What Is Network Marketing? Meaning And Definition
Here I’m Explain ” What is network marketing, meaning, and definition“. Here I’m also telling about legal and illegal networking business, direct selling, MLM Business.
What is network marketing or What is direct selling? many people think about this and also called MLM marketing, direct selling, chain system, pyramid system, etc. But Network marketing is a marketing model, a marketing model whereby a company communicates its products and services to the people. There is a marketing model to spread among people, the fastest way a company can reach its products and services between people. This is called network marketing.
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How network marketing works?
I think you understand that what is network marketing or what is direct selling. Now I tell you how it works. In direct selling, the whole game is word of mouth promotion. Now you must be wondering what is this “word of mouth”? Let me explain you with an example. You have been recounting things since childhood like you saw a movie and you liked it so much, what did you do that you told your friends about the movie and must have praised that movie a lot. Now because of your praise, all those friends saw that movie. Now you promoted that movie, but did you get its money? You did not get the money to do all this. But what the direct selling model says is that if you like something and you did its marketing word of mouth marketing then you will get its commission. But what is another advantage in this because it is the only benefit?
What happens in networking business if I told you about something and you did not know about this thing, now I told you about a product that there is a multivitamin that can increase your energy and you Used the product and you also got energy from it. Now due to this recommendation, the company will give you some commission when the product is sold because the company has been sold due to you.
So now what the direct selling model says is that if you work inside a network and whatever sell you start today, the company will give you a percentage of that and you will become the distributor of the company that the company will get ten thousand Turnover or one lakh or one crore throw your, you will get a percentage.
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Types Of Network Marketing
There are two types of companies in the market, one is legal and one is illegal. The legal direct selling company, which always gives money on turnover, but there are some companies that pay money only for adding people. This company is illegal, which gives money only by adding people, it is also called a Ponzi scheme. So you have to understand the difference between direct selling and Ponzi scheme. There will be a promotion of products and services in direct selling. If direct selling generates turnover, then money will come. And the turnover inside the Ponzi scheme will be above the investment. People will be investing money and there will be no promotion of products and services and even then there is money, so understand that this is all wrong and it is a Ponzi scheme.
Read Also – Direct Selling, Network Marketing Guidelines
I hope you liked this post and you will follow all these things to be successful in the direct selling business.
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