What is Network Marketing?

What is Network Marketing? #1 Personal Freedom Creator

What is Network Marketing? A question that is asked thousands of times a day, but one that isn’t always properly answered. It is asked so frequently because while many people have heard of network marketing, those that are not in the industry are not 100% sure what network marketing really is.

What is Network Marketing or MLM?

Network Marketing, also known as Multi-Level Marketing (MLM), is a business model that has been around now for just over 70 years. What makes the network marketing business model different from a traditional business model is that a network marketing business uses direct sales and relationship referrals as the method of selling its products and/or services. This is accomplished through the network of independent distributors/associates working with the parent network marketing company.

These independent distributors/associates are paid commissions for their sales based on the network marketing company’s compensation plan. As a distributor/associate’s organization sells the products/services the volume that is generated by these sales determines the distributor/associate’s income – the more volume the more money that is earned. One of the greatest benefits of a network marketing business is that the distributor/associate is able to leverage the efforts of other people to increase their income. See the bottom of this page for more benefits.

Why Companies Choose Network Marketing

We cannot explain what is network marketing without the monetary advantages it provides companies. Regardless of industry or products, a company’s goal is to increase sales and customer base year over year, and from those sales turn a profit. For a traditional style of business, the products and/or services that are being sold are marketed and sold through traditional means.

For marketing, the traditional company will have an advertising budget. This is used to get the product and/or service in front of the public so that they are aware that it exists and the benefits of using this product and/or service. The company then has to have the proper channels for their products and/or services to be sold, and for this, they turn to retail outlets. The retail outlets are what a customer goes to, whether in person or online, and purchases the products and/or services that they saw advertised.

In following this traditional business model, money is spent on manufacturing the product, advertising, distribution to the retail outlets and the retail outlet’s mark-up. In a network marketing business model, the money that would have been spent on advertising, shipping and retail outlet mark-up is saved. Instead, it is paid out in commissions to the independent distributor/associate.

In today’s environment with multiple sources of media everywhere we look, it is becoming more and more difficult to engage people and share a new product and/or service. Network marketing allows companies to get through multiple levels of distractions and work with an individual’s referrals to sell their product. No longer does the biggest advertising budget win, as it can be very difficult, if not impossible for new start-ups to compete with their larger, corporate competition.

Network marketing levels the playing field and allows start-ups the chance to build their customer base. Also as the network marketing model is more directly in contact with its customers, better customer service can be achieved and thus increased customer loyalties also. Everything from developing new products/services as requested by the customers, to saving the customers money as the “middle man” is no longer present in the business model. It is a win-win situation for the company and its customers!

Why Network Marketing is Attractive for Home Business

Lastly, when looking into what is network marketing, you must look at how this can benefit you. Why would you want to get involved in a network marketing opportunity?

People are starting their own Network Marketing home-based business every single day. There are many benefits to having your own network marketing business. While the list is extensive, here are some of the major reasons:

  • A low investment that can yield a high income with extremely low risk.
  • A part-time income can be generated without leaving the current job.
  • Major tax advantages to save money on current household bills.
  • Residual income can be created to improve lifestyle.
  • Leveraging your efforts and those of others to increase your income.
  • Personal development enhances all aspects of your life.
  • Cooperation and friendship bonds cannot be achieved in other styles of business.
  • and many more . . .

If you are just starting your investigation into a home-based business that involves Network Marketing, or you are new to the Network Marketing industry, congratulations! You are taking the first steps to create a life that you create based on your rules.

If you require further assistance or explanations of terms that you see on this site, please do not hesitate to contact Engineered Lifestyles today.

Inspiration 

"Real integrity is doing the right thing, knowing that nobody's going to know whether you did it or not." - Oprah Winfrey 🌟

Integrity is all about what you do when no one’s watching. 💯 It’s those little moments when you choose what’s right, not for applause, but because it’s who you are. 💪✨ True character shows up in the choices we make in silence.

What’s one way you’re practicing integrity today? Let’s share the good vibes in the comments and inspire each other to keep doing what’s right! 🙌💬

#IntegrityMatters #LeadByExample #DoWhatsRight #CharacterCounts #StayTrueToYou
"If you are going to achieve excellence in big things, you develop the habit in little matters. Excellence is not an exception – it is a prevailing attitude." - Colin Powell 💡🌟

Here’s the secret: Excellence isn’t about one big win. 🏆 It’s about how you handle every little detail. ✨ Whether it’s making your bed or crushing a big project, success starts with the small stuff. 🔍 Excellence isn’t a one-time thing—it’s a mindset you bring every single day. 💪

What’s one small habit you’re building today to get closer to your goals? Let us know in the comments and let’s aim for excellence together! 🚀

#ExcellenceEveryDay #GrowthHabits #MindsetMatters #LevelUpYourLife #SuccessStartsSmall
"If you don't risk anything, you risk even more." - Erica Jong 💥✨

�Let’s get real: playing it safe might feel comfortable, but it comes with a bigger risk! 😬 Staying in your comfort zone means you miss out on all the opportunities, growth, and excitement waiting just beyond the edge. 🚀

So, take that leap and go for it! What’s one risk you’re ready to take today? Drop it in the comments and let’s support each other’s bold moves! 🙌🔥

#TakeTheLeap #RiskAndReward #GrowthMindset #LiveBoldly #StepOutOfYourComfortZone
"Don't be pushed around by fears in your mind. Be led by the dreams in your heart." - Roy Bennett 💫💖

Ever feel like your fears are calling the shots? 🧠💭 It’s time to flip the script! Instead of letting fear control you, follow the dreams that light you up inside. 🌟✨ When you lead with your heart, amazing things happen! 💪

What’s one dream you’re chasing today? Drop it in the comments and let’s inspire each other to stay fearless and dream big! 💬🔥

#ChaseYourDreams #FearlessLiving #HeartOverMind #DreamBigWorkHard #StayInspired
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