In this post, we will dive deeper and explain what network marketing is to help you get a clear picture before you can invest.

When a new participant joins the network, a new level is created, so in the long run, everyone becomes a salesperson.

Since network marketing success depends on how extensive the network one has, everyone who joins the network marketing system will be recruiting more people to grow their network.

That way, network marketers will earn from each product they sell and for each product their recruits sell.

In network marketing, each person within the system is entitled to a percentage of sales revenue.

You make money from profits on direct sales and commission on sales made by your team.

While growing your network is one of the fastest ways to succeed in network marketing, you can also make money if you emphasize selling the products rather than signing up recruits.

Of course, when you start thriving, people will want to join you, including those who said a direct NO at first.

Network marketing programs usually feature a minimal upfront investment for buying the products that you will be reselling.

Since it is a medium used by manufacturers to expand their sales, participants usually get the products at a wholesale price so that they can make profits from their sales.

What is the real meaning of network marketing

Network marketing is a business model that you can join as part of their distributorship that the business has set up so you and other distributors help to expand the growth of the business in selling products and services, and everyone is rewarded with a commission for their efforts and some do better than others depending on how much of a network you can build under you from also sponsoring others.

  • Network marketing as a business model

Companies that use the network marketing model will always ask participants to recruit more people into the system.

So, if you want to start a network marketing business, be sure you can create tiers of salespersons.

The more you grow your team, the more are your chances of succeeding in network marketing.

A legitimate network marketing business will include genuine products that are of value to the customers.

When joining, evaluate the compensation structure of that particular network marketing opportunity before investing.

Even the company promises the best deal, avoid network marketing programs where you can only generate income by recruiting others – they are fraudulent pyramid schemes.

The network marketing business model requires sales-savvy people to present the products to customers in a pleasing manner. After all, marketing is critical for business success.

If you are that type, remember that honest and genuine enthusiasm about the products you’re selling is a form of marketing. Don’t use hypes!

Well, you are promoting the products of the company you’ve partnered with. But don’t forget one thing.

Deceptive marketing practices and engaging in pyramid schemes can land you in legal troubles.

  • Pros of network marketing

The primary reason anyone may consider joining network marketing is to create an additional revenue stream. Yes, it is possible to make money as a network marketer when you do it right.

Even so, whether it is a lack of skills or joining at the wrong time, a majority who join network marketing fail.

Here are the advantages of network marketing.

Network marketing relieves most companies the hassle of advertising, storing, and distributing their products.

The distributors can perform all these. Distributors in the top tier also enjoy this benefit.

Distributors in a network marketing system interact directly with customers.

This helps customers get detailed information about the products before giving away their money.

When you join network marketing, you are not limited to how you can grow your team.

You can have as many people as you can in your downline, which translates to better earning in any legitimate network marketing system.

  • Cons of network marketing

The myths surrounding network marketing are enough to scare anyone willing to venture into this potentially lucrative business opportunity. Despite being one of the hottest industries, network marketing is widely criticized for reasons.

Network marketing structure is no different from that of a pyramid scheme – the people in the bottom tiers work for people on top levels.

The only difference is that network marketing involves promoting genuine products while the others are a money game.

Because of their structure, network marketing companies are stigmatized as pyramid schemes.

Not everyone will be interested in marketing products belonging to another company.

This means the system grows exponentially until a certain level where distributors in the lower level cannot find anyone to recruit.

If they cannot generate a reasonable income from the sale of products, they will likely quit the system.

This may not be a real downside of network marketing.

Well, network marketing is a legitimate business where participants can make an extra income.

However, many people find it extremely challenging to differentiate network marketing programs from pyramid schemes designed to steal their money.

This scares many people who would invest in the system.

The Network Marketing Business Model


With several myths surrounding network marketing, it makes perfect sense for anyone to want to know its meaning.

Network marketing is a legit business model where any sales-savvy individual can make money selling products directly to customers.

However, because of its similarities to pyramid schemes, you need to keep an eye on companies with vague business opportunity presentations.

Always remember that network marketing does not work for everybody. If you cannot pay for what it takes to be a successful network marketer, let it go!

I hope you got great value from this post and if you did please share it with friends and family on your social media accounts so they can benefit from it as well.


Jim Morrison

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