What Is Network Marketing How it Works

First of all i would like to tell this is not an promotional article this is for awareness to let peoples know What Is Network Marketing How it Works. There are many positive and negative faces of this business but will discuss that how it works.

Generally two kinds of businesses are being operated in today’s world. One is the Traditional Business and the other is Network Marketing. The first type starts by a Capital Investment whereas the other type can be initiated by purchasing just a small product. In traditional business, when your business enlarges your responsibilities grow, contrary, in Network Marketing when your business develops and expands your responsibilities become fewer and with the passage of time your business obligations eventually come down to almost nothing. And you have got a plenty of leisure time for yourself and family. That’s why someone so successful like Bill Gates wants to adapt this business. He says: “If I decide to produce all my wealth again I will choose Network Marketing”.

In Network Marketing Business individuals’ personal credibility is used within their social circle in a very effective way. In fact the Company introduces or markets its products among the people through people. And get new customers, (that is quite a task for any company) through individuals against giving them good profits. In this way people provide new customers and in return the Company compensates them in form of commissions.


Suppose I need a cell phone and I buy a Nokia Android Phone on a friends’ recommendation. And in fact I have not even seen any advertisement or TV commercial about this Phone earlier. But just on the recommendation of a close friend I bought the Phone confidently.

So naively my friend publicized the Nokia Company and one of their Phones is sold. Likewise after using this Phone I recommend and influence many of my friends to buy this Nokia Phone and as a result a large chain grows. Subsequently the Phone becomes popular and the sales increases by leaps and bounds. But in the entire scenario my friend (the one who recommended the phone to me) gets nothing more than a word of thanks.

Network Marketing works on the same principle and does Network Marketing through us. The products are introduced within our social circle via us but the company does not send us home empty handed like others do, but pays us good commissions in form of dollars.