Who hasn’t heard about network marketing? This industry has been the center of quite a number of controversies both online and offline. Here are a couple companies that you probably have heard of: Avon, Amway, Monavie, Acn, 5Linx, and Ardyss.

A Definition: What is Network Marketing?

Without batting an eyelash, you’ll most likely say it is the selling of products and services to your network. Network marketing is definitely more than that. This marketing strategy allows a person to earn through the sales they make and they will also receive commission every time a sale is made by someone they have recruited. This creates a downline of resellers and generates a residual form of income for those commit to building their team.

Network marketing is also known as multi-level marketing (MLM) and referral selling. There are other less technical terms used to describe this type of marketing strategy such as interactive distribution, relationship marketing, and word-of-mouth marketing. Network marketing and direct selling are named so because of the distribution channel or the way sales are made, while multi-level marketing refers to the payment plan.

Benefits of Network Marketing

Why are so many people attracted to this type of marketing strategy? Although it’s not for everyone, there are several advantages that fit perfectly into their lifestyle. Networkers choose this type of business plan because:

• You can call in your own hours. You are basically your own boss, and you only report to the company’s office or website when it’s time to report your sales.

• Earn extra income while working. Once you’ve created a loyal customer base, even if its a small one, you will be able to make money every month.

• Personal and professional development. You develop excellent interpersonal skills and boost your level of self-confidence. Career-wise, you get to meet people from all walks of life, as well as the chance to work with like-minded individuals.

• Early retirement. The average person in america will start working full time around the age of 25 and retire at 75. That’s 50 years of working until you retire! Most people who participate in network marketing, regardless of how bad they are at it, will eventually be able to retire at least 40 years ahead of the average american and with no decrease in income.

A Marketing Strategy Controversy

There has been a lot of talk about network marketing and MLM. The Network marketing industry has received some bad press. There are some bad companies out their that will take money from those who dream of “getting rich quick.” These are the same people who believe the prince of Nigeria needs their bank account number to wire his funds in preparation for his visit to America.

The Truth: Network marketing IS NOT FOR EVERYONE! So many people come into this industry and ASSUME its easy and that in 3 months they’ll be making $3,000 a month … wrong. That can happen, but only if YOU HAVE DONE IT BEFORE AND KNOW HOW TO DO IT AGAIN. Just like any business venture, if its your first time then you will have to learn what to do and how to do it. Most people forget that and attempt to building their business like it was a job. Then when they fail, they claim network marketing is a scam because they wasted their time and money. There are several legit companies out there that can become highly profitable if you learn how to build your business correctly.

Food For Thought: The Federal Trade Commission of the United States acknowledges network marketing as a business model just like any other. They even provide guidelines for those who are interested in joining the industry.