Network marketing and its importance for companies

May 5, 2022 · 5 min read

Network marketing is an excellent option, both for companies and for sellers.

Surely you have heard about network marketing, a very interesting practice that has become very popular. Marketing, as a practice, changes and evolves at dizzying rates. This is because it has to adapt to new technologies and user demands.

If you still do not know what network marketing is, you have nothing to worry about, since today we are going to delve deeper into the subject. In this way, you will understand why this has become an extremely important and, above all, effective practice.

What is network marketing?

It consists of having a network of vendors who offer products without intermediaries.

Network marketing, also known as multilevel marketing, is a type of marketing whereby the manufacturer sells a product to a distributor who has made the sale to a consumer.

It probably seems a bit confusing, but it's easier to understand than you think. For example, traditionally, the manufacturer sells his product to a distributor. The latter sells it to a retail store, which sells the product to the final consumer.

In multilevel marketing, the chain is skipped and it is the distributor who sells to the final consumer. This makes the final price of the product lower, which benefits the consumer and increases sales.

This type of marketing is ideal for those people who are looking to start and start their own business, as it makes them more competitive. But best of all, it is not necessary to have a large capital or infrastructure to market these products.

What benefits does network marketing bring?

It offers a lot of quite interesting benefits.

This type of marketing has a lot of benefits that make it a very interesting option. Next we will tell you what are the main advantages it has.

You do not have to worry about logistics, since it is the manufacturer who takes care of everything.
It is not necessary to make a previous investment.
You will be able to be your own boss, so you will have someone over you.
You are the one who sets your own goals and objectives.
It allows to have much more competitive prices.
There are not many risks, since products and brands that are recognized are usually sold.

What are the disadvantages of network marketing?

Although it is a fairly effective method, it is not perfect and has some disadvantages.

Although it has a large number of advantages, it also has some disadvantages, among them, we can mention the following:

The market could be saturated as there are many sellers who have the same thing. That is why it is important to choose the best possible niche in order to stand out from the competition.
It is necessary to have certain perseverance and organization to be able to get ahead with this method.
A lot of creativity is required to be able to stand out among the rest of the competitors in the market.

How can network marketing be done?

In the event that you want to start a business of this type, you need to know some techniques that can help you. In this way, you will be able to get the sales you need to make it successful.

A blog

Having a blog is going to be a great opportunity for you to sell products. For example, if you want to sell air conditioners, you can create a blog where you talk about them and make recommendations to your customers.

It is not necessary that the blog be of a commercial nature, that is, it can be an informative blog in which you will be able to discreetly sell the products.

As people use the internet more and more, this makes it an excellent opportunity to reach a larger audience.

Social media

Social networks have millions of users around the world, this makes it an excellent alternative for you to promote products.

Whether on Facebook, Instagram or any other social network, you can post about the products and this makes it quite likely that you will get sales.

These are the two most popular methods, however, you do not have to limit yourself to them, since you can use creativity to be able to sell the products in the most effective way possible.

network marketing success stories

There are many success stories in the market that show that network marketing works and can be an excellent option for anyone who needs it.

Avon

Avon is one of the biggest companies using multi-level marketing.

Avon is a company that has been focused on multi-level marketing for many years and has achieved great success. It has a large number of employees and franchises that have been highly successful.

It sells its products in more than 50 different countries thanks to the network of sellers and they earn very good commissions on sales.

Herbalife

This is one of the most important companies in the whole world.

This is probably one of the best known companies in the world that use multilevel marketing. A company that markets nutritional supplements and skin care products, which are recognized worldwide.

Sellers not only earn a commission by selling the company's products, they also earn commission from other types of activities. The company markets its products in more than 90 countries and has more than 8,000 vendors worldwide.

Amway

Amway sells a lot of different products all over the world.

Since 1959, when the company was born, it has opted for multilevel marketing and since then, it has become its main business model. It has more than 15,000 sellers worldwide and operates in more than 100 different countries.

This is a company that sells millions every day thanks to its network of salespeople and that proves that multilevel marketing is a gigantic business that works quite well.