What Is a Network Marketing Business?

Over the years, network marketing, otherwise known as multi-level marketing (MLM), has become one of the most talked about topics in the majority of business forums. But exactly what is a network marketing business in the first place? Unfortunately many don’t understand it and they write the idea off, by associating it with illegal pyramids, before they even get an understanding on how it works. Before you make such a decision yourself, you might be interested in knowing what network marketing really entails. This is exactly what this article will achieve for you.

How Network Marketing Works

The best way to answer the question – what is a network marketing business – is to fully grasp how the whole setup works. In this business model, the company manufactures a chain of products that are consumable. In other words, they are products that will be used and then purchased again and again. These may include:

Household products such as soaps and detergents
Health supplements like multi-vitamins
Beauty products such as perfumes, make-up and anti-aging creams.
Once the products are ready, the company uses its own network of marketers to distribute them directly to consumers, rather than utilizing wholesalers and retailers (or middlemen) who then turn around and sell to the consumer. This direct marketing approach eliminates inflated distribution, warehousing and advertising costs.

The network of marketers that distribute the products do so through word of mouth. These marketers are individuals that have chosen to create a home based business simply by telling others about the products they consume and directing them straight to the company to purchase the products. This business model has been around for more than 70 years and includes companies such as Avon, Mary Kay, Pampered Chef and Vemma, among hundreds of others. Each company has their own way of paying the network of marketers that recommend the products, so you would need to look at individual companies to determine which payment method you prefer.

The Benefits

Now that you have the answer to the question, what is a network marketing business; do you understand how it can benefit you? Network marketing provides one of the best work-from-home concepts anyone can find. You have the flexibility to create either a part time or a full time income, without it interfering with what you are currently doing. People are able to balance studies or their current jobs with multi-level marketing because they simply add it to their everyday life by recommending the products to people they think will want them. Add that to the fact that your income is based on what you accomplish and not set in stone by your boss, makes this a very appealing concept.

This marketing method allows individuals the ability to consume the products they love and earn an income referring them to others. Consequently, over the last 70+ years, network marketing has created hundreds of thousands of home businesses for many economies worldwide. Now that you know what a network marketing business is, you can make a clear decision regarding whether you would like to create your own home based business around a network marketing company or not.

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