By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Marketing In Asia
  • Marketing
    • Viral
    • Expert Opinions
    • News & Trends
    • Research
    • Market Podcasts
    • Market Videos
    Marketing
    This category deals with best news and updates on marketing and branding news and events.
    Show More
    Top News
    Ankita Thakur
    Marketing in Asia Presents an Exclusive Interview with Ankita Thakur, Group Head of Marketing, MoneyHero Group
    2 weeks ago
    Mary Reschar, Head of Product Marketing, Fluent Commerce
    How retailers can prepare for the rise of Gen Zalpha
    2 weeks ago
    employees brainstorming in office
    Are coworking spaces the best way to keep up the next generation of Malaysian workers engaged?
    3 weeks ago
    Latest News
    Marketing in Asia Presents an Exclusive Interview with Carine Chin, Head of Corporate Marketing, Etiqa Insurance Singapore
    13 hours ago
    Marketing in Asia Presents an Exclusive Interview with April Tayson, Regional VP INSEAU at Adjust
    7 days ago
    How conversational commerce benefits marketers
    1 week ago
    Marketing in Asia Presents an Exclusive Interview with Andrew Monu, VP of Marketing, LinkedIn
    1 week ago
  • Startup
    • News from Startup world
    • Startup Stories
    • Trends and Opinions
    • Startup Podcasts
    • Startup Videos
    Startup
    News and articles from startup and venture investment world
    Show More
    Top News
    Japan’s Evolving Booze Culture: A Market in Transformation
    Japan’s Evolving Booze Culture: A Market in Transformation
    7 months ago
    text
    Safe Space™ announces partnership with National Healthcare Group as it continues to boost employee support and wellbeing
    8 months ago
    Sakshi Kalani Founder & CEO of Savy Click and Jaipur Unfolded
    AI-Powered Analytics: Sakshi Kalani on Influencer Marketing in 2025
    8 months ago
    Latest News
    Byron J. Fernandez: Minimize the stress of business crises with strong CX
    6 months ago
    Vedant Mahajan Acquires Stake in Flite: Transforming Event Technology with Innovation
    6 months ago
    Navigating the Digital Economy and Tax Challenges for SMEs
    6 months ago
    sehatUP Launches India’s First Integrated Digital Health Clinic, Pioneering Holistic Healthcare
    7 months ago
  • Business
    • Feature Stories
    • News
    • Business Podcasts
    • Business Videos
    Business
    News and press releases from business world of Asia
    Show More
    Top News
    Mary Reschar, Head of Product Marketing, Fluent Commerce
    How retailers can prepare for the rise of Gen Zalpha
    2 weeks ago
    Aaron Crowe
    Modern retail marketing technology solution allows businesses to deliver mind-blowing numbers of offers in real time
    3 weeks ago
    employees brainstorming in office
    Are coworking spaces the best way to keep up the next generation of Malaysian workers engaged?
    3 weeks ago
    Latest News
    Marketing in Asia Presents an Exclusive Interview with Carine Chin, Head of Corporate Marketing, Etiqa Insurance Singapore
    13 hours ago
    Marketing in Asia Presents an Exclusive Interview with April Tayson, Regional VP INSEAU at Adjust
    7 days ago
    Marketing in Asia Presents an Exclusive Interview with Andrew Monu, VP of Marketing, LinkedIn
    1 week ago
    Marketing in Asia Presents an Exclusive Interview with Ankita Thakur, Group Head of Marketing, MoneyHero Group
    2 weeks ago
  • Society
    • Inspiration
    • Destinations & Travel
    • Food & Gourmet
    • People
    • Young Voices
    • Society Videos
    • Society Podcasts
    Society
    News and articles from and for societies around us
    Show More
    Top News
    Smashers Sports Acquires Delhi Franchise of WPBL: A Game-Changer in India’s Sports Entertainment
    Smashers Sports Acquires Delhi Franchise of WPBL: A Game-Changer in India’s Sports Entertainment
    5 months ago
    Resorts World Cruises Sets Sail from Dubai with New Luxury Gulf Voyages
    Resorts World Cruises Sets Sail from Dubai with New Luxury Gulf Voyages
    7 months ago
    Australia luxury property
    Australia’s Luxury Real Estate Market Soars as Affluent Buyers Seek Waterfront Dreams
    7 months ago
    Latest News
    From Taboo to Triumph: How Malaysians Are Transforming Their Intimate Health Journey
    2 months ago
    Top 5 Misconceptions About Antibiotics Malaysians Need to Stop Believing
    2 months ago
    Eagle Eye Reveals Impact of Loyalty Programs on APAC Retailers
    2 months ago
    Elevate Your Haircare in 2025 with Jung Beauty’s Luxurious Camellia Edition Treatment
    5 months ago
  • Press Release
  • Awards
    • MIA Impact Circle Stellar CxO 2023 Malaysia
    • MIA Impact Circle Stellar CxO 2023 India
    • MIA Impact Circle Stellar CxO 2023 Philippines
    • Australian Women in Business Excellence Awards
    • MIA Impact Circle Stellar CxO 2024 Singapore
    • Mia Impact Circle Stellar Cxo 2024 Hongkong Award 
    • Mia Impact Circle Stellar Cxo 2024 Indonesia Award 
Search
Technology
  • Hot
  • Trending
  • Editor’s Choice
  • NSFW
  • Reactions
  • Authors
  • Viral on Internet
Other Pages
  • My Bookmarks
  • Customize Interests
  • About Marketing In Asia
  • Business Register & Login
  • Web Stories
  • Videos
  • Disclaimer
  • Terms of Service
  • Privacy Policy
© 2024 Marketing In Asia Sdn Bhd. All Rights Reserved.
Reading: What is Network Marketing and How Does it Work?
Share
Sign In
Notification Show More
Latest News
Phishing concept
Singapore, Indonesia and India among the most concerned about falling victim to financial phishing scams
Press Release
MOU Signing Perhumas x Amec
PERHUMAS and AMEC Sign Memorandum of Understanding to Strengthen Data-Driven Communication and Strategic Evaluation Practices
Press Release
Carine Chin
Marketing in Asia Presents an Exclusive Interview with Carine Chin, Head of Corporate Marketing, Etiqa Insurance Singapore
Business Interviews Marketing
Fanly Tanto, Country Director, Indonesia, Google Cloud, unveils Google Cloud's “Indonesia BerdAIa” program with 15 industry-leading Indonesian organizations
Google Cloud Unveils Indonesia BerdAIa, a Cross-Industry Program to Co-Create Enterprise AI Solutions for Real-World Impact
Press Release
Mike Worden
lution expands leadership team with appointment of Mike Worden to new Chief Media Officer role
Press Release
Aa
Marketing In Asia
Aa
  • Hot
  • Trending
  • Editor’s Choice
  • NSFW
  • Reactions
  • Authors
  • Viral on Internet
  • My Bookmarks
  • Customize Interests
  • About Marketing In Asia
  • Business Register & Login
  • Startup Register & Login
Search
  • Marketing
    • Viral
    • Expert Opinions
    • News & Trends
    • Research
    • Market Podcasts
    • Market Videos
  • Startup
    • News from Startup world
    • Startup Stories
    • Trends and Opinions
    • Startup Podcasts
    • Startup Videos
  • Business
    • Feature Stories
    • News
    • Business Podcasts
    • Business Videos
  • Society
    • Inspiration
    • Destinations & Travel
    • Food & Gourmet
    • People
    • Young Voices
    • Society Videos
    • Society Podcasts
  • Press Release
  • Awards
    • MIA Impact Circle Stellar CxO 2023 Malaysia
    • MIA Impact Circle Stellar CxO 2023 India
    • MIA Impact Circle Stellar CxO 2023 Philippines
    • Australian Women in Business Excellence Awards
    • MIA Impact Circle Stellar CxO 2024 Singapore
    • Mia Impact Circle Stellar Cxo 2024 Hongkong Award 
    • Mia Impact Circle Stellar Cxo 2024 Indonesia Award 
Have an existing account? Sign In
Follow US
© 2023 Marketing In Asia Sdn Bhd. All Rights Reserved.
Marketing In Asia > Blog > Marketing > What is Network Marketing and How Does it Work?
Marketing

What is Network Marketing and How Does it Work?

profile
Last updated: 2022/10/19 at 8:03 PM
MIA Editor
Share
16 Min Read
SHARE

Network marketing is a popular business model that involves selling products directly to consumers who need them. It’s been around for decades, and its continues to grow. Distributing products has traditionally been a big hassle.

New potential customers had to be recruited, experience other salespeople, or buy from smaller websites than you could reach. Distributors have streamlined distribution of these products in a way that allows greater reach and success for companies. Network marketing is an opportunity for some people to start a business with flexible hours. They can run the company and commute the work they do in their own time.

Types of network marketing

Direct marketing, multi-level marketing, affiliate marketing, consumer-direct marketing, referral marketing and home-based business franchising are all terms used to describe networked business models. Where independent contractors sell products or services to consumers.

The Multi-Level Marketing (MLM) business model is the most common form of network marketing, with the majority of MLM participants utilizing this business model to sell products directly to consumers. The salespeople in this model, called independent “direct sellers”, they purchase inventory units that are present then sold into their own consumer markets either through retail outlets or through online sales.

Products can also be sold at company-sponsored events and conferences. These categories are similar in that people use their networks to run their businesses. By doing this, people can make sales or recruit other individuals to sell the products. they are offering.

Direct marketing

This marketing system is based on a single tier and if you sign up to sell the product and recruit other people, you will not be earning any money. The payout will be dependent on how many people you recruited. Direct marketing is often the most direct form of sales.

If you get your friends & family to buy into a product (or a network marketing program), this is fantastic and can really add up over time.

Sources: cyberclick

You’ve reduced your expenses by not recruiting distributors and only selling in direct. This gives you more resources for business, which is a very good thing! Pay-per-click and pay per lead affiliate programs allow the user to receive a certain amount of money for every click or lead that is brought in by their website.

One of the more interesting marketing strategies out there is direct email marketing. This communication method allows advertisers to make ads that are personalized, engaging and depend on the receiver’s interests.

Direct marketing can be harder to measure, but it is still possible to get an idea of how much interest there is in your campaign.

Affiliate marketing

Increasingly, companies are using affiliate marketing programs in a lot of different ways. Website owners and bloggers typically provide links to products they love through their websites and blogs.

Customers can trust the website and purchase their products immediately because the site pays referral commission. This also provides them with a safe and reliable place to shop on, where they know that they’ll be getting what they’re looking for.

It’s important that people know that bloggers may be taking advantage of them through affiliate links. An easy way to tell your audience is to put a disclaimer at the bottom of a blog post. Many affiliate programs are there in the market.

You need to conduct some research and find high-paying affiliate programs to join. Affiliate marketing is not about blogs and websites. There are also apps that can be downloaded for your phone or tablet where you can earn commission by driving traffic to specific stores, shopping websites or brands.

Source neilpatel

It’s a process that seems easy and quick, which is why it has many people believe in its competencies. However, there are some warning signs that ought to make you realize the way most people do it might not be optimal.

There are many ways of making money with affiliate marketing, but they all have one thing in common – they’re extremely time-consuming. You’ll need to put in a lot of effort and hustle, which will lead to a rewarding flow of sales for your company.

While selling products, a commission is paid for every sale. To be a ‘commission-only sales representative’, you’d need to only focus on driving sales, and not worry about collecting money from the client in return.

Multi-level marketing

In MLM, consumers and businesses can find someone who is passionate about the industry and join a Marketing Opportunity Brand with that person. By offering products at a discounted price, the company tries to create more customers who are passionate enough to talk about their product with friends & family as well as buy other products they may need while creating revenue for themselves.

Distributors get a share of the profits from the sales of products. Even though they don’t get a regular salary, they’re still earning a significant amount of money every month. That is plenty of motivation for them to keep working hard for you.

Source: foxigen.com

MLM companies provide a healthy infrastructure and great training and help to show people the benefits of the products they come with. Plus, like many other types of salespeople or distributors, MLM reps can reinvest their money to buy more products and sell them on. There are also many multilevel marketing software tools to help an MLM organization run efficiently.

They receive fixed commissions to recruit distributors, but they also earn an income from selling products. Sales representatives should focus on the recruitment aspect of their work and reach a certain level of sponsorship to reach the top tier.

 Notable features of network marketing

source: marketing91

Hierarchal Structure

Assume that a person ‘ A ‘  has a person  ‘ B ‘ behind him.

A will get a commission for his sales, but most of the money will have to go to B if they are using a salary. B gets a commission on any sales made by individual C. It is a 3-level hierarchy that can lead to excessive issues with what these executives might consider similar activities.

No advertising

MLMs are an ideal platform for businesses that need to spend less on advertisements. Network marketing allows for custom communication of the products & services to customers which means MLM can rely less on ads.

Direct sales

Network marketing companies don’t use a distribution channel and instead rely on independent participants to sell their products. All participants / associates earn the same share of revenue, so there is no incentive for them to market their products.

Profits for the participants

By joining a network marketing campaign, you’re able to make even more money, and you can use the additional benefits to your advantage. Talk to people in person about your product, share work opportunities you might find on the ground, and earn additional commission.

Selling philosophy

Network marketing is a sales-oriented approach which focuses heavily on recruiting if not selling. Selling the products to the audience, hosting seminars, or providing content to earn money from commissions.

One thing many companies like this focus on is relationships with their audience as well as other people in said industry–in order for them to really sell their products.

Independent business owners (IBO)

Participant uses IBO platform. They work to promote their business and earn income at the same time. Business owners can have unlimited customers from anywhere, allowing them flexible work hours.

Unfixed salary structures

Network marketing involves executing specific tasks for a commission. Salary models in this field involve payment-based methods that vary depending on the company’s needs.

An accountable framework

In network marketing, people are responsible for selling more products. In the commission-based model, it is based on what someone sells. It is straightforward and easy to explain to newer members or people that they are accountable to sell more products and earn more money.

 Also read: How to Get Started with Digital Marketing and Which Tools to Use

Structure of network marketing

Manufacturers need to build a network marketing structure that is robust. They’re able to do this by having distributors, sub-distributors, and dealers. All these distributors get goods and products from manufacturers at wholesale rates. They can use them personally or you can sell them to other distributors and make profit!

It forms a chain that continues until distributors reach customers. When they reach customers or become final consumers themselves, then the distribution chain ends. To create a system of network marketing, manufacturers require multiple distributors, sub-distributors, and dealers.

As a result, retailers save money by buying products at wholesale prices directly from producers. They can either use them themselves or sell them to other distributors at a profit. For retailers, the chain is moving on further and getting smaller.

This will help them drive more profits from their marketing strategy. Brokers don’t have their own companies; they work on commission with companies they refer. This makes them like when working with insurance agents and helps them save money by dealing in the goods these companies sell.

Use of network marketing

Business structures that require a multi-level form of marketing typically use network marketing. This is because manufacturers need to have an extensive network of retailers to sell their products and win new customers but also because there must be a solid structure for purchase orders, revenue, and inventory tracking. Distributor is a person who profits from generating sales.

Many businesses use this part-time distributor experience to boost their sales at home. Some of these success stories include Amway and Tupperware, which have also generated revenue from distributors all around the world.

How to start a network marketing business model

You want to start a network marketing company? If so, make sure to have a strong core team with a strong marketing team. The idea of having someone who is passionate about your company but does not follow the rules is not feasible because that can undermine your efforts and affect your marketing strategy.

Marketing is important for business’s success but the firm should maintain honesty and genuine sincerity. It is a way of self-marketing. In network marketing, you can be successful if you put your focus on the products that you are selling, rather than getting more people to sign up.

If your goal is to start a network marketing business from scratch, one of the most important steps is finding a wholesaler or manufacturer. This will help you find adequate suppliers to meet your needs and/or distribute your product.

Find a niche

You need to identify why you want to start a network marketing business and this will help you to not only be more motivated about making your business successful, but it will also allow you to understand what you are passionate about and start your business successfully.

Select a product line for your network marketing company. The most popular type of business out there right now is the MLM.

Wholesale suppliers

Search for a wholesale supplier through the Association of Wholesaler-Distributors and enrol you company. Attend meetings to become more familiar with the network. Find supplies for your business through this network.

Set price structure

Set the suggested retail price of your products according to your supplier’s recommendations. Create a commission structure for your distributors on several different levels.

Organizational and management setup

Use this program to calculate your commissions before starting a new distributor. Make copies of the form, slip it in an envelope and send it to each new distributor you recruit. Create comprehensive instruction manual to highlight ways in which distributors can advertise their network marketing businesses.

Marketing your business 

Work with a magazine that is right for your company to advertise in. You can find magazines that cater to your industry, type of business or product. Classified ads are good for unexpected opportunities and cost-effective compared to a pay-per-lead ad.

Also Read: What Is The Role Of Digital Marketing In A Business’s Success

Conclusion

Network marketing is one of the most effective business models for optimizing the reach, lead generation, and recruitment of your business. It takes a great deal of trust to enter this type of field, but it can be very rewarding for those who stick with it.

Network marketing is a great way to make extra income. It’s important to note that it’s more than just a business framework and is often the path for distributors who want to join one. Success of any network marketing company is directly related to the extent that it builds a deep organizational structure.

You Might Also Like

Marketing in Asia Presents an Exclusive Interview with Carine Chin, Head of Corporate Marketing, Etiqa Insurance Singapore

Marketing in Asia Presents an Exclusive Interview with April Tayson, Regional VP INSEAU at Adjust

How conversational commerce benefits marketers

Marketing in Asia Presents an Exclusive Interview with Andrew Monu, VP of Marketing, LinkedIn

Marketing in Asia Presents an Exclusive Interview with Ankita Thakur, Group Head of Marketing, MoneyHero Group

MIA
Get Latest Job Updates on Whatsapp and Telegram
SCIKEY Logo
Whatsapp
Telegram
TAGGED: digital marketing, marketing, network marketing

Sign Up For MIA Newsletter

Be keep up! Get the latest updates about the Marketing world delivered straight to your inbox.

    By signing up, you agree to our Terms of Use and acknowledge the data practices in our Privacy Policy. You may unsubscribe at any time.
    MIA Editor October 19, 2022 October 19, 2022
    Share This Article
    Facebook Twitter LinkedIn Email Copy Link Print
    Share
    What do you think?
    Love0
    Happy0
    Joy0
    Surprise0
    Sad0
    Angry0
    Cry0
    Previous Article How Does Digital Marketing Work in 2022
    Next Article Marketing in the Digital Age: What Role Does Marketing Play? What Role Does Marketing Play In The Digital Age?
    9.5k Followers Follow
    3.4k Followers Like
    1.1k Followers Follow
    214 Followers Follow
    208 Subscribers Subscribe

    Latest News

    Phishing concept
    Singapore, Indonesia and India among the most concerned about falling victim to financial phishing scams
    Press Release 13 hours ago
    MOU Signing Perhumas x Amec
    PERHUMAS and AMEC Sign Memorandum of Understanding to Strengthen Data-Driven Communication and Strategic Evaluation Practices
    Press Release 13 hours ago
    Carine Chin
    Marketing in Asia Presents an Exclusive Interview with Carine Chin, Head of Corporate Marketing, Etiqa Insurance Singapore
    Business Interviews Marketing 13 hours ago
    Fanly Tanto, Country Director, Indonesia, Google Cloud, unveils Google Cloud's “Indonesia BerdAIa” program with 15 industry-leading Indonesian organizations
    Google Cloud Unveils Indonesia BerdAIa, a Cross-Industry Program to Co-Create Enterprise AI Solutions for Real-World Impact
    Press Release 2 days ago

    PropertyGuru

    property guru

    You Might also Like

    Carine Chin
    BusinessInterviewsMarketing

    Marketing in Asia Presents an Exclusive Interview with Carine Chin, Head of Corporate Marketing, Etiqa Insurance Singapore

    13 hours ago
    April Tayson, Regional VP INSEAU at Adjust
    BusinessInterviewsMarketing

    Marketing in Asia Presents an Exclusive Interview with April Tayson, Regional VP INSEAU at Adjust

    7 days ago
    Sangeeta Mudnal
    BrandingMarketing

    How conversational commerce benefits marketers

    1 week ago
    Andrew Monu, VP of Marketing, LinkedIn
    BusinessInterviewsMarketing

    Marketing in Asia Presents an Exclusive Interview with Andrew Monu, VP of Marketing, LinkedIn

    1 week ago
    //

    Get Asia to Notice You

    Quick Link

    • Contact
    • RSS Terms of Service
    • Policies & Standards
    • About Us
    • FAQ
    • Disclaimer
    • Terms Of Service
    • Privacy Policy

    Top Categories

    • Marketing
    • Startup
    • Feature Stories
    • News
    • People
    • Inspiration

    Sign Up for Our Newsletter

    Subscribe to our newsletter to get our newest articles instantly!

      Marketing In AsiaMarketing In Asia
      Follow US
      © 2024 Marketing In Asia. All Rights Reserved.
      • Disclaimer
      • Terms of Service
      • Privacy Policy