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What Is Network Marketing?

What Is Network Marketing?

One of the hottest trends in business right now is what’s been dubbed as “network marketing.” This isn’t your typical job search where you send out lots of resumes and wait for a call or email from someone looking to hire you.

In network marketing, individuals with a product or service that they are trying to get others to use their name as an employee and be compensated for it while helping them promote the product themselves.

The people behind this model believe that by creating an environment where everyone is able to connect and contribute to each other, not only will people learn about the products and services, but also how to use and market them for themselves.

It seems like an almost magical way to earn money. However, there are some scams within this genre of income production strategies. To keep yourself informed and protected, we must dive into what exactly network marketing is.

What is network marketing?

Network marketing refers to any company structure that has members who are independently owned and operated. Members of these teams are paid for bringing in new team members through direct sales or referral incentives. These members are referred to as distributors, recruiters, representatives, etc.

Typically, these members are awarded non-monetary rewards such as t-shirts, bags, or small gifts for referring friends to the company so that they can make money as well.

How a network marketing business is different than a traditional business

what is network marketing?

Most people are familiar with the term “business” but what kind of business you have can make a big difference in how successful your business will be!

In fact, there are two main types of businesses you can run — direct sales or multi-level marketing (MLM). The biggest difference between these two types of businesses is how many people they recruit to promote their products/services for them.

With an MLM, you will typically have someone who recruits other individuals to work for her/him as consultants or representatives. These newly recruited consultants then get paid a small amount per person directly hired into the company while earning a much larger income themselves through recruitment bonuses and commissions on their downlines.

This system creates an upward spiral effect that continues to grow both the company and the individualist benefits.

It also means that even though you might not see anyone else working outside of the office, the people behind the scenes are still getting a good salary and supporting the family.

Personal sales

A lot of people get confused about network marketing because they believe that all multilevel companies are like direct selling companies, where you sell products directly to consumers. That is not true!

In fact, there’s an old saying in business which goes something along the lines of “You can’t grow from within”. The reason for this is that most corporate offices have very stringent policies when it comes to promoting yourself and your career growth.

Clothing stores don’t hire casual dress employees so why would multi-level marketing be any different?

By nature, MLMs encourage individuals to promote themselves by going up as a leader or trainer in their own company. This isn’t necessarily a bad thing but it does make them seem more focused on personal success rather than helping others achieve the same.

This is why personal sales are integral parts of how network marketers operate. These are conversations between two people where one person offers the other someone else’s product or service at a discounted price or free in exchange for them doing the same with theirs.

Multilevel marketing

what is network marketing?

Like any other type of business, network marketing companies have salespeople that sell their products or services to others. The difference is that these individuals are not directly hired by the company but instead recruited into an existing team with which they build relationships and promote the product/service.

The people in their “team” typically cover different levels in the organization. There may be people who manage teams, there may be people who recruit new members to the team, and then there are those who use your affiliation to the team to promote the product for the company.

This last person usually goes by the term distributor or ambassador. A large part of this position comes down to personal success and how well you market the product for the company. If you can’t seem to get results from trying various tactics, then probably don’t remain a member of the team!

There are many types of networks marketed towards different goals. Some are focused on weight loss, some on fitness, and some just like having fun doing things. By becoming an affiliate for one of these networks, you will earn a small commission for every sale you make or refer to the company.

Social media

what is network marketing?

One of the most important things for any business to succeed is having a presence online. This includes having an active Facebook page, a Twitter account, and/or a YouTube channel. Productive networking starts with someone else’s success!

Networking isn’t about you offering your help to other people, it’s about them offering their help to you. Develop relationships that build trust and keep in touch so that they can return the favor at some later date.

By sharing your experiences and knowledge, you’re creating opportunities for others to join in and learn from you. It also creates an audience who can be tapped into for marketing material or reviews of products you’re promoting.

Network marketing companies rely heavily on social media to spread their message. By adding individuals as followers, friends, or supporters, they create an environment where their product or service can thrive.

This article will talk more about how to start building a team of successful network marketers through social media.

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Henry Brown
As a freelancer and writer, I’ve been fortunate to have worked on projects for a wide range of brands from small businesses to Fortune 500 companies. Whether you need help with your social media, e-commerce, blog, or website content, I can help!


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