Network marketing: what it is and how this business model works

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Nowadays, there are many ways to start a business with hardly any investment . And today we are going to explain what network marketing is, techniques and examples of a model of this business that is on the rise.

Learn how network marketing works and why this system has become so popular in recent years: a way to start a business without investment and that can give you great results.

What is network marketing
We are talking about a business model, also known as multi-level marketing or MLM , which depends directly on the sale of products or services through a network of independent distributors .

What is network marketing?
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Keep in mind that these distributors not only sell the product, but they also jamaica phone number lead have the opportunity to build their own business by recruiting other distributors . A structure known as the leverage effect, whereby a person benefits from their own sales and those generated by their network of associates.

Although it works in a similar way, network marketing has nothing to do with pyramid schemes , since what is sought is that on the one hand you create your own network of clients and on the other, through contacts that you add to your network marketing model, you can collect a commission for each of their sales.

Multi-level marketing or network marketing has a structure of levels or steps , hence its name. And the advantage is that, as we have said, the benefits come not only from personal sales, but also from sales made by the distributors that have been recruited.

In short, this business model offers a lot of freedom for distributors to set their schedules based on their needs and goals. Also, compared to other business models, network marketing usually requires no investment , or a very low one.

How network marketing works
The operation of network marketing is divided into several stages . On the one hand, you have to recruit distributors , since the basis of this business model is that you not only earn money from your sales but also from the network of associates you have created.

Distributors must sell products or services directly to consumers . One of the most common techniques is cold calling , although in some cases you already have a customer base to get started. We recommend reading this compilation of the best sales skills courses to improve your network marketing techniques.

As you can see, it is a business model focused on sales , so you have to know the best techniques to get the largest number of customers. But, if you get a wide network of distributors, and your own customers trust what you sell, you can make great profits.