What is Network Marketing? – Network Marketing Definition

Network Marketing Definition: A business model in which an associate is leveraged to sell products and services. This network of distributors is required to build the business. Typically with this multi-level marketing and direct sales business model you will be able to leverage the efforts of a team and get paid on multiple levels.

What makes this business model popular is the fact that it gives the average person the opportunity to start a part-time and possibly full-time business from home with flexible hour. This is due to the fact that network marketing typically features a low startup cost and access to a product line that can be sold directly either in person or through an affiliate link.

The network marketing industry covers a wide variety of niches like travel, cosmetics, health and wellness, jewelry and more. Some of the most notable companies in the USA are Avon, Mary Kay Cosmetics and Amway. We will cover the variety of niches and companies to look out for in each list later in this blog post.

When it comes to building a downline and getting paid off of the efforts of others network marketing often gets a bad rap. A network marketing system where the majority of revenue is produce by recruitment rather than the sale of product is considers and illegal pyramid scheme.

Be sure to investigate your potential multilevel marketing company thoroughly before spending any money. I have reviewed hundreds of online income opportunities and this is by far the best one.

Old School Network Marketing

When some people think of network marketing they imagine housewives buying and selling fitness products at home parties, or a salesperson trying to get you to take a look at an opportunity that has made so many millions by simply talking to family and friends.

Neither one of these images give a real clear picture of what network marketing is all about. Network Marketing is neither a hobby nor get-rich-quick-pyramid-scheme but an opportunity to earn substantial income running a part-time or full-time business.

Network marketing success is a result of dedication, focus and determination to build an organization selling legitimate products and services in an effective way.

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IS NETWORK MARKETING A PYRAMID SCHEME?

There are a number of reasons why people ask “is network marketing a pyramid scheme? “ The truth is that a legitimate network marketing opportunity is not a pyramid scheme. Network marketing must have a product or service that the company provides to be a legit opportunity.

Unfortunately, many pyramid schemes attempt pass as legitimate multilevel marketing businesses until the FTC eventually step in and shut down these fraudulent companies.

The key is not to join an opportunity that emphasizes recruiting rather than the promotion of  a product or service.

Because if  members are getting paid solely for recruiting without the exchange of a product or service you will quickly find that that company is no longer compliant with the FTC and will be shut down.

The safest way to protect yourself from this is to find a network marketing company with a proven track record.

 Is Network Marketing a Pyramid Scheme?

Pyramid Schemes are illegal. For one to make money in a pyramid scheme another will have to lose money. This is simply taking advantage of people. In contrast, in network marketing you actually earn when another is able to duplicate your efforts.

For some time people thought that the only way to make it in network marketing was to hunt down family and friends and get them on a company presentation. While this warm market list still serves as the foundation for many successful network marketing businesses, people are now using more sophisticated techniques to utilize the power of the internet, and other long distance sponsoring techniques to build their business.

What is network marketing?

When you ask someone this question you are bound to get various responses depending on who you talk to.

Talk to someone who joined the opportunity and learned the ropes and took the massive long term action necessary to build a successful business and they will tell you:

Network marketing is the greatest opportunity on the planet. They will tell you about how the average person can become financially free with little investment.

On the other hand if you speak to someone who never really got busy doing the long term actions necessary to build a profitable business and they will tell you:

That network marketing does not work. Only people who get in early produce results.

But this still does not answer the question at hand.

What is network marketing?

WHAT IS NETWORK MARKETING?

Network Marketing is a direct sales model that allows the sales representative to become an independent distributor and earn commissions on the sales of company products, recruiting other representatives, and creating a downline of distributors.

Network Marketing Success – How Does It Work?

Network Marketing is definitely not about getting rich quick. This is a common misconception when people join a network marketing company. After seeing all the successful people walk the stage on a sales video a prospect may be convinced that this happened because those individuals are lucky. However, nothing could be further from the truth. Network marketing success is based on a basic set of principles and laws.

Network Marketing has the potential of becoming a serious source of income for people who are serious about building a real business. The blueprint has been laid out and the only proof you need that it works is that other in the past have done it before. If your company is a good one they will provide the necessary training for duplicable results.

One key to Network Marketing success is leverage. By leveraging your time to increase the productivity and the efforts of others will bring you closer to reaching your goals.  

  1. Paul Getty, said “I would rather make 1 percent on the efforts of 100 people than 100 percent on my own efforts.” This simple and easy to understand concept is the foundation of network marketing.

Another key to network marketing success is duplication. Some of the most successful network marketers utilize systems and attract people to their offer in a seamless way. These individuals work dedicated hours on a consistent basis to build a long term business.

Network marketing is about helping others get started in business with a low overhead. As with anything there is a skill-set involved that can be learned and taught. After learning this skill you can take advantage of the lifestyle and increased network as you build your people-to-people business.

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How to choose the Best MLM Company?

There have been hundreds of network marketing companies started over the years.

How to choose the right one?

Let’s investigate this further shall we…

MLM Products

Be sure to investigate the quality of the products and company customer service representation. A good place to look is the Better Business Bureau as all formal customer complaints will be listed there. Don’t let a simple complaint discourage you. However, be sure to look closely at how the company responds to these complaints. For new network marketing companies it is common to see shipping and back office complaints.

When choosing a product it is important to think about the benefits of the product and whether or not it is in high demand. Think about the economics of the product that you are selling and whether or not it will be profitable.

Network Marketing- Should I talk to Family and Friends?

Your network marketing company and home based business should make you feel good. Building your network marketing business can be tricky, as family and friends often times don’t make good business partners.

Often times it is best to simply let people know what you are doing and let them see the results of you and your team in an indirect way.

If you are utilizing social media simply post the results of others until you start producing your own results.

Check out my #1 Recommendation.

When you consider joining a network marketing opportunity it is important to think abou things from your customers point of view. Is there really a compelling reason for a person to buy this product of service? What are the price points of stating this business? Is it something that the average person will be able to access? Will your customers want more?

How to Generate More Leads Sales and Reps For Your Network Marketing Business?

The Four Types of Network Marketing Companies

All of the network marketing companies will fall into one of these below…

Tangible Products

These multilevel marketing companies sell physical products that range from skin care, weight loss supplements to juices.

The vast majority of mlm companies will fall into this category. I named some of the most popular ones below:

Sell Digital Products:

This is by far my favorite type of mlm company.  Some companies sell digital products like courses, tools and coaching.

These companies teach you the real skillset to reaching the top ranks in any other type of company. And if you check out the reviews of most companies you have to reach top ranks to earn a full-time income.

Information based products are amongst the most popular type of products on the internet. At the end of the day you will find that understanding the marketing side of network marketing is often the missing piece to reaching the upper 1% of a company.

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Sell Services

Some network marketing companies that sell services like legal, energy, road side assistance and medical care.

Here are some of the more popular and successful companies:

Travel Based MLM Companies

These travel based companies sell booking services when you can get paid commissions through sales on you company replicated site.

I have listed the most popular one below.

Hire An Accountant

As your business grows it is important to seek counsel from accountant. Understand what to do about taxes as this business will often require quarterly reports.

Train Your New Members

It is important to train your new members in your network marketing mlm business. Recruiting without helping will not help your team very much. Having a system designed to train people new to the business can not only act as another stream of income but also build a downline critical to your network marketing success.

You can test drive by far the best and most simple system I have ever come across here.

Throughout this site, you’ll find additional post, reviews and resources. Simply type what you want to know in the search bar. If you cannot find the company or product that you are looking for then leave a comment and I will investigate. My goal is to give you an inside look into network marketing training, understanding compensation plans, and much more…

HOW DOES MLM MARKETING WORK?

what-is-network-marketing

When you join a network marketing opportunity you are making a small investment to become an independent distributor of a company’s product, service, or business opportunity. You have signed up to make commissions on the sales that you produce and those who you recruit who do the same.

Your ability to make money depends on your ability to sell things and teach your downline organization how to do the same thing. You earn commission based on the total amount of product that moves through your business.

THE KEY BENEFITS OF NETWORK MARKETING

There are a number of important benefits to network marketing

  • Low Cost To Get Started
  • The ability to work from home
  • Create your own hours
  • Potential to save on taxes
  • Endless income potential.

Network marketing is a popular business model because it allows a person to start a profitable business with a low startup cost. This mlm business model is simple and yet offers unlimited potential income.

The key to network marketing success to find a system that works and produce a result. This system should be used to show others how to produce the same result. At that point you will not only be compensated for the sales that you produce, but also from the efforts of those who you have taught.

This income is leveraged from the efforts of others.

One good way to answer the question: “What is network marketing?” would be to quote J. Paul Getty:

I’d rather have one percent of the efforts of 100 people than 100 percent of my own efforts.

TOP NETWORK MARKETING COMPANIES

The top network marketing companies will have been around for five years or more. Most direct sales company do not make it past this 5 year point.

and many more… (use the search bar)

When you look at these top network marketing company it is important to understand that a vast majority of people who join a network marketing opportunity effort never make any money. There are a small percentage of independent business owners making hundreds, thousands, or millions every year.

So don’t let anyone sell you on an overnight success story. The truth is that you will have to set up and learn how to operate a real long term business for success.

IS NETWORK MARKETING A LEGITIMATE BUSINESS?

In order to build a profitable network marketing company it is important to master the skills necessary to produce successful results. There is an art to effective sales, marketing and leadership.

If you truly want network marketing success find those who are having the success that you seek and simply model what you do after them. That’s right. All you have to do is the same thing that they did with the confidence that you will produce the same result.

You will have to build a network. And will have to learn the marketing skill necessary to create long term success. However, if you are willing to put in the time and effort as an independent business owner you can have endless earning potential at your disposal.

So what is network marketing?

Network marketing is a proven business model, with low startup cost and endless earning potential.

PPS – Already in network marketing? Need more traffic, leads, sales and sign ups? Check out My #1 Recommendation.

Did This Help You? If so, I would greatly appreciate it if you commented below and shared on Facebook.WHAT IS NETWORK MARKETING

Marc Antoine
marc@marcmoves.com

Text me, 404-576-8015 (Yes, I am a real person)

Considering Coaching? Check Out My Work With Me Tab Where I Help People Everyday.

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If you enjoyed this post about “What is Network Marketing”, like us on Facebook and comment, please.

Best Regards,

Marc Antoine

34 thoughts on “What is Network Marketing? – Network Marketing Definition”

  1. Congratulations, Marc Antoine, I highly recommend the informative article on marketing and networking to all individuals interested in business in general. It is a great read and worth the time. Moreover, I am wishing you continued success in network marketing with abundant blessings.

    1. Sometimes this is due to misinformation. Other times it is from the popular notion that you have to be amongst first inside of a company to have success, which is simply not true. The top earners in the industry simply have mastered skills that help them to reach more people and typically that is where the disparity lies.

  2. Network Marketing completely changed my life. I makes you become a stronger person due to the adversity you face and learning curve.

  3. Good post. I was frustrated with network marketing in part because I was just hunting down family and friends.

  4. Its like you read my mind! You appear to know so much about
    this, like you wrote the book in it or something. I think that you can do with a
    few pics to drive the message home a bit, but instead of that, this is great blog.
    An excellent read. I will definitely be back.

  5. Thanks for this article, I wanted to know more about mlm. I never joined because I did not like the way I was approached but I really like your site and the way you build your business online.

  6. Hello, after visiting your web-site I wanted to let you know, I appreciate the time you put into this post, it is more detailed than most post out there on the subject.

  7. Wonderful work! This is the kind of information that are meant to be shared around the internet. Shame on Google for no longer positioning this post higher! Thanks =)

  8. Thank you for your information. I just joined with a company about 2 months ago. Looking for help with lead generation.

    1. Hey Susan! Thank you for reaching out. The best way to get in contact is to set up a Freee 15 minute coaching call. Then we can see exactly what your needs and goals are. If you are outside of the US we will use Whatsapp for the call.

  9. What’s up to all, I think every one is getting more from this web page and this detailed article and I am glad your content is designed for new people.

  10. People get crazy when it comes to these things. They think they can just join something and give no effort and make money. That is not how it works. Good breakdown of the industry sir.

  11. You’re so awesome! So wonderful to discover somebody with genuine thoughts on this subject matter. Really.. thank you for starting this up.

  12. My family always say that I am wasting my time. But you gave me the confidence to keep it moving. I am glad to work with you because you actually just showed me what you did to go from nothing to hit the leaderboards. Most people say that they will do that but really don’t. You just showed me no questions asked. This system is amazing. Thank you.

  13. Glad to meet someone like you sir. I have to tell the truth at first I was not sure if you would reach out to me after I got you #1 recommendation. Then I saw you email welcoming me to the team and how you reached out to see exactly what I was looking for. You sir are a rare gem. I was joining people who would spend an hour to recruit me and then I would never hear from them again. This was the exact opposite! I got more than then help I needed I now its up to me now to just implement the plan we set up. Thanks so much!

  14. Thank you so much for this bog. When you said (Yes, I am a real person), it warmed my heart. Simply because many of us are not looking for quick rich schemes but legal means to better our families’ lives but end up being victims.
    God Bless you for serving us. May our success be your reward:-)

  15. I found your review of the DXN opporunity written nicely.

    My wife’s friends from Bolivia sell this product. It is popular in Bolivia.

    On the personsl level Sr. Juan’s wife has lost a geat deal of weight through it.

    I guess any plan works if you have the health, weakth and your heart is in it.

    Right now my email is down guess i must give it to comment.

    Keep up the good work sir.
    I believe your heart is in it.I

  16. Great Job. You have to work this industry like a business if you want it to work for you. Overall good layout to the website and good information on how to get more leads. Cheers.

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