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About Network-Marketing
Written by | Published
2003-09-24 18:39:16
Network-marketing is a way to market and sell products and services. It is built around the concept that you as a satisfied customer recommend a companys products or services to your personal network. Your recommendations are then rewarded when you sell the product or service.
Products are sold primarily through in-home product demonstrations, parties or one-on-one selling. The reward comes back to you in the form of a provision from both your own sales and your networks sales. In other words multilevel marketing or network marketing refers more specifically to a type of compensation plan found in direct selling. A direct selling company that offers a multilevel compensation plan pays its representatives/distributors based not only on one's own product sales, but on the product sales of one's "downline" (the people a representative/distributor has brought into the business, and, in turn, the people they have brought into the business).
Network-marketing is an industry that has an annual turn-over of 100 billion US dollar worldwide. A lot of well known companies like The Coca Cola Company, Deutche Bank, Gillette and Palmolive use the principles of Network-Marketing to sell their products and services. In 2000, 55 percent of American adults reported having, at some time, purchased goods or services from a direct selling representative.
Distribution is of great relevance and importance regarding network marketing. In other words; network marketing is distribution. Depending on the company, the salespersons may be called distributors, representatives, consultants or various other titles. In a traditional distribution pattern there can be five or six distribution levels. The profiting factor concerning network marketing and direct sales is that there are no distribution levels that make the products more expensive. That is why the network marketing products often are less expensive than ordinary merchandise bought in regular department stores.
Every day more and more people discover the benefits of working with network-marketing. They discover that the possibility to work flexible hours and to make your own business is quite good. Network marketing is ideal for people that like to meet and socialize with other people. But one aspect to remember is that earnings often are in proportion to the effort that is committed. In each network marketing company there are different terms and agreements. But your main task for the company will probably concern representing the companys products and services to your personal network. Also presenting the companys concepts and values and learn new distributors to present products is your main work instructions.
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