Network marketing is a term used to describe a marketing structure that is performed by individuals instead of a company. Also known as relationship marketing, is a marketing strategy that compensates independent commission based sales people referred to as distributors. Distributors are compensated for promoting company products not only for sales they personally generate, but also for the sales of other promoters they introduce to the company, creating a downline of distributors and a hierarchy of multiple levels of compensation in the form of a pyramid. Some of the most well known network marketing companies worldwide are Amway Corporation, Shaklee, Mary Kay, Tupperware and Avon.
Benefits of Network Marketing/MLM are different and various:
First Business. Network marketing businesses are an excellent option for those who want to start their own small business but have no idea how. Many of the contacts made in network marketing may very well turn into your business partners for other conventional businesses.
Flexible Hours. Network marketing allows you the flexibility of working part time or full time and requires nothing more than your interest and desire to explore. You can decide the working hours, total time for work, when to work, and how to work. You make your own decision and do not follow others.
Low Capital Start-up. It is among those exceptionally few business ventures that do not impel entrepreneurs to invest huge funds to start. You do not have to incur start up cost, huge infrastructure cost, huge running costs, and such other costs like in other businesses. Hence the risk is low. So, in case you are not successful, you can always leave it at any point of time.
Money. You can earn more money than you possibly can earn in jobs. There is no artificial limit or capped to your income. The higher sales in your network the more you earn.
You are your own boss. You work with an ever-increasing number of people from varied backgrounds and locations, all striving to achieve a common goal: the sale of products. You are rewarded for your personal sales and the sales of your network.
Long term residual income. In linear income or in other jobs, you get paid when you work. In network marketing you will get paid even when you do not work. You will get residual income from the effort you put and work you did in the past.
Personal growth. While working in network marketing, you can develop yourself and your personality. You have to read literatures, you have to meet people, you have to talk to them, and you have to address large gatherings and so on. You will also develop leadership qualities.
