Introduction
Network marketing, also known as Multi-Level Marketing (MLM), is a kind
of business model that depends on a developed network of representatives
and distributors in order to grow the concerned business. It makes use of the
recruited independent representatives for it to reach out to potential customers
who the business or company would otherwise not be able to reach using
their customary offline and online marketing strategies. With this method of
marketing, the company recruits other individuals who are experts in
marketing and use them to increase their sales such that the overall sales of
the company not only depend on their own-generated sales but also the sales
of the recruited marketing personnel. The individual distributors are
thereafter paid a preset commission in accordance to the volume of services
or product that they individually sell over a given period of time. The
distributors, simply called the salespeople, are usually expected to sell the
company’s products directly to the customers using their preferred methods
like the relationship referral.
Among many marketing strategies that a company may use to promote their
product and increase their sales is Network Marketing. The usage of this
business model as a marketing strategy usually comes along with several
benefits to the company. First, it allows a company builds up a strong and
reliable customer base using a low startup capital by making use of the
referrals. You do not need to have thousands of monies to build a large
network of consumers; neither do you need to spend fortunes on adverts. For
manufacturing companies, it can be a good way to improve the customer
satisfaction. This is because selling the products directly to the customers
helps get reliable customer feedback and thus improve the specific product, a
move that also builds customer loyalty. It is also easier to create an
international presence using this kind of marketing at minimal costs. This is
so because the model has no limits at all; distributors can be recruited from
all over the world so long as the product is relevant to the area. Another
important benefit of putting this model into use is the ability to develop high
residual income through it. You only need to build your network of
salespeople and after that; you constantly receive good income. Because of
the many benefits that are associated with this marketing model, it is