What is Network Marketing?
Network/Multi Level Marketing (MLM) is an efficient way of distributing a product or service directly from the company to the end consumer. It is a marketing method, where each person who markets the products or the services is a representative (distributor) of that company, not an employee. A distributor does not work for the company, but works with the company. The business relationship is a dynamic partnership where the company takes care of all conventional activities right from the manufacturing to distribution.
Why Network Marketing?
There are two major reasons why Network Marketing has become a much more viable and a popular distribution method in recent years...and, therefore, an excellent business opportunity.
First, the consumer market has become too difficult to reach. Today's consumer has access to hundreds of cable channels, thus rendering product commercials relatively ineffective. At the same time traditional mass marketing methods are quickly losing their effectiveness. However, people do listen to and believe the people they know.
The success of books, movies and restaurants is largely determined by 'word of mouth' advertising. Network Marketing companies depend on this powerful concept to efficiently market quality products to millions of their consumers.
Secondly, progress in information technology has helped to make Network Marketing more efficient. Voice mail, fax machines, electronic mail, the worldwide web, videotapes/CDs, satellite links, and conference calls have also made communication between large distribution forces within a company rather simple and effective.
Ironically, some of the same technologies that have allowed traditional business to cut millions of jobs also make possible an innovative marketing concept that is offering hope and opportunity to people from all walks of life. Network Marketing uses technology to support people, rather than replace them.