Network Marketing is a type of marketing that involves selling products directly to the consumers. Network Marketing is one of the most profitable businesses. 

Network Marketing is a rewarding and profitable business. Network Marketing is a marketing strategy that companies use to sell the products directly to the consumers without involving middle men such as retailers. As a result of this consumers can get the product at a lower cost. Just like any other business to achieve success in network marketing one needs to work hard and be consistent in the business.

History of Network Marketing

Network Marketing has been around for over 50 years. In 1934 a  California vitamin  company came up with the concept of multi level marketing. This company is now called Nutralite Corporation. The company started by signing up salespeople to sell their product to friends and family. In this process they would earn an extra $50 for making a sale which was a substantial income during that time. As a result of this more and more people from the family started joining the company and started doing the business so  that they could benefit from that extra income.

Types of Network Marketing:

Broadly network marketing is divided into 3 types. The 3 types of network marketing are:

  1. Single-Tier Network Marketing: In this type of network Marketing you will directly sign up with the company to sell its products and earn a commission for the sale.
  1. Two-Tier Network marketing: In this type of Network Marketing you need to recruit people to work under you and you can earn commission for the sale made by you and also from the sales made by the people whom you recruit.
  1. Multi-level Marketing: In multi level marketing there are more than 2 tiers involved and usually there are more than 4 tiers. As there are more tiers involved it is called as multi level marketing

How to make money with network marketing?

 This involves a group of people selling products of a particular company.  You will sign up with a company to sell its products. You will be paid commission for every sale you make. After you start selling the products of a company and start recruiting people under you to sell the products, you will be paid a part of commission for every sale made by the person who you recruited.

In case the person whom you recruit , starts recruiting another person under him, you will be paid commission from both the parties.

Is Network Marketing Legal?

Many people are scared about joining a network marketing organization or a multi level marketing organization because of the myths and misunderstanding about these terms.

It’s obvious for you to have a bad idea about this kind of marketing. It is because there are some really bad companies who cheat people just for the sake of money.And the other reason why there is a negative image is people keep jumping from one organization to another organization just for the sake of commissions. As a result of this people find it difficult to sell the products.

Network marketing is just like any other business. No business in the world gives you easy money. To become successful is network marketing you need to focus and work hard to earn money and gain profits. It is important for you to stay attached with only a single company so that you can start selling more and more products and you can build trust with the people.

When you start building trust with the consumers people will be excited and fascinated to join under you. As a result of this you will start earning more money and you can nail the business.

Companies that use the MLM business model have been a frequent subject of criticism and lawsuits. Legal claims against MLMs have included, among other things:

  • their similarity to traditional illegal pyramid schemes
  • Price fixing  of products or services,
  • backroom deals where secret compensation packages are created between the MLM company and a few individual participants, to the detriment of others
  • high initial entry costs (for marketing kit and first products),
  • emphasis on recruitment of others over actual sales (especially sales to non-participants)
  • encouraging if not requiring members to purchase and use the company’s products,
  • exploitation of personal relationships as both sales and recruiting targets,
  • complex and exaggerated compensation schemes,
  • false product claims
  • the company or leading distributors making major money off participant-attended conventions, training events and materials, advertising materials,

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