The Benefits of Network Marketing


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Network marketing differs from normal marketing in that a seller can recruit customers, who are then known as down lines, to sell the products. In turn, they evangelize the concept to others. Over time, the result is a large schmooze with the original recruiter at the top, which explains the name.

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The Benefits of Network Marketing

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  2. 2.  Network marketing involves marketers recruiting their customers, called down lines, to sell products. The customers benefit by creating new income streams for themselves, while a small part of their sales commissions goes to their recruiter as compensation. This creates a win situation for all parties involved. This is the main reason why this type of selling has spread like a bushfire around the world.
  3. 3.  It is known by other names such as direct selling, referral market, peer to peer advertising and so on. The concept has its roots in California, where many company pioneered it to sell some of its products. It soon became popular with other companies, and eventually spread around the world. The idea is now used to sell everything from toothpaste to high end crockery.
  4. 4.  One reason the concept is so popular is because of passive residual income. Once a recruiter has built up their system, they do not have to work anymore as long as everyone else in the web is working.
  5. 5.  Another attraction is that there is no limit to what one can make, unlike in normal employment. As one seller noted, this is one job where there are no strikes or picketing for salary increments; all a person has to do is work on their link, and the increases are taken care of. There are many people around the world with lavish lifestyles financed through this concept.
  6. 6.  The business also has low start up costs. This is because there is no need to rent business premises or hire workers. This combined with the fact that a person buys into an established brand whose goods are already in demand, means that one can quickly build up a large, highly profitable system with minimal costs.
  7. 7.  There is also little need to maintain a large inventory unless necessary. The combination of this will not require anyone to hire workers and space results in a business with low running costs. Taxation is also friendlier, since revenue is treated as personal income which is taxed at a lower rate.
  8. 8.  There is little wonder then as to why network marketing has become so popular. It provides a growing income for millions of people around the world. It also enables companies to reach consumers in locations and with minimal advertising costs, something that would not have been possible with normal selling. For this reason, most companies also give bonuses to recruiters for the number of people they get to join the organization.
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