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Definition: Network Marketing is a business model in which a business is built by a distributor network. The distributor network is responsible for the growth of the business. Since the pay outs for these businesses occur usually at more than one level, the business is thus said to be multi-level.

It can go by many names including: Referral marketing, Cellular marketing, Pyramid selling and Affiliate Marketing.


Network Marketing is a kind of business that is quite common nowadays. For people seeking part time engagement, it is a good opportunity. The business is very flexible and hence convenient in most cases. Many companies do network marketing such as Avon of North American.

In network marketing many independent agents who sell directly, constitute the distributing networks, that delivers the products and services to customers in various places. Many of the Network marketing systems are built on tiers, that determine how extensive the distribution network is. For instance, there may be a two tier, single tier or a multi-tier network. The more the tiers, the more the levels of a sales as well as distribution network. In a single tier model, the network creators are paid on the basis of the volume of sales they make or the size of traffic they direct to an affiliate website or blog which is simply pay-per-click. In a two-tier system, the participants are paid on the basis of how they direct traffic to a merchant site or by direct sale. The multi-tier works in a similar manner with the two-tier, but it entails many tiers. Due to multiple pyramid schemes that have been recognized and criticized in various countries worldwide, the single tier network marketing system remains to be best and is less liable to such schemes.

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What to consider when evaluating a network Marketing Operation?

  • Speed of selling- Are you able to sell the products of a given merchant at a faster rate so as to make timely returns?
  • Past company record- Consider the record of the company whether it has been operating well. Consider the profits margins and if it treats the employees well.
  • The Products- Consider the products being offered and examine whether om a personal level you can buy them and if you may have potential customers and whether you will be comfortable and enthusiastic in selling them.
  • Promotion methods- The way a given product is promoted is quite essential. Consider whether there are any restrictions on the product that can impact its promotion as well as advertisement.

How to succeed in Network Marketing?

1. Do a thorough investigation and then choose a good company

Check the reputation of the company, the duration of operation, the volume of sales and the amount of its assets. These will be indicators of the performance of the company.

2. Investigate the company’s CEO and check whether they have good leadership skills that will drive the company to profits.

A good company CEO/Leader, can booost the confidence and moral of its employees.
So while choosing the company do a background check of the CEO and his educational qualifications, which will ensure that you are in good hands.
3. Engage the recruiting personnel

As deep as possible, ask the recruiter a lot of questions concerning the company and the business. Gather this information so as to make decisions on what is expected of you and what is your expectations on return.

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4. Be careful to note if the business is a pyramid scheme

If the company is making a lot of money from recruiting the distributors than from selling the product, you should start suspecting and then take a step to investigate further.

5. Plan your engagement

Make a plan on how, which and when concerning the market, the products and the strategies to be involved.

6. Invest in the required skills

Master the skills needed in marketing so as to improve your sales. You can get a mentor, coach or trainer to assist you in improving your skills so that you may employ them to earn more commission. So, it requires your time and concentration like any other course with about 8,000 hours. Additionally, there are resources which have been developed by some people in the industry that can serve as a curriculum for the people interested in joining the industry.

7. Be unique

For you to be considered over other distributors, you must offer something special. This might be the way you handle clients, ethics or etiquette. You can offer somethings of great value and even establish reward programs so that you many increase the number of clients.

8. Make follow ups

Follow ups can be rewarding. By establishing a simple follow up program for your clients, you establish a good relationship and thus you create a future market for your goods or products.

9. Know your market well

The knowledge about the market is essential in selling the products. If the market is wide, the better. Do all it takes to convince the market to buy the products. Get acquainted with them and set up a strategy to reach them. Simply focus more on your market.

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Common Mistakes made by Network marketers.

  1. Too much obsessed by money– Many people who join in network marketing usually focus on the benefits and not service delivery. This becomes a disappointment at last because they are pursuing what they don’t like or rather enjoy doing.
  2. Overworking– Joining many affiliate programs can drain you and lead to a failure. Just focus on few of them and then work efficiently to make gains from them.
  3. Poor tracking– Track all your sales and make claims on them. By not tracking, your sales record may end up getting lost
  4. Engage yourself in testing– Before engaging in product or service distribution, put yourself in the shoes of the customer and analyze if you could by the products or services.


Network marketing is a multilevel business strategy that a non-salaried participant sells a given company’s products for a commission. Though it has various structures, the single tier is the most appropriate and less linked to the pyramid schemes that mar this industry. For one to be successful in this industry, they must take their time to gain the required knowledge and skills. Besides this, they have to investigate the company in question, make intensive research about the market as well as plan carefully on how to market and make high sales volume. Since the sector is a bit risky, the participant should be in a constant watch for any suspicious action. Test your products, make follow ups, track you’re your sales volume in quest to avoid failure. Finally, do what you like and enjoy!

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