Network marketing is an industry which depends upon 2 concepts, 1 is Direct Selling and the other one is Word of Mouth. Direct selling is when delivering a product without the need of the international import export companies and without the need of advertising. Direct selling is selling a product from the company to the customer directly which means from the company to customer with no intermedires.
A question to be raised is how would the customer know about the product if we dont needt the intermediries? it is a good question, the answer is we use the second concept which is Word of Mouth. Word of mouth is basicly recommending a product that you bought and liked. For Example:- mr X bought a new phone and he liked it, then he goes to his friend and he tells the story of his life with the new phone for 30 minutes (Like the vendor gave him money to talk) but guess what when his friend goes and buys the phone he is getting an amount of 0$ (Welcome to life). So with the concept of Word of Mouth we can reach allot of customers.
So when we have combined the two concepts together we created a new concept which is network marketing or MLM (Multi Level Marketing). Each company gives an oppertunity to get a certain percentage of the companies profit when buyng a product from them. Some companies uses matrix compensation plan and some of them uses Binary compensation plan.
To notice network marketing or the MLM is not Pyramid SCAM. Pyramid scam was a black horse of the MLM which made a huge bad reputation for the MLM companies. Pyramid SCAM was based on money only without any products plus the one at the top earns a 100% greater income then the one at the last. But network marketing (depending on the company) is different. The MLM companies gives an equal oppertunity to all of the people who are involved in the company with a compensation plane which gives every one the start of his business.
The good in network marketing is that people can work for it starting part time ending full time. Why is that? because network marketing is bulding a team of people which you can depend on. For the first 3 years you will build a team , the next 3 years you will moniter them and the last 3 years being here and their which is financial freedom and doing the business.
Small advice from my experience this is a small coast business with risk free so start doing it NOW or Never , Do or Die.
Independant representitive. Article Source:http://www.articlesbase.com/mlm-articles/the-rising-of-network-marketing-1001403.html
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