What Is Network Marketing?

Assalamualaikum …



Network marketing is becoming very popular among many people around the world. Here is a simple guide to understand what network marketing is. Network marketing is a simple business model in which a network marketing company distributes its service or product through the individual contractors. Network marketing is also popularly known as multi-level marketing business, tiered marketing, and affiliate marketing. There are many popular companies out there in the market that are into this business, in Malaysia, most commonly heard of is Zhulian, Uptrend, Amway and Kenshido International.


The working of network marketing can be best understood by the franchise model. In franchising, the business owners are given the rights to sell product or service with the parent company’s name and brand. Along with this, the business owners get training, support, and other necessary things required to run the business. While network marketing is not totally like the franchising, it is similar to franchise model. In the network marketing business model, the individual contractors are hired by the companies to sell the product or service and distributer make profit by selling the products to their own customers.


The key factor and most attractive offer in this business is that the individual distributer cannot only make profit by selling products, but can also expand their sales team and build a long list of downline members. This way the marketers not only make profit from the sales made by them, but also make profit from the sales made by their downline members. This business has the ability to generate revenue from multiple sources and therefore this is what makes the business so popular.


However, there are certain things that should be considered when joining the network marketing business. The first thing is the legitimacy of the company. Next is the length of period the company has been in business. Most network companies require some initial investment from the distributer set up the business so the distributer  should be ready to spend some amount on the business. Next important thing to consider is the company’s return policy and the products popularity. Finally, the distributer should analyze the compensation plan offered by the company. Other than this, the distributer can look for training and support from the company.


Categories: Personal Development

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