What is Network Marketing? . . . 
The Meaning Broken Down


When you ask that question, ". . . What is Network Marketing?"  You need to realize it is something we do everyday.  When we do it, we fatten other people's pockets without realizing it.

Let's break it down:

according to Oxford Dictionary

Network = “ . . . A group of people who exchange information and contacts for professional or social purposes”

Marketing = “ . . . The action or business of promoting or selling products or services”


Our network could be our friends, Family, coworkers, club members, etc.  We market to our network.  Network Marketing is very powerful to those who are knowledgeble about building a quality network

Before you get confused between multilevel marketing and network marketing, know that  . . . 

Network Marketing is what we do.

Multilevel marketing is how we're paid from what we do.


If you don't think you do network marketing every day, when was the last time a friend recommended a:

  1. Hotel
  2. Restaurant
  3. Day care
  4. or Movie

. . . and you actually took them up on their recommendation.

When Was the last time you were excited about a:

  1. Destination
  2. Food
  3. Store
  4. Music

Furthermore, whenever those subjects came up, you may sure you remembered to tell them about it.


We buy socially.

What that means is we are more likely to buy or take advantage of a product or service because of opinions from friends.

Mainly, from friends who've tried those products or services, versus seeing it on commercials, billboards, or magazines.



To break it down further, typical businesses have products or services that they sell. In addition, they have sales and marketing tips to grow their business. 

In order to make the general public (you, me, and our friends) aware that this product exists, they have to advertise. Businesses use traditional advertising methods such as TV commercials, billboards, magazine and newspaper ads, etc.

To advertise this way can cost up to $30,000 or more depending on which advertising methods they choose and how often they choose to use it.  Advertising can become costly for many businesses.



What is Network Marketing

How Network Marketing works is those companies decide to use non-traditional advertising methods.

The company would have a product and instead of paying thousands of dollars to advertise their products, they pay us (as representatives) to advertise the product for them.

So in a nutshell a:

Traditional business - pays money to advertising companies (TV, billboards, and magazines) to market their products.

A Network Marketing company - pays YOU to market and sell their products 



The Power of Network Marketing

Where the power of network marketing comes in is leveraging.

When the independent representative of the mlm company introduces the products (or the company) to another individual, that individual has the opportunity to be a representative of that same company.

So for example, if YOU sponsor a person and they become a representative, not only does the company pay the person that you sponsored for every product that they introduced to others, but the company also pays you a portion of what your sponsor gets ON TOP of what you are getting from your personal efforts.


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