What is Network Marketing?

What is Network Marketing?

Have you ever been asked, “What is network marketing?” I’d love to know how you responded.

Here is my definition: Network marketing is a teamwork focused, word of mouth, sales system that leverages the distribution revolution (manufacturer/provider to consumer) to sell products and/or services. Unsalaried participants, frequently called independent distributors, are paid a commission, not only, for their own personal sales, but also for some of the sales volume generated by their sales force (downline team). Network marketing products/services are often presented as an amazing opportunity.

Q: Is network marketing really an “amazing opportunity”?
A: Whether you call it network marketing, multilevel marketing (MLM), direct selling, relationship marketing, word of mouth marketing, referral marketing, or pyramid selling, you need to understand it’s risky business. Network Marketing businesses have been steeped in controversy for fifty years.

Why is there controversy? The following quotation provides a succinct, bottom-line answer, “Studies by independent consumer watchdog agencies have shown that between 990 and 999 of every 1000 participants (i.e. between 99.0% and 99.9% of all participants) in MLMs in fact lose money.”

Tip: Before joining any network marketing company, do an online search for:

  • FTC vs Company Name
  • FTC vs Owner’s Last Name
  • FTC vs Top Distributor’s Last Name,
    you might be surprised by what you discover.

For many more tips, my recommendation is to read ‘Network Marketing Heads Up.’