What Is Network Marketing?

Author: kevin quigley

To begin with, the concept behind network marketing is simple. Sharing - through product or business philosophy - is the basis of network marketing.

Network marketing is a multi-billion pound industry involving millions of independent business people around the globe. Large companies like Gillette, Colgate-Palmolive, Kleeneze Europe, AT&T and others, have all turned to network marketing because of the very real edge it gives them in both domestic and international marketing.

Network marketing is a 'BIG' small business, which offers everyone, with or without business experience, the opportunity to start and run a home-based business that works. It is the last frontier where 'the little guy', (people like you and me) can make it BIG.

NETWORK MARKETING Vs TRADITIONAL MARKETING

The traditional way of marketing products is to move them from a manufacturer through a network of middlemen. National Wholesalers, regional wholesalers, Cash & Carry warehouses, retailers, - the 'middlemen' - all add their 'valueless' percentage to the price of the product.

By the time the product or service reaches you, the end user, you're not only paying for the product, but a percentage of the price for each and every middleman in the network.

In network marketing there are no middlemen. Instead of paying them, a network marketing company will pay you for whatever amount of product you cause to be 'moved'.

As a sole individual operating alone, the amount of product or service provision you could 'move' from your own efforts, would be relatively small. In network marketing however, the amount you 'caused' to be moved indirectly could be huge.

Here then is the essence of a network marketing compensation plan. For not only will you be compensated for the product or service provision you personally cause to be moved from your own direct efforts, you will also receive indirect compensation for the product or service provision that your 'organisation' 'causes' to be moved.

YOUR 'ORGANISATION'

To be successful in network marketing you will need to build an 'organisation'. That is to say you will need to 'share' the benefits of both the products/service provision and the business opportunity with others. In network marketing this is referred to as your 'downline'.

The 'serious' money to be had in network marketing is to be had from what is termed as 'over-ride' commissions from the 'movement' of product or service provision from the 'downline' your 'sponsor' will help you to build.(In network marketing it is the responsibility of your introducing 'sponsor' to help you build your 'downline'.)

All you need to do initially to build a 'downline' is to 'share' with others the information about the products or service provision and the business opportunity on offer.

Theoretically, if after 'sharing' the information with others and you subsequently attracted just five SERIOUS individuals who decided to join you in your network marketing business - for illustration purposes only - your 'downline' could equate to the following after five levels of geometric growth: