|Networking is People Business.|
It has been stated that 'word of mouth' is the best form of advertisement. All sales and marketing management professionals agree to its truism. How do we then define network marketing?
I will love to define Network Marketing as the orderly word-of-mouth distribution of products and services directly from the producer to the consumer.
However, as the products or services are purchased, the distributors responsible for those orders are compensated through multilevel in their organization. Hence it is also referred to as Multilevel Marketing. Network marketing is a business model being adopted by organizations as a means of reaching the target market envisaged by the company or organization. It is however based on the fact that budgets for advertisement and ancillary expense that could be channeled into the normal chains of distribution is shared to the independent distributor who generate more sales or leads into the system. In network marketing, the success of the independent distributor is contributory to the over-all success of the company.
More information on Network marketing model will be shared in subsequent posts.