Network Marketing
Network Marketing, also known as Multi-Level Marketing
(MLM) or Direct Selling is a legitimate business model that
uses direct selling and relationship referrals as a method of
The simplest explanation of
selling company's products or services.
network marketing is that
it is a method of marketing
Just like any other company that sells goods or services the ultimate goal
that utilizes independent
of a network marketing company is to make sales and increase its
customer base. Instead of using the traditional method of manufacturing
representatives
to
reach
and delivering their products, MLM companies choose to bypass the
potential customers. It is
distribution cycle, selling direct to the customers. They use referrals and a
word-of-mouth approach to develop their customer base as opposed to
about your ability and skill
a large advertising budget and as such the money that would normally
to determine from those
go to the middleman and advertising can now be used to reward
individuals
circle
of
within
your
influence
business operators (Independent distributors) as a commission for
who
would be interested in the
products or services that
your company has to offer.
helping the company to make a sale.
In other words we can say that Network marketing is way of doing
business in which a sales force earns a commission not only for sales of
products and services they personally generate, but also for the sales of
others they recruit and bring into the business. Your Recruitments creates
a down line of distributors and a hierarchy of multiple leveraged levels of
rewards & compensation.
There are various Compensation plans popular in this Industry through
which company's can distribute commission such as Binary Plan, Unilevel
Plan, Matrix Plan, Accumulative Differential Plan, Repurchase Plan, Orbit
plan etc. These plans are differ with each other because of the logical
model that has been followed to distribute the commission.