This article espouses the intricacies of Multilevel Marketing, and various aspects involved in this "chain" gamewhere there is a spiraling effect. An attempt is made to understand the entire structure of this unique approach to marketing.
Unlike other conventional companies, which have to pay crores of Rupees as advertising money, the beauty of Network Marketing lies in paying this sum of money to independent distributors, who help them to advertise via "Word-of-Mouth" instead of using advertising agencies. The speciality of Network Marketing is that, every member of the network acts as an independent distributor, where he builds his own network that constitutes part of the core network system.
Conventional companies generally follow the pyramidal structure of earning. In this organizational structure, the people at the top make more money than those beneath them. Pyramidal structure follows the convention, where the CEO generates income from the efforts of each person below, but those workers do not have opportunity to earn according to their equitable contribution of efforts in income generation.
Network Marketing is a method of distribution and compensation that has been utilized in the US for over 50 years and which is now spreading its roots across the world. The Direct Selling Association (DSA), based in Washington, DC, represents the Network Marketing industry. The DSA has existed for more than 100 years. There are in excess of 1,000 Network Marketing firms that distribute over $100 bn a year in goods and services. It is estimated that eight to ten million Americans are either part-time or full-time distributors.
The success formula of Network Marketing is that everyone is a proprietor. But one is not left alone to conduct business operations but is assisted with people to guide oneself. It is a business with products positioned with high quality and a proven system for success where the individuals are self-driven by establishing their own goals that drive them to success. |
