What is Network Marketing?
Today, for increasing and expanding a business, the business owners imply various kinds of business tricks; such as local store sales and service, online marketing and multilevel marketing tricks, and so on. Network marketing is a method through which independent agents as distributors of service or goods, and gets encouragement to build and manage their own sales force by recruiting other independent agents. In this marketing process, the agents earn the commission from their own sales revenue, and from the sales revenue of their “sales force”. The recruited agents are called the “down-line” of the first one. The business increases and spreads widely to the local area of the business owner as well as the distance location through the network marketing technique. This type of business process is also called Multi Level Marketing or MLM Business. When the business grows, management of networking business is not that much easy. So most of the Leading companies will take the help of efficient MLM software from the reputed companies
Advantages of Network Marketing
- You are your own boss in business!
- With network marketing, you can work according to your comfort level and convenience.
- You will feel the freedom of exponential business and the rapid growth.
- You can reach innumerable people irrespective of the region, language and culture.
- The business offers you an extra income source apart from your basic source of income. Passive income inspires you to increase “down-line” and the business of the owner increases.
- To start up and maintain any kind of business, you need to invest a lot of capital and there is a risk of loss besides a lucrative income. With multi level marketing system, there is no risk of loss of huge capital as the start-up investment is too tiny.
- Once you win a good number of “down line” agents or members in your network, you are in a much higher position. You are now will earn much through the compensation.
- If you are one of the toppers, you can earn from the revenue earned by your “down-line”.
Disadvantages of Network Marketing
- The greatest problem of network marketing system is that if once a member is negative of his business, he can never jump to the higher prosperity in the short period of time, but cannot hinder the others prospect.
- A member can be the topper of his “down-line” but he is the “down-line” member of his topper one.
- The more you try to progress your network marketing business to uplift yourself, your MLM “boss” will build his lot.
- Network marketing business requires a huge mass communication and the person has less communicative skill lags behind in success. Except for a high positive energy and force, you cannot be a gainer in this business process.
- If you cannot choose the product of a good company, people will not show interest to buy them or become a “down-line” member.