What Is Network Marketing? Important Facts to Know

What Is Network Marketing? Important Facts to Know

Network marketing is used in a wide sense covering the extensive domain of recruiting salespersons to promote products. This is the chain for you to work for product sales. You have to sell your products through this powerful marketing network. Individual sellers get commissions by selling the products of the companies. Simultaneously, these salespersons appoint others to join the marketing network to expand the business. So, it is a type of pyramid selling system that enables the topper sitting on the zenith to earn commissions from his subordinates. This article gives you a gist about what the marketing network is and how it is beneficial for you. 

What Is Network Marketing?

Network marketing or affiliate marketing is a new concept to increase sales through a compact network. It is also called a multi-level marketing system. Here, a single sales representative sells products personally. He is also found appointing more salespersons to sell products for having commissions from the network. This type of marketing is popular in the digital world where everyone can work from home and the office. 

 How Does Network Marketing Work?

Back in the day, people bought products from shops and shopping malls. They had no internet to place orders from home. The situation is now different with the arrival of broadband to process your orders online. The

system depends on the Internet which helps you communicate with many persons from anywhere. In the case of a marketing network, the company hires you to sell its products based on the volume of sales. So, you will increase your earnings by generating more leads for conversion. You have a vast network with a team of 10 to 20 salespersons who work under your supervision. You earn from double sources – by selling your products and getting commissions based on the volume of product sales by others. 

Understanding Network Marketing 

The conventional practice of selling products is replaced with new multilevel marketing, affiliate, and pyramid-type marketing systems. All these terms are co-related and interdependent. The network can be multileveled with a serpentine chain containing multiple participants to sell products. As a salesperson, you should use this multi-tier marketing funnel to recruit more people for lead conversions into sales. Here, your commissions double up because you have several sources to get proceeds. 

Buying and Selling Concept

In the affiliate or multilevel marketing system, you are the buyer and the seller. At first, you buy a product from the network marketing company. You are an affiliate who can earn commissions by referring the brands to others in an extensive cycle. The downline affiliates will then take your brands to another group for sales. Your profits depend on the product sales individually and the commissions from the sales of other representatives. 

What Is Pyramid Marketing Scheme?

A pyramid marketing scheme resembles a multilevel marketing system. However, the former is unlawful to deceive investors. Under the pyramid marketing process, investors motivate another group to invest in a network to have new facilities. Their investments in the particular project bring commissions to the previous investors who have already earned commissions by appointing new members to oversize the network. 


For example, a less important company promotes online educational courses for kids. This agency welcomes more investors to fulfill and implement the project to facilitate students in the future. There will be no product sales. Investors create networks by employing manpower to have the commissions instead of direct product sales. 

Is Network Marketing Similar to Pyramid Marketing Scheme?

Pyramid marketing is a different horizon where you need to use your trickeries to provoke your customers. You play the game of forcing your clients to invest for greater returns within a short period. You are not desirous of expanding your business by selling products. It is a chain system and the topmost ranker is seen earning the chunks of profits putting downline investors in uncomfortable conditions. It is a type of fraudulence and in America, people are restricted to using pyramid multilevel marketing channels. 

Comparatively, network marketing is far better than a pyramid affiliate program. In reality, network marketers build up the community which invites more investors to buy products. Product sales are the first priority for network marketing professionals. 

What to Check to Join the Network Marketing Field?

Network marketing strategies are helpful for you to earn money independently. From home, you can assist others in selling products at competitive rates. Network marketing companies have a reputation and they are eager to recruit people to accelerate the speed in the sale of products. However, you should cross-check several points to test the originality of the company. 

  • Credibility 

First of all, any top network marketing company should have reliability and with good social presence. Customers are aware of the marketing business online. If the company has a good performance record and goodwill, you can think positively. 

  • Turnover 

Annual turnover of the network marketing company should be high to cope with the rat race in the competitive e-commerce world. 

  • Work Ethics 

The work ethic of the top network marketing company is performance-centric. All employees are bound to participate in the overall growth of the business by increasing productivity. A strong work ethic should make employees more responsible with committed to doing jobs with care. 

  • Digital Communication

The recent working environment is digitized enhancing the scope of working in a virtual milieu. Employees must be competent to send emails, receive voice messages, and handle AI and other mobile apps. So, to be a successful network marketing professional, you must have basic knowledge of computers, the internet, mobile apps, and other areas of technology. 


Online mentorship opens a new channel for a novice marketer to convert leads into sales. If the network marketing company offers effective consultation services to improve the mechanism of product sales, it is a genuine approach for you. Experienced consultants can solve your problems by giving you instant tips and guidance. 

Is There Any Risk in Network Marketing?

People should have basic information about the risks in the fields of multilevel marketing, direct marketing, and network marketing. All these domains can make you self-reliant financially. However, you should understand certain risks which can reduce the chance of escalation in your professional career.

 Select Best Product for Marketing 

The investment in network marketing should be target-oriented. You can’t waste your money by selling products that are not worth the value. Your selected brands must have excellent visibility to attract leads. For instance, during lockdown, people were seen buying healthcare products, antibiotics, and health supplements to resist the virus attack. Therefore, you must analyze which product is suitable for promotion in the upcoming days.

Risks of Financial Transaction

The risk in the financial transaction is another concern. How will you get paid by the network marketing company? You need to check previous transaction history, sample invoices, and screenshots of credit history before confirming to start working with companies in network marketing. Finally, the distributors should have licenses to ensure the proper delivery of the products. In this connection, the network marketing company must have legal permits and licenses to do such online business legally. Besides, the payment processing must be flexible and easy for you. Any discrepancy or malpractice is detrimental to the business ethics damaging the reputation of the company in the long run. 

Online Technical Support on Demand

Right now, the online tech support system is a must for any digital marketing company. Your critical problems must delay your product sales. You need the solution and tips from your experts. If it is a technical issue, find the best consultant to tackle the technical error. The top network marketing company should provide 24×7 customer care support. 


Multilevel marketing involves people working in a group to sell products in huge volumes. There will be multiple distributors who also work to recruit more and more competent affiliates to sell the products. Network marketing falls under this category which is a multi-tier network marketing system. The internet wipes out the geographic and language barriers. You can take advantage of creating a new marketing network which gives you the strength to earn money by selling products through the chaining system. It is one of the easiest ways to improve your credit score by opting for this compact multi-tiered affiliate marketing system.


Q: What is direct marketing?

A. Direct marketing is selling products to customers directly without distributors.

Q: What is multi-tier marketing?

A. Here, you need to use agencies or affiliates to distribute your products for sale. You will get commissions on sales percentage.

Q: What is network marketing?

A. Network marketing system is flexible to involve a group of people to promote products for sale. Individual salespersons sell the products and hire more people to expand the team.

Q: What is multilevel marketing?

A. Multilevel marketing system works to enlarge the business by recruiting more salespersons and distributors to sell more products collaboratively.

Q: Why is network marketing beneficial for you?

A. The scope of earning commissions is flexible as you get revenues based on your product sales and the volume of sales done by downline salespersons in your group.

Q: How to join a network marketing company?

A. Go to the site of a top network marketing company to submit your application for membership to become a prospect. You will earn by recruiting more people to sell products.

Q: What is an example of network marketing?

A. Avon and Amoy are two brands to enhance network marketing.

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