The products are moved through independent distributors. The distributors are given an opportunity to introduce other distributors to the business.
Products or services are sold exclusively through individual salespersons to end consumers. There is little or no advertising as every sale is word of mouth. The savings of advertising are passed on to distributor consumers. At the same time products are available to consumers at wholesale prices.
The distributors are allowed to make and manage their sales force through “recruitment” and “training” of other participants in order to sell products.
The recruiter assumes the role of a mentor, taking the new recruit under their wing and teaching them the fundamentals of the business: how direct selling operates; how to run the business; how to sell the product or service; product knowledge and use, and effective recruiting techniques.
Three types of network marketing:
*Single-tier Network Marketing
*Two-tier Network Marketing
*Multi-level Network Marketing
A network marketing organization grows stronger when a member recruits or sponsors, another person into the organization. Every new prospect that a network marketer sponsor becomes a part of their downline, and helps to earn commission and bonuses for their sponsor and his or her upline.
Network marketing
