What is network marketing Full Information

Network marketing is a business model in which people are involved in the pyramid structure. And sell the products of a company.  Every distributor of this network, that is a member is a dependent sales representative.  People who join this network get a fixed commission for selling a product, or if a member added by them to the network sells the product.

In this business model every dependent is called an IBO. That is independent business owner, he promotes his business himself.  In network marketing, the product is transported to the direct consumer, that is a direct sale.

Network marketing is also called MLM
Other than that, there are many names of network marketing such as
cellular marketing,
affiliate marketing,
referral marketing,
consumer direct marketing and
home based business franchises
Companies like amway and Tupperware use network marketing to sell their products.

Network Marketing

Examples : In normal marketing, this is what happens if you sell the product of a company.
Payment or commission will be available but network marketing is slightly different and advanced.
Let's understand it in this way Suppose you are associated with a company and you sold your product to your friend, you get a commission, but your friend also sold the product of the same company to his friend, what do you think?  Who will get commission, your friend?  No, your friend will also get this commission in network marketing and you will also get a fixed percentage of his commission.  In this way, if you sell your product, you will get its commission as well.

This is the same as the pyramid grows because members keep selling products, and adding member them to their pyramid.  In this way, the pyramid grows and every member of its recording gets his commission, which increases with each new member joining.

Network Marketing Benefits or Pros

 Organizations that follow network marketing direct their product marketing and sales.  For this, they do not take help of any distribution channel, but responsibility is given to such non-employee participants who get commission every time they sell.  One does not have to invest a lot of money to get involved with MLM.  There is no time boundations, such participants are also given a lot of offers and discounts because they are also the customers of that company.

  There is no need to do much advertising in this business model because of person to person marketing is more effective.  The pyramid of this marketing model becomes very large, along with that the commission to every participant also increases. The network did not give any fix salary to the participants in it, the better they perform, the better their commission means profit will increase.

 Network marketing model is not a perfect model

Because many times such a company's also entered in the market which attracts customers by showing fraud plan.  And runs away with their money, so there is a great need to be cautious with these companies.  And at the same time it is necessary to do a little inquiry before joining any company, then why is he not saying his friend only.

Before joining any network marketing, you should know the answers to some questions.

1) What is the principal of that company
2 ) What is the track record of the founder of             that company
3) How to train in that company
4) Do you consider the product of that                         company as full
5) Does the quality and quality of that product        look useful
6) Will people be excited to buy and use that            product?
7)  Has that company been promoted                          effectively?

  So such questions will help you to join the network of that company or not.  Nowadays, it is a time of much competition, often people are very wrong in wanting to get a little more.  Because there is so much to show people, but who is so wrong and right, you have to take decision very carefully.

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