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by NASP Team
Network marketing has been around for quite some time, with some of the oldest network marketing companies out there claiming to have been around since the late 1800s. In the 1980s, this business model exploded in popularity in the United States, as many people were drawn to its flexibility and low setup costs. And it’s still just as popular today.
But what is a network marketing business, exactly? How does this business model work? What are its advantages and disadvantages?
This article sets out to answer these questions and advise you on choosing a network. So, if you’re curious about network marketing and would like to find out more about this business model, read on…
Before going any further, we’ll provide you with an explanation of network marketing. In short, this business model is based on individual representatives marketing a company and making person-to-person sales.
Most often, these salespeople work from home and choose their own hours.
As the name suggests, people in the network marketing industry will have to build a network of people to sell to as well as a network of other salespeople to generate leads and sales conversion. Some network marketing companies are multi-tier, meaning salespeople are also tasked with recruiting more representatives.
In network marketing, salespeople represent a company and sell their products for them. These representatives then build a network of people to sell to—whether friends, family, or colleagues. The sales representative then takes a part of the money from the sale, with the distributor of the products taking a commission.
But what is networking marketing focused on selling, you may wonder? And the answer is: pretty much anything! Cosmetic items, wellness products, household goods—these types of products and many more are sold using this business model.
We’ve explained what a network company is, but why are so many people drawn to this line of work? The next section will answer this question, while also explaining a few potential downsides to be aware of.
Now that we’ve explained network marketing and how it works, hopefully, you have a fair understanding of this popular business model. But you may still be wondering why network marketing is so popular.
What is it about this business model that attracts so many people? Below, we’ve explained some of the main benefits of network marketing.
Of course, this business model is not without its flaws. Networking company representatives tend to believe that the overall rewards of network marketing outweigh the drawbacks – and so many people are drawn to these companies. Let’s look at some benefits and draw backs in more detail.
Finding a network marketing firm to work for can be difficult. When making your selection, there are a few things you can do to find the most suitable network marketing company for you:
If this article has captured your imagination, you may be interested in trying out a career in network marketing for yourself.
When you become a network marketer, you join a worldwide community of salespeople who have taken on this very same challenge.
In the event that you do decide to look more seriously into joining a network marketing business, keep this article and it’s advice in mind.
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