The Network Marketing Question

What is the network marketing question? Is network marketing a scam? Well, it depends on the company!

The network marketing question is very famous these days! You may have heard about network marketing at some point in time in your life. Is it always a fraud? Is it beneficial to join it? It is sometimes referred as multilevel marketing (MLM). Pyramid scheme word is also used for network marketing companies. It is also considered as a freelance work opportunity where you can work as per your schedule. Some experts do not consider business model of network marketing companies as a genuine business model.

Some people do not like network marketing business model because they just do not like direct selling methods; and network marketing always involves direct selling to friends, family, etc. Today, network marketing is a rapidly growing business model in the world. Based on the huge success of companies employing network marketing techniques, more companies than ever are likely to include network marketing as a growth strategy for their business.

On the other hand, it is not easy to pursue with network marketing method when the network of people grow around the world. Let me explain what network marketing is! Network marketing is a promotion strategy of companies which incorporates direct selling to customers through a network of people. In general, there is a fee to join the network of these companies. Moreover, some companies make it necessary to purchase a product or products, to join the network, in addition to joining a fee.

The underlying model that governs the network marketing strategy should be a strong enough model so that no one could exploit it. In the past, many companies, that used network marketing strategy and reaped huge benefits, have failed to deliver on their commitments. A large number of people in my circles are working with companies that sell directly through a network of people. So far they are satisfied and earning benefits.
Some companies offer huge benefits to customers through network marketing strategy.

Such kinds of companies ask its members to purchase expensive goods and join the network. After joining the network of a person, one has to start his or her own network by referring more and more persons to the company. Whenever a member of the network refers a new person to the company, the company pays commission to that person for referring a new customer.

The companies, who use network marketing strategy, generally do not sell their goods or services to customers in a conventional method, for example, through their offices, websites, distributors, wholesalers, etc. Most of the network marketing companies grow by virtue of the network of people that grows with the help of collective efforts of teams that work to earn rewards and benefits. Not all network marketing companies are exploiting people under the guise of rewards and benefits structure. Some of the network marketing companies are really doing well and making people earn based on their performance.

In many case network marketing strategies is considered as a win-win situation where all parties apparently earn rewards and benefits. Nevertheless, there is a need to keenly study the business model of a network marketing company before joining its network because people who promote the products of these companies exaggerate facts to encourage you to join. Network marketing allows us to work as a freelance promoter of the company’s products. So network marketing is a doubtful way of doing business but no doubt it is employing millions of people around the world which is good in this era of high unemployment.

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