What is Network Marketing?
Network marketing is also called multilevel marketing (MLM). In his book Cashflow Quadrant Robert Kiyosaki admits to an initial suspicion about this form of personal business.
However, he carried out further research and found that there were many sincere people who had achieved great success building genuine personal businesses with this strategy.
Indeed network marketing is coming more and more into the mainstream of business practices. Some commentators say that it will become the dominant method of marketing for major businesses in the next ten years.
Essentially MLM is simply a method by which a company markets its products. Rather than employing an internal sales team, it delegates the task to people who volunteer to become self employed commission based sales agents.
These sales agents or ‘distributors’ earn money by making sales to customers personally, or from the sales made by other distributors whom they have encouraged to join up. Either way, the basis for commissions is sales made to customers, with the exact commission structure varying from company to company.
Distributors usually pay a fee to get started but this is very low compared to the normal cost of setting up a business. At the time of writing the maximum fee in the UK is £200.
In exchange for the fee, the distributor should received training, support and marketing materials from the company.
Like any business, success in network marketing requires hard work, persistence and there is a learning curve. However, if you choose a good company to work with, you have the chance to build a significant residual cash flow with very low financial risk.
If you are interested and would like to learn more, please view this video presentation from one of the leading UK based companies who offer a network marketing opportunity. |
