What is Network Marketing

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What is Network Marketing

What is Network Marketing

Network marketing, also called network business or network marketing – is a way of marketing with a membership system to market its products. Companies that adopt a network marketing system market their products not to shops or supermarkets but are marketed through members of the company, and these members are referred to by various terms including distributors, consultants, members, etc. Network marketing is a legal and legal marketing method.

In the network marketing business, the distributors will be given commissions according to regulations (called marketing plans / marketing plans) that exist in each company, the commission paid is not only the result of purchasing products on behalf of individuals, but also from purchasing products from each member .

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Network marketing business is a business that is legal, and can be trusted. However, a misunderstanding occurred so that there were several parties who became antipathy towards the network marketing marketing scheme.

Negative news about network marketing is usually caused by:

  • Because of mistakes many people do not understand the difference between network marketing and money games
  • The behavior of some distributors who make excessive promises to consumers and are unethical in conducting promotions so as to make consumers antipathy. Network marketing business is actually a way of marketing that benefits both buyers and sellers and the company. But unfortunately there are some unscrupulous network marketing actors who promote their products to be less ethical c
  • It is wrong to promote business opportunities, for example, to guarantee that consumers will get rich quick, etc., thereby making consumers who do not get results according to claims
  • Being less ethical includes forcing and chasing prospects who are not overly interested
  • The existence of actors who fail and feel disappointed then spread the news that network marketing is bad. To succeed in any field, we must be willing to persevere and try hard. Of course it’s normal if we (especially just learning to do business) find difficulties here and there. Examples of people who do salon business, some are failing, some are successful, so is it really wrong? The salon business itself or the person who runs it?

Is it true that Network Marketing business only benefits those who first joined? NOT TRUE.

In a legitimate Network Marketing marketing scheme, joining first isn’t always more profitable. Many cases in our company for example: if B joins under A but B is far more diligent in developing the business, finally B receives a far more commission than A.

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Money game is a cash game scheme, this scheme has been banned in developed countries, for example in the United States, pyramid companies or “money games” can be crushed by the FTC (Federal Trade Commissions).

Characteristics of money games include:

We are only told to register but do not get the product, only deposit money to people who first joined, and our money is obtained from other people’s deposits into our account.

Even if there are products, the products are just patches. The purpose of the product is just a patch, the price of the product is actually cheap but is sold at a very expensive price and then everything is only money and money like a chain gathering, it should be avoided because businesses like this only prioritize the money without adequate products or services.

If a network marketing always benefits those above / who first joined, we believe the network marketing scheme above is invalid and is a Pyramid or Money Game scheme.

Hopefully this can open your horizons about network marketing.