What is Network Marketing
Network marketing is also known as multi level marketing model that allows selling to be conducted on the basis of referral and relationship building. In the network marketing business model the distributor will be regarded as the notional franchisee of the parent company and thus for this the distributor gets a brokerage or commission. The distributor does not only receive the brokerage for the business they have done instead they will also be paid for the work which is done by the subordinated who are recruited by them. The commissions are usually calculated based on the number of products sold. This technique of marketing is very ideal as a business model it provides the distributor with an ability to reach its target or potential customers which is key to enhancing the business’s profitability. Network marketing is also known as the chain marketing where the chain of people is created who will sell the products and in the chain every person will get the compensation for their own work generated but also for all the work done by all those whom they have recruited and are standing in the line or in the chain below them.
According to the Network marketing business model each and every single distributor is said to have their own independent business as the distributor is only affiliated with the parent company but not working for them. The benefits of using this model are reduced investment expenses and low operating costs because of its good use of resources such as time. This business can also be referred as the people’s work because it is the relationship building and referral work that leads to income in this business model.
There are a number of benefits which connect with the network marketing business model. The most significant merit of this model is that there is no any capital or minimal investment which means there is no other financial risk other than simply time wasted if it does not work out. On the other hand, with a very minimal investment amount you can be connected to the network marketing business model. Also the main benefit is that the person will be remunerated not only for their work but also for the work which is done by those people who are employed by them. Other crucial main benefits are that once they are associated with the business and have started working then the gates for passive income are opened for them and so they will be able to receive the passive income in the future for a long time even when they are not working.