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What Network Marketing Is and Isn't

By Edited Apr 27, 2015 0 0

Network marketing is the same as multi level marketing it is a marketing strategy wherein a representative is compensated for the sales and their recruits. Here a down line of distributors and multi levels of compensation are being created. It is also called “word-of-mouth marketing, interactive distribution and relationship marketing, the sales people involved market their products directly to consumers through relationship referrals and word of mouth marketing.

This method of marketing make use of a network marketing software and utilizes independent sales representatives to reach targeted potential customers that the company fails to reach by just mere traditional online or offline marketing strategies. They recruit representatives or their so called sales force. By doing this they can gain access to your personal network, your family and friends and the rest of the people that you know or connected to you. They need representatives that will help them market the business because technically word-of-mouth marketing is a much more effective and powerful method to generate sales.

For some they find network marketing very rewarding, it gives them the freedom from having to work for other people. It gives them the chance to improve their skills in dealing with different kind’s people paying attention to their needs and wants. They enjoy the idea of running their own business exploring the use of a network marketing software and working with other people in their network. For them it is their way to be in control of their own financial growth, they can work in the comfort of their own home.

Despite the advantages and promising outcomes that these network marketing company presents they have always been a target of lawsuits and subject of criticisms. Most of these companies are held liable with their similarity to illegal pyramid schemes. They are criticize of having high initial start up cost, encouraging if not requiring their sales people to purchase and use the company’s products. Representatives also could be subject to a potential exploitation of personal relationships, since they are used as new sales and recruiting targets. And the list continues.

There are quite a number of advantages and disadvantages in this kind of industry and it would be wise enough to really dig in to the company’s history, what position it have in the market, how is it coping with the ever changing economy, what type of network marketing software or compensation plans they use and all other important details to be considered.



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