{"id":1979,"date":"2020-10-31T17:19:05","date_gmt":"2020-10-31T17:19:05","guid":{"rendered":"https:\/\/servicesground.com\/?p=1979"},"modified":"2020-10-31T22:30:19","modified_gmt":"2020-10-31T22:30:19","slug":"a-brief-guide-to-network-marketing-in-2020","status":"publish","type":"post","link":"https:\/\/servicesground.com\/blog\/a-brief-guide-to-network-marketing-in-2020\/","title":{"rendered":"A BRIEF GUIDE TO NETWORK MARKETING IN 2020"},"content":{"rendered":"\n

What Is Network Marketing?<\/strong><\/h3>\n\n\n\n

Network marketing, also called multi-level marketing, is a business model that includes a pyramid network of people who sell the company’s products. <\/p>\n\n\n\n

In this network, participants are usually paid on a commission basis. That is, people in this network receive a commission each time they perform a specific task, such as selling a product or their recruiters sell the product.<\/p>\n\n\n\n

Simply put, this model is based on pyramid structure. Unpaid participants are paid whenever someone sells under them in the pyramid.<\/p>\n\n\n\n

Structure Of Network Marketing<\/strong><\/h3>\n\n\n\n

First, manufacturers need several distributors, sub-distributors, and dealers to create a referral marketing structure. Secondly, these distributors buy goods from the manufacturers themselves at wholesale prices.<\/p>\n\n\n\n

They can either use them personally or sell them to other distributors for a profit. This process is still going on. Distributors, thus, will eliminate marketing materials until they reach their customers, otherwise, they can become end-users themselves.<\/p>\n\n\n\n

Also, these distributors have the opportunity to make some profit from this marketing network. They can get some commission from the manufacturers based on the total quantity of goods they buy and sell. Therefore, the work of these distributors is similar to that of insurance agents.<\/p>\n\n\n\n

How do Network Marketing works?<\/strong><\/h3>\n\n\n\n
\"Structure<\/figure>\n\n\n\n

In network marketing, companies first recruit a group of salespeople<\/a> who are passionate about their products. Instead of paying them a salary, the companies offer to sell the product at a discounted price and encourage them to sell it to others throughout the market. <\/p>\n\n\n\n

Whatever they do with these sales goes straight into their pockets. Many of these sellers or distributors recalculate their earnings to buy more products, and they sell to more people, thus increasing their revenue.<\/p>\n\n\n\n

In addition to encouraging companies to go out and sell products, companies also encourage their distributors to hire new distributors <\/a>themselves. As a result, they will receive a small percentage of each of their recruits’ sales.<\/p>\n\n\n\n

Network marketing is also known as referral marketing because these recruitments are referred to the company through primary distributors.<\/p>\n\n\n\n

It doesn’t stop there because recruiters are also encouraged to recruit “online<\/a>“. Finally, all distributors are also actively encouraged to convert, especially enthusiastic customers.<\/p>\n\n\n\n

Therefore, an independent distributor working in network marketing generates an income from a combination of their sales and the salespeople they recruit. Meanwhile, the company is making a profit by selling its growing distributor network and spending less money on marketing.<\/p>\n\n\n\n

Advantages of Network Marketing<\/strong><\/h3>\n\n\n\n