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SpinDistribute.com Article Directory

The following article was published in our article directory on June 1, 2018.
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What Is Network Marketing?

Article Category: Business

Author Name: Michael Coe

Network marketing is a business model popular with people looking for part-time work and passive income. In network marketing, businesses depend on distributor networks. Distributors, manufacturers, and storage facilities make up these networks or channels.

Businesses built under network marketing often operate as multilevel markets. Payouts are scattered over the business structure in such markets. A few examples of those businesses are Tupperware, Mary Kay Cosmetics, and Avon.

To join a network marketing business or program, one must provide an upfront investment. The amount usually is low and typically costs around a hundred to three hundred dollars. The person will receive sample product kits that he/she can sell. Usual recipients of new investors tend to be close relatives and friends.

Aside from setting up people to sell and buy products, network marketing businesses encourage their participants to recruit other people. Network marketers refer to recruits, which are acquired through this method, as a marketer's "downline." Marketers get cuts from their downline's sales.

One of the challenges of businesses running on network marketing is the provision of compensation in recruiting people. If marketers primarily earn on only recruiting people instead of selling products, the revenue stream will be mired. In addition, the business will be in trouble if they focus more on recruiting since authorities may suspect it as an illegal pyramid scheme.

Business regulatory entities often do not have strict policies over network marketing businesses and programs. Federal and state governments don't even consider them as franchises. People entering the network marketing industry should be cautious because of those facts.

With little governance and restrictions on such business models, people thinking of investing in network marketing businesses don't experience the same level of protection that regular investors have.

Despite those things, you should not fear network marketing. It's a great source of income if done right. Remember the Avon ladies. They're usually housewives and blue-collar workers. And they easily get extra income from selling Avon products.

With due diligence and patience, you can even go up the networking ladder. If you recruit a lot of people, you can have a consistent stream of revenue from your downlines. You have the freedom on how you will earn and how much.
However, still remember that becoming successful in network marketing is all you. You cannot rely on anybody to do all the work for you. The downlines can give you the cash you need, but that cash won't be there if you weren't able to recruit them.
Of course, it doesn't mean that you shouldn't get help. If you're recruited, make sure that you squeeze out all the information you can from your recruiter. Make sure to attend all the free seminars. And then make sure that you meet people that will be useful in the future.
If you can, it might be best to buddy up with an experienced representative. He/she can show you the ropes, which may lead you to the right path. Also, never forget to get some books to further improve your people and sales skills.

Keywords: Network Marketing, Network Marketing Strategies, Network Marketing Business, Network Building

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