Introduction to Network Marketing

Often network marketing business opportunities’ presentations include the potential of high passive income, super cars, and luxury lifestyle trips. People may feel that “it is too good to be true.” Therefore, when we mentioned about network marketing, there are usually 2 common misconceptions about what network marketing really is:

  • Pyramid scheme
  • Get rich quick scheme
Pyramid scheme
The Network Marketing plan somehow looks so similar to pyramid scheme investment.

Then, what is network marketing?

Network Marketing is a business model that leveraging the power of one-to-one relationships to market and distribute products directly to consumers. It is also known as direct selling, word-of-mouth marketing or multi-level marketing.

How does network marketing company work?

Network marketing is a marketing model that a company adopts to move their products through the word of mouth instead of commercial advertisement. Product is directly move from distributors to consumer instead of going through many parties in retails.

Therefore, in return the company provides compensations, incentives and bonus to reward the distributors. At the same time, a distributor can build his own sales force by recruiting and sponsoring new distributors into his organisation.

Comparison between conventional business and network marketing business 

cdm
Taken from Direct Selling  Association of Malaysia

Frequent Asked Questions
Should I look for new company so that I can be at the top of the distributors line?

“Network Marketing is a fair opportunity; therefore it does not matter at which point of time you join the company. It is important that you join in and start building your organisation. With hard work and grit, you could well be growing much faster that your spline sponsor.” (K.Sow, 2004)

How long I need to take to earn a good income?

Network marketing is not a place for quick money. There is no replacement for hard work and effort. Earning good income will solely depend on the time and the effort you put in to sell the products and to recruit new distributors. From my personal observation, a distributor would take few years to build his organisation before he can earn a great amount of passive income consistently.

I don’t know how to sell, can I still do well in network marketing?

Your current skills level does not really matter. What really matter is the amount of commitment you are willing to give to your business. Skills can be gained through training and learning.

Reference

  1. What is direct selling? http://www.dsam.org.my/industry/what-is-direct-selling
  2. K. Sow (2004). Going the Distance in Network Marketing. Selangor: Oak Publication.

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