Network Marketing: How It Works

Network Marketing: How It Works

The key idea of the concept of network marketing is a distributor network. This marketing model usually consists of various levels with their own individual payouts. Let’s have a close look at the idea of network marketing, point out its pros and cons and see who can benefit from this technique of leading a business.

Network marketing is the ideal choice for those who aim to build a part-time business with flexibility being its main feature. For example, it can be suitable for students or mothers who are taking care of babies at home. Such businesses are often connected with cosmetics retail, such as Avon, Jamberry or Mary Kay. The most attractive feature is that you don’t have to own a capital to get started. Usually, you get to work after you have purchased a handful of sample products for a few hundred dollars, and these samples already become the means of marketing because you can use them as demonstrations for your potential customers who, in most cases, are friends, relatives or acquaintances.

Network marketing has many benefits, but at the same time, there are some peculiarities you should be aware of. Some people shift the main goal of this business to recruiting others instead of promoting the products. In such cases, you can get dangerously close to turning your small part-time business into an illegal activity. We won’t go into details, but you definitely should conduct a thorough research before embarking on any sort of recruiting business.

As far as advantages are concerned, they are mostly appealing to people who want to do most of the work from home. Usually this option is the most popular along young mothers who are looking after their children. This is the main benefits – you are able to conduct the whole business from your home except for the moments when you might need to meet up with customers.

Another attractive feature is that there is little financial risk involved since you don’t have to invest a fortune to start your business. That’s why it might also be a way out for people who are on a tight budget after having left or lost their job. Finally, this business is just perfect for those who are genuinely passionate about and interested in the things they are selling. For example, make-up lovers will probably find this job not only useful but also enjoyable.

However, the main disadvantage of this kind of job is that it can hardly be compared to a full-time occupation income-wise. You should really put a lot of effort into this endeavor if you want to make a living on it. Another thing is that since this opportunity is open almost for everyone, there might be many people already working in this field in your area, which will leave you with no customers except your closest friends.

You should always think all the things through before going into this business.

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