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Network Marketing Model

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Network marketing is known in the market by various names such as Home-based Marketing, Cellular marketing, consumer-direct marketing, referral marketing, or Multi-Level Marketing (MLM). The companies have followed a business model that creates tiers of salespeople. Here salespeople will recruit their networks of salespeople. The creators of a new tier or ‘up line’ will earn a commission on their sales and sales made by the members in the tier they created called ‘downline.’


What is Network Marketing?

what-is-network-marketing Set featured image

It is a business concept that will help to grow a company by depending on a network of distributors. To create money usually entails using three fundamental systematic strategies: lead generation, hiring, and building & management. It is divided into three categories: single-tier marketing, two-tier, and multi-level marketing.

Network marketing is a business idea that relies on independent agents selling to other people from their homes. You must develop a network of business partners or salespeople to help you generate leads and make sales if you start a network marketing firm.


Now we can see what the terms will mainly use for Network marketing.

  • Direct Sales
  • Self-employed business persons
  • Distributor
  • Downline
  • Up line
  • Plan
  • Sponsorship
  • Recruit


Types of Network Marketing


There are three types of Network marketing available in the market.


  • Single-tier Network Marketing
  • Two-tier Network Marketing
  • Multi-level Network Marketing (MLM)


Single-tier Network Marketing:


If you join a company’s affiliate program to sell its products or services through single-tier network marketing, then you don’t need to recruit other distributors, and direct sales are your only source of income. Avon, a well-known cosmetics firm, employs single-tier networking marketing. Some internet affiliate schemes pay you for driving traffic to the affiliate’s website. Single-tier networking includes pay-per-click (PPC) and pay-per-lead (PPL) affiliate schemes.


Two-tier Network Marketing:


 Two-tier network marketing, unlike single-tier network marketing, requires some recruitment, but your compensation isn’t entirely dependent on it. You get compensated for direct sales (traffic driven to a website) and direct sales or recommended traffic generated by affiliates or distributors you work with.


Multi-level marketing:


Multi-Level Marketing (MLM) is a kind of marketing strategy that sells products or services by acquiring people & building a massive network of marketers and salespeople who are capable of finding new prospects and closing more sales. In this method of selling, every person makes money whenever a product or service is sold.

A business strategy that relies on individual agents selling to people one-on-one, commonly from their homes. If you create a network marketing business, you may need to develop a network of professional associates or marketers to help you generate prospects and close more deals.


What to consider when entering network marketing


If you are planning to start your home business as a network marketer, you should research and consider some essential points. We will see what facts we should observe and implement. The six questions that need to ask before joining a network marketing company are mentioned below:-


  • How old is the organization?
  • What service or product will they provide (and is it something valuable for you)?
  • How excellent and liberal will be the pay distribution?
  • What is the honesty of the organization?
  • Is the organization providing good momentum and timing?
  • What about the support and training they offer?


If you want to make money when working your time with a network marketing organization, you have to put on something, which could be either products or services. To make more money, you should learn the fundamentals and teach your sales team the procedure for selling through network marketing.


Network marketing is not the same as a pyramid scam scheme. However, your earnings will come via sales made directly by you and the hierarchy of your sales team, similar to the pyramid structure. How much you earn from network marketing will depend on your ability and skill.


 Advantages of Network Marketing



  • Enables sharing of valued products
  • Facilitates more time at home
  • Excellent prospects of leveraging income
  • Easy to start


Disadvantages of Network marketing


  • It can be time-consuming
  • It does not translate into success for everyone
  • Requires face-to-face interaction
  • Rejection can be demotivating
  • Lack of good mentors
  • One should be wary of scams


Examples of Network Marketing


Tupperware: Tupperware Corporation is an American multinational company. The main focus is the kitchen and household products, and the brand was founded in 1946.

Avon: This British multinational company sells Cosmetics, Skincare, Fragrance, and personal care.

Herbalife: Herbalife Nutrition limited is a multi-level marketing company that sells and develops dietary supplements.

Amway: Amway is an American multi-level marketing company selling home care, health, and beauty products.


Network marketing as a Business model.


If you think of starting a business that will rely on multi-level marketing, make sure you should have a solid marketing team at the very core of your organization. The stronger your marketers base, the better your chances for long-term achievement.

Not everyone who desires to sell anything will be OK, but if you have someone thrilled about your business who might not be unqualified for your sales team, find another area for them. Marketing is critical to the victory of any business, but don’t forget that honesty and genuine passion for a company or product is a form of marketing in and of itself. If your only incentive to your sales team is money, they may cut corners or mislead others to earn more for themselves.

It will help if you also take the time to research your state’s laws regarding network marketing to ensure that your business is fully compliant. Deceptive marketing practices and pyramid schemes can land you in legal trouble if you are not careful.


 Hire People Delighted In Your Company

It’s essential to find the correct people excited to work with your company with honesty. Once you hire the candidates, they should know about the products and services then only be able to sell properly. They have to combine with the company’s work culture and should be enthusiastic, which will lead to more sales and recruits to your network marketing.



According to my research, network marketing benefits those ready to work hard. There will be no time limit for work and a chance to get a considerable income according to your dedication towards your work. I have tried to explain the essential details about network marketing here. Enjoy reading!














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