Characteristics of Network Marketing

Characteristics of Network Marketing –


Till now you know a lot about Network marketing. In this blog, we will tell you about the characteristics of Network Marketing.

Before that, let us get a brief on what Network Marketing is all about. Well, Network Marketing is a hierarchy of people which forms a pattern of a flow chart. The top people in it include the company members, now company members find people who want to sell their product. They give them their products at a price. Now when they sell it, they add their profit into it and whatever the profit is made is kept by them. With this, they also make their own downlines, where their downlines also invest in the products and sell to others. Now whatever profit they make a said ratio of profit will be given to the distributor of the downline.

The best and most effective part of this business is that you get to work from home and you don’t even have to leave your regular job for this. Even if you are a retired person or a homemaker, you can join this business and start your career for a little extra income.

Moving on, let us discuss the characteristics of the Network Marketing –

  1. Direct Sales
  2. Independent Business Owners
  3. Selling Philosophy
  4. System of hierarchy
  5. Minimum advertising
  6. Salary not fixed

We will be knowing in-depth about these 6 characteristics of Network Marketing.  Let us begin one by one –

  1. Direct sales -
    It means that network marketing does not involve any channel of distribution rather it has members or individual participants who are paid their commission whenever they make a sale.
  2. Independent Business Owners -
    IBO are individuals and they are called so because they sell the products or do their work as if it is their own business.
  3. Selling Philosophy -
    It means that their only main motive is to recruit and sell their products. At times, they can even trick you into becoming a part or to buy the products. Their main aim is to earn as much commission they could.
  4. System of hierarchy -
    This whole network marketing works on hierarchy. A person recruits someone under him, the other person will recruit someone under him and this chain will go on.
  5. Minimum Advertising -
    In network marketing, there is no or very less advertising because it is considered that personal selling is more beneficial than advertising and also advertising requires a lot of money to be invested.
  6. No Salary -
    There is no salary system as such. The participants or the individuals get their commission to perform a certain task. They get commission only when they have made a sale.

So, these are the characteristics of network marketing which will help you get more knowledge on the subject. We hope that this will help you make a firm decision on whether or not you want to become a part of this.

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