What is Network Marketing? How does it Work?

Friends, today in this article we will talk about a business which is very popular and interesting business in today's time. We will tell you in detail about what is Network Marketing? Ans how does it work? Stay tuned till the end of this article. I am sure that you will definitely get answers to your questions arising about the network marketing system. So, let's start this journey.

Friends, if someone is asked what is network marketing? He may not have the detailed knowledge of this format of marketing. But it is certain that he must have heard the name of network marketing. In today's time, if any business is in discussion all over the world, then it is MLM i.e. Network Marketing.

Many companies all over the world as well as in India have adopted the basic mantra of network marketing. No doubt, there are many network marketing companies in India.  Many companies have adopted network marketing by following the network marketing plan to sell products related to their companies. Why should you do network marketing? Before knowing this, it is more important for us to know that what is network marketing after all? So, let us know what is Network Marketing or MLM?



What is Network Marketing?


 "Network marketing is actually a device, a way to get any service or product of the company directly to the consumer. And in this device the consumer buys the products of that company by connecting directly to the company. Under which the company sells that consumer to that consumer. Tries to give benefits directly."

Let us try to understand it in more simple language. The traditional market is already functioning among us. You must have seen that the company has been resorting to many middlemen, brokers (agents), wholesalers (whole sellers), retailers etc. to make any product made by it to the general public. Moreover, to make her product popular among the public overnight, she has been resorting to advertising. Companies get these advertisements from such people who have a lot of name among the general public, the general public follows their living habits. Such as film artist, cricketer, footballer, model, singer, dancer etc.



And when such superstars advertise the products of a company, then people quickly trust the product because of them and they start buying the product. For these advertisements, the company pays exorbitant fees to these superstars. However, there is no responsibility of that super star if this product is sold or not sold after this. In such a situation, sometimes even for such a product, the company has to pay a huge amount for advertising. And if that product is not able to build trust in the public, then the company has to suffer heavy losses.

Similarly, incidents of alterations in the products of the company also come to the fore. When many middlemen between the company and the public, despite taking their share of commission from the company, start rigging the product or open a factory to make fake products. Due to which the general public is unable to identify the genuine and fake products and thus the company has to suffer both public trust and financial loss.

To solve this problem, the Network Marketing Industry has devised a strategy to deliver its products directly to the customers.



It was thought that if an attempt should be made to deliver the product directly to the customer by removing the people who took the product produced from the manufacturer to the customer, i.e. distributors, whole sellers, retailers etc. In addition, the additional and costly cost of advertising should also be saved. And the commission of their share should be given directly to them for using the product, promoting it and selling it.

In this way the original product will be able to reach the customers with good prices. At the same time, bypassing false advertisements by superstars, the consumer himself will be able to earn additional income by taking the lead in advertising those products. This is the reason why TV ads (advertisements on TV) are not shown in network marketing.

 How does Network Marketing Work?



In general, any company has two ways to reach its products to the public-



(1)  Traditional Marketing


(2) Network Marketing Network Marketing (Direct Selling)


(1) Traditional Marketing -

We know Traditional Marketing very well. Under this, the company takes the help of many types of middlemen such as distributor, whole seller, agent, retailer etc. to reach its product to the public. Apart from this, they also get advertisements done by giving huge amount to famous superstars. Influenced by which the customer starts buying the same product from the market.

When the age of the Internet was not so widespread, then the information about the products of the companies could not be found accurately to the consumers. In such a situation, the desired price was collected from the consumers by middlemen, whole sellers, agents.

In the traditional market, goods from companies or factories reach the customers via transport, through wholesalers, agents, retailers. Due to which efforts are also made to collect the commission of the middlemen from the customers. Apart from this, the cost of advertising the product also falls on the consumers.

(2) Network Marketing (Direct Selling)-


Network marketing company delivers its products directly to the consumer. In this marketing, the distributor of the customer is there. The customers themselves promote the products and services. Use. And also advertise to the general public. In return, the company provides a large part of its benefits to its distributors, due to which the distributors of that company get an opportunity to earn extra.

In network marketing, business does not have to be done alone, but with the cooperation of the team members, there is an opportunity to keep moving forward. This business is completely opposite to the tension in the traditional business.

History of Network Marketing


Network marketing was started in 1930 by the great American chemist Carl Rehnborg. He told about the supplementary element in the form of diet in the food that it gives tremendous benefits in health. To make this supplement accessible to the people, he started the first network marketing company named "California Vitamin Company" based on the supplement. Thus, the first network market started from there. When this network marketing company started running well, then the name of this company was changed to Nutralite in 1939.

Network marketing system


MLM or multi level marketing is a unique method of network marketing. Because under this, the customer not only has to buy the product personally but also has the opportunity to sell for him, due to which he is able to bring various changes in his life by taking extra income. In this way, many companies are working closely with direct selling companies through network marketing. In which along with the company its representatives, distributors also get a chance to move forward.


In simple words it can be said that by joining multi level marketing people themselves work as salesmen, distributors, independent traders, franchisees, representatives, consultants, agents etc. Through which the company easily does the work of reaching its products directly to the public. Network Marketing / Direct Selling is a great way to distribute while selling and advertising. Which is completely different as compared to other traditional market. Friends! This is the meaning of network marketing.


Benefits of Network Marketing


Many such benefits are visible in the networking market, due to which by joining this type of business, any person can achieve good network marketing success in this field with good hard work and cooperation of his team members. Let us have a look at some of their benefits-


(1)  To improve mutual relationship


Mutual relationships are good in this business. This is such a business that starts with mutual cooperation and has the potential to attain new dimensions of success. Starting from zero, even after reaching the heights, business runs only with mutual cooperation. For this reason, there is no mutual animosity in this business, but there is an increase in the relationship. Network Marketing Motivation is always available from the experienced members of the team.


(2)  Time management


The most valuable thing in our life, if any, is only time. And this is taught in network marketing, how to make good use of that time by taking time out of your routine. Anyway, most people's day is wasted in useless things like TV, mobile phone, gossip and unnecessary comments on social media.



This is a network marketing skill only. Those who come here change their habits and always get inspired to move forward with positivity in life.



Dr. APJ Abdul Kalam sahib has also said that- "We do not change our future but we can definitely change our habits. One day these changed habits can change our future."


(3)  Increase in positive thinking


Tension, fear and negativity build up very quickly in the old marketing style. But the effect of network marketing is such that people come to it and learn to live a life full of positive and cooperative spirit. The spirit of mutual cooperation is such that the perspective of the people associated with it changes.



(4)  Extra income


The source of additional income is available by joining such a business. If you go with the company with good hard work and dedication, then unlimited income can be taken.



(5)  Income to be in ascending order


It is normal for the salary to become half of the salary after retirement in a government/private job. On the contrary, if you have worked hard for a few years in network marketing by standing with a reliable company, then you can get a permanent source of income. That too in increasing order.



(6)  After a time, less work and more income


This is a specialty in this type of business that, when your team becomes big enough and many active leaders become in that team. Then your work becomes very less. Rather, the income starts increasing continuously. Whereas this is not the case in government/private jobs. Rather, your salary and other facilities are reduced in this.



(7)  Personality development


One of the good benefits of joining network marketing is that people are provided with network marketing courses, books and suitable guidelines by experienced members (through uplines). Like how to tell network marketing plan? How to meet new people? How to motivate the younger ones, how to awaken the spirit of mutual cooperation etc.



(8) Increase in confidence


Increased confidence is one of the most important advantages of this business. Along with increasing your income, you act as a motivator for others. The life of others is made because of you. People always go among their members with positivity and increase their enthusiasm. As a result, you become respectable among them. And this confidence comes in handy in times of other difficulties in life.



(9)                    To receive training for whole life


In this way, along with network marketing, the formulas of success in life are taught here. These things are very important for life. To stand strong in every walk of life, one gets to learn everything that is not taught outside or in any college.



(10)                Opportunity to be an inspiration to others


One good thing to learn from network marketing is that by coming here you learn to do leadership. You learn to help others here. Learn to give motivational speech to your team. You emerge as an inspiration to others. Which is very rare in today's stressful life. Motivate others by coming on stage is not less than a big achievement for you and your team.


(11) Communication skills

After joining network marketing, you learn to speak your words effectively in front of any person. By sitting among the new or old people, you learn to feel free to tell the plan of your network system. On this pretext, you learn to effectively present many types of issues in your life in front of others.



(12) People Skills

There are many such good habits in network marketing, one of them is practicality. Which will work for you throughout your life. Because in network marketing you work with people, the biggest advantage is that you emerge as a practical person. People want to meet you and talk to you, even personally you start settling in people's hearts.



(13) Passive income coming

Generally income comes in the society in one way only. That is, if you keep working, you will continue to earn income. The day you stopped working, consider the source of income also closed. Meaning such income is called active income.



Network marketing systems Another type of income is obtained in network marketing systems. Which is passive income i.e. you will continue to get income even if you stop working. Rather, it will keep on coming in increasing order. Once a team is formed in network marketing, this passive income starts coming, whether you work or not.



Your business continues even if you are not in this world. Your team works for you, even when you are not. In fact, the team works for itself, but indirectly the work goes on for you as well.



(14) Help to Other

When a new person comes in this market, the whole team goes ahead and helps him. Whereas in traditional business, a businessman is engaged in pulling the leg of another businessman. In network marketing, people work for each other's success.



(15) Financial Freedom is available

Through this business, you can achieve financial independence in 3 to 4 years by working hard and diligently. The magic of network marketing system is such that you can earn as much money as you want.



(16) There is freedom of time

MLM is such a system, which gives us freedom of time. Also, in this type of marketing, you can go anywhere freely because you do not have a fixed office where you have to go continuously. You can work whenever you get time. What's more, your earnings continue even if you don't work.


(17) Your prestige increases

Talking about respect in network marketing, you get it like big leaders and actors. If you are successful in this system then people take you head-on-eyes. welcome you. Lots of people stand in line to meet you, take photos with you and get autographs etc. By meeting you and listening to your speech, people take inspiration from you and follow you.



Network Marketing Education and Motivational Programs are organized by calling you as a Motivator. Where people come after buying tickets to hear and see you.

(18) Friendship with good people is

Since network marketing is the new business of today's era. That's why you have to meet new people everyday. The special thing is that in this business you meet people who want to touch new heights in life with positive thinking and also know how to inspire each other. Together it seems that "nothing in life is impossible."

(19) Presentation skill

In network marketing, people learn to present their words and their plans in a better way. In which you learn the best use of board presentation, laptop presentation, paper presentation etc. This art of yours makes you stand out in front of everyone by making you stand out from the crowd as a special personality.


How to work in Network Marketing

Network Marketing/Direct Selling is one of the emerging magical business of emerging India. That is why it is also called multi level marketing (MLM) along with network marketing. Because people shy away from coming in this business. Because after coming in this, it is a big challenge for them that how to be successful in network marketing? This is often due to lack of information. Therefore, if you are doing this business and have taken care of the following things, then understand that your question will end that how to be successful in network marketing? So let's know what to do to be successful in network marketing -



(1) Understand the principles of the company well

People are initially nervous to join you. That is why first you should keep complete information about the product of your company, only after collecting all the information related to the company, meet new people so that you can easily remove the fear of their mind. Try to keep little information related to the company.


(2) Pay special attention to the sale of the product

You pay attention to the complete information about your company's products as well as their sales. So that people can understand its quality. Use first then trust. Because when you use and share your experience with others only then people will believe in you.


(3) Prepare new representatives

Since this business is based on the buying and selling of products. And the higher the sales of the company's products, the more your income will be. That is why try to be ready to buy and sell good 'plan shower' and products in your group. So that with the cooperation of each other, the turnover in your group can be maximum.



(4) Build a great network

Even if you want that you do not work in future, the income should keep on increasing. Then to do this, you have to work hard for a few years with full dedication in your team ie Downline, energetic, positive thinking, passion to move forward, big dreams and some leaders who have the determination to work diligently for those dreams. Have to prepare.


When a lot of active leaders in your team start touching new dimensions then 100% they will start getting big income. You also have to follow some basic conditions. As a result, you will also start getting consistent income whether you work or not. This is the wonder of online network marketing.

(5) Select the plan shower from the interview

You can do an important work to advance yourself and all the members of your team in network marketing. And that is to first interview some energetic people of your team, then according to their ability, assign them the task of doing a plan show. Give them complete information about network marketing. Also, keep boosting their morale from time to time.



(6) Work together with the team

The most important thing to keep moving forward in network marketing is to work closely with the team members. For this it is necessary that you first form an enthusiastic team. Make sure that your team members are dedicated as well as excited to work with you step by step. Also, have the courage to face all the difficulties that come along the way. No matter what the difficulties, if you have the spirit to move forward together, then nothing can stop you and your team from reaching new heights of success in this network marketing.



(7) Encourage the people of your team to buy and sell products

This type of business is dependent on independent distributors and active customers only. Since it is also called Director Selling Business. That's why by forming your group, keep encouraging the members to buy the product and also do retail sales to them.


Is it easy to connect to any network Marketing?

Yes! There are no special conditions to join any network marketing company. All you need is the will to achieve something. Let us see why it is easy to join and work with any network marketing company-


(1) To be a risk-free trade-

There is no big risk in this type of business. The reason for this is that you do not have to invest a huge amount i.e. millions of crores in any such network marketing. That is why there is no fear of any kind of loss in it. Rather, starting with very little money, lakhs and crores can be earned.

(2) The absence of any time limit—

It is easy to get into this type of business because there is no time limit for you. You can do this at any time. For example, to teach your business plan to someone, you can decide at any time ie according to you.



(3) No Office (Unlimited Area)-

You can do this type of network marketing in any area, place. For this you do not need to open any office or shop. Whereas this does not happen in any other business. In network marketing, you yourself are a moving shop. Just say that wherever you go, your business will also go there.


(4) It is not necessary to have higher education-

No higher education is required to join this type of business. You should have big dreams with the will to work hard to make them come true. Because history is witness. There have been big industrialists, millionaires, billionaires in the world too, they had not received any higher education. The only difference between them and those who got higher education was that the dream of the people who got higher education was to do any job under someone. But on the other hand, his dream was to become a master, to give jobs to the educated unemployed people and to advance the economy of the country.



(5) No age restriction-

There is no age restriction for you in any such business. Whether you are in your 20s, 30s or even 65 years old. This happens because in this type of business you get a lot of support from your team. Because the more energetic, hardworking, capable your team is, the more you will get rest. And the income will also continue to be received.



Future of network marketing in India

Network marketing started in India in 1995. Since then, it is a fact that there has been a flurry of network marketing companies all over India. Due to the wild running of these network marketing companies in India, the Government of India has started on 12 September for the growing companies in India.

Special guidelines were issued in 2016. Since the release of the guidelines for network marketing, there has been a flood of such companies in India. What is the future of network marketing in India? In response to this, it is being said that the promotion of these network marketing companies is likely to be even faster. According to the report of the Government of India organization FICCI and KPMG, by 2025, the turnover of the network marketing industry can be up to 625 billion (62500 crore). That is, the future of direct selling in India is looking golden in the coming few years.



In the context of Network Marketing i.e. Direct Selling, scientist and former President Dr. APJ Abdul Kalam has also said that- "Network Marketing is the most growing business of the 21st century. In which every youth should be involved globally otherwise they Will never be able to achieve the best of his youth."

Network marketing –How much Truth, how much Lies?

Truth- Network Marketing or MLM is a well thought out business plan or medium with the help of which all network marketing companies sell their products. If we see, in network marketing, people directly connect with the company and deliver the goods (products) to the consumer. There is so much power in the business of network marketing that thousands and millions of people can become millionaires as soon as possible through this.


Lie- Network marketing is a very good industry. But due to some false and fraudulent network marketing companies in the world, the name of network marketing has become infamous. Some MLM companies disappear by showing big false dreams, taking money from people, due to which the name of other network marketing companies operating in the country gets maligned.



Many companies come and entice people by showing their binary plans (Chain System Plan) and run away with their money overnight. And when their lies come to the fore in this way, then people develop negative thinking towards such companies.


What to take care of when choosing a Network Marketing Company ?


What are the precautions to be taken while choosing a network marketing company? What to take care of when choosing a Network Marketing Company?

How to choose a good network marketing company before adopting any network business? So friends, we want to tell you that before joining a good network marketing company, you should take care of some main and important things which are as follows:

(1) The principle of the company must be true

Before joining any network marketing industry, you should try to know well what is the principle of that company and how it works? The company is really giving that facility to its members, which has been mentioned while showing the plan.


(2) Keep the news of the head office and branch of the company

When joining any network marketing company, the owner of that company, check the reputation of that company. If that company is not fake somewhere, that's why find out complete information about its head office and its branch.

(3) Check whether the investment is right or not

Before investing your money in any MLM company, make sure to check whether the person whom you have trusted actually works in that company or not. Somewhere it is not a fraud. Be sure to know about the product on which you are investing.

(4) Do not fall in the greed of false dreams

You should have complete knowledge about whether people will really benefit from the products of that network marketing company. A company that does not have a better product and without any principles, if that company is just showing dreams of connecting people and becoming a millionaire, then beware of such a company because such companies doesn't last long. These companies cheat people in the name of direct selling.

(5) Know how the people associated with the company are

There are many good network marketing companies that have very good people. Good people mean positive thinking people. Because a positive thinking is awakened in the mind of people who associate with such thinking people. And it is certain that to get success in any work, one has to have positive thinking.


There are also some network marketing companies in which only people are lured and added. They have neither a strong base nor any subject plan.

(6) Whether training is being imparted in the company

If you want good returns from the company in future, then check thoroughly whether the training of network marketing is being done properly or not. Because any company is successful only when the people working in it get regular training.

Training doesn't just mean adding a lot of people to that company. But they are also given training to buy the products of that company as well as to reach the people. Because the future of any company in the world is not possible without good products.

(7) Product information of the company

The quality of the company's product should be good. Make sure that the company is not selling substandard goods of its own or any other company. Whether the company's products are fit for the general public (consumer) or not. That's because if you join such a company, you will never be able to effectively ask others to join your team.

(8) Know whether there are good leaders or not

It is very important to have good leaders in every network marketing company. Talented leaders of such companies share the secrets of network marketing well with their team members. The success of any network marketing company depends on the talent of the leaders working in it. If there are good leaders, then the newcomers to the network marketing system will be able to get good training. As a result, it will be easy to set new flags of success. No network marketing company can run on any condition without effective leaders.

Friends! My personal opinion is that today's youth do not get money, at least for Personality Development. Must have a few days' experience. Because today everything you have learned in this article. After reading you will definitely agree that if after joining such companies you will be tactful, big dreamer, way of talking to people, increased confidence, dedication towards work, helping people, positive thinking, effective Become the master of personality. Then you should definitely get experience by joining a good company, just for a few days. With this you will also get money and even if you do not get it, then you will definitely get the experience of living positively in life with network marketing.

The only thing you get to learn from network marketing business is that you have to work with regular hard work, dedication, it is not a short cut to become rich overnight. In this, you have to choose the right company and then you will have to work hard. It has also been said that- "there is no free lunch in this world" i.e. "Nothing is available for free in this world."