What Is Network Marketing

Business Opportunity for Ordinary People

So, what is network marketing? We believe at its heart, Network Marketing is both a home business and an earning opportunity. It is there to help those people earn and save for a better future.

It allows ordinary people to refer products and services from a variety of companies to their family, friends and the wider public.

When products and services are sold they earn a commission based on Compensation Plan, assuming they qualify.

Company Perspective

Every company needs to provide goods and services; which they can either make themselves through a manufacturing process or buy in as finished goods.

Each must have its own Management Team and Employees; and each must have Systems and Processes in place along with applicable marketing material to give to those that need it.

In addition, every company will have its own Warehousing and Distribution that can either be in-house or outsourced.

Network Marketing companies are no different, except that they choose to focus the sales effort via Independent Distributors thus saving potentially high salaries as well as advertising and marketing costs which are mostly borne by the Distributor base.

Distributors, Downlines, Multilevel

The Network Marketing business model is also differentiated from other business models that sell through Distributors or Agents. This is achieved through the introduction of downline duplication i.e. the multi-level mechanism.

Downline duplication effectively enables Distributors to extend their sales funnel by sponsoring other Distributors from around the World thus increasing revenue and therefore increasing income.

History and Challenges

The Industry itself has an interesting history as well as many well documented challenges, even so it has become a global phenomenon.

Network Marketing Glossary

Not sure of terminology? Check out our glossary... all the key words you need to be aware of.