What is network marketing?


Many know about what network marketing is. Some people even once worked in such a system. For example, during periods of crisis, this way of earning often becomes the only way out of a difficult situation. Networking or multi-level marketing is a system for the sale of goods, which is based on the involvement of independent distributors. The income of each partner in it depends on two indicators. The first is the quantity of the goods sold. The second is getting interest from referrals. Referrals are attracted partners. The more their income, the higher the income of the person who invited them to the network. About what network marketing is, you can argue endlessly. This direction has always been criticized.

First of all, he is blamed for the similarity withfinancial pyramids. Although it would be more correct to say that these financial pyramids are like MLM. A multi-level system, at any moment, can turn into one of fraudulent schemes. This has already happened, as a result of which a number of states had to pass laws to limit such activities. Network marketing, in the first place, should be focused on the sale of products. If it turns out that the first place is attracting referrals, then this is a fraudulent system. Its essence is extremely simple. First, a group of newcomers is recruited, which are offered fabulous incomes. Then they buy the products of the company, which they must sell. Not knowing the intricacies of such activities, they can not provide the required level of sales. The goods are not accepted by the company. Thus, the sale is fraudulent. Often, such organizations offer paid training.

In Russia, many people did not understand what isnetwork marketing. Because most schemes of this kind turned out to be elementary fraud. Network marketing in Russia was spread in the 90s. It was a difficult time for the country, when everyone tried to survive as best he could. Some individuals, focusing on the experience of Western countries, decided to create network companies. Sold such companies absolutely everything, from products to household chemicals. Most organizations were built on fraudulent schemes. Despite all the criticism of network marketing, it is a real business and gives an opportunity to get a good income. But only if the system is reliable. Of course, not everyone will succeed in such activity. Personal sales are created for people who know how to sell and establish contacts. This is a system for leaders. It is believed that only 5% of people possess the skills of excellent traders.

Network marketing allows you to open your businesspractically without capital investment. However, it requires perseverance, patience and time. Only after a few years of work can a person get a good return on their activities. However, this is typical for other activities. To answer the question about what network marketing is and how much revenue it can bring, you have to look at Amway. This is one of the leaders in the niche. In the history of the organization there were both litigation and various accusations, but it survived. Amway products are in demand in many countries of the world. Because they are qualitative and necessary. Also known as NSP. Producing a useful product, you can be sure of success. MLM companies are very mobile. They can survive even the most severe financial crisis. It is noted that in difficult years, when many firms declare themselves bankrupt, multilevel organizations are quietly existing. This is due to the specifics of their structure. Such systems are very flexible and do not require additional costs.

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