What Is Network Marketing?

Network marketing, also known as affiliate marketing or multi-level marketing, is a business model which utilizes independent unsalaried employees to market a parent company’s products or services. The term network describes how the products are sold. Independent distributors often use their personal network of friends and business associates to market the products of the parent company and earn a commission on each sale that is made. Network marketing is a way for people to build up their own business by direct selling of products of a parent company and by recruiting new distributors for the company.

The real money in network marketing is made by recruiting new distributors. Having new distributors under your distributorship is referred to as a downline. In addition to the commissions being made on your own direct sales, you earn a commission on the sales of your downline. Many successful network marketers have downlines that number in the hundreds and thousands. The more people you have in your downline, the more profits you can make.

Starting off in network marketing, it is ideal to build up a customer base for the products or services you are distributing. This allows you to establish a business for yourself and practice the marketing techniques that the network marketing parent company will teach you. Network marketing is similar in franchising in that the parent company handles all the inventory of products and the independent distributor acts as an agent for the parent company. By following a tested marketing plan, many people can build up a customer base fast and can then begin recruiting other distributors for their downline.

Network marketing is ideal for entrepreneurs that are looking for a home based business opportunity that already has a marketing plan in place and a proven track record on the market. For a fee, you can become a distributor and will be set up with everything you need to start direct selling. The network marketing company will often supply business cards, marketing materials, product sample kits, and even a website for people to conduct their business. The also offer hands on training at regional meetings where you will have the chance to hear from other distributors on how they achieved success using the marketing system of the parent company.

The percentages of commissions vary from company to company, but if you make a lot of sales, the chances of having a viable going concern are great. With network marketing, you can own your own business without having to worry about writing a business plan or marketing plan. This is already done by the network marketing company. It is the fastest way to start your own business by leveraging on the success of others.