What is Network Marketing?

Network Marketing or Multi-Level Marketing (MLM) as it is sometimes called is a distribution method used by companies to sell and promote their goods or services, often things like fragrances, cosmetics, jewellery, health products and items for your home.

Why do companies use MLM?

Rather than deal with shops, wholesalers, middlemen, advertising agencies etc the company supplies the goods or services to the customer via an Independent Distributor and pays the Independent Distributor a percentage of the sale. On top of this the Network Marketing company also pays the person a team bonus on the sales generated by anyone they Sponsor into the business (called their "downline"). The amount of this and when they qualify for this depends on the company's actual compensation plan.

It is often a cheaper way to sell their goods, which means normally they can also give the end consumer a lower price than they would selling via shops or television ads. Some products are simply sold better on a one to one, face to face basis, that may sound strange coming from a company that has a background in Internet Marketing but it is true that people want to try items like perfumes before they buy them.

The other benefit is that growth is in theory easier to respond to and that feedback about products, offers and pricing is quicker which should mean they market more of what people actually want to buy.

Can you make money in Network Marketing?

The amount of money you receive is dependent on the time and effort you put in. Network Marketing is not a get rich quick scheme or money for nothing, but yes there is certainly money to be made in networking and many people around the world have dramatically improved their lifestyle and that of their families by working with a Network Marketing company.