I’ll go into the reasons for that in more detail on other pages at this site, and I’ll show how anyone can indeed succeed at Network Marketing — provided they do it in a different way from what many network marketing companies recommend and teach.
In this regard, you may want to download this free eBook titled The 7 Great Lies of Network Marketing, in which the author goes into some detail about why people have not succeeded in this kind of business, and how to change that. (The link opens a new window/tab.)
But first, let’s try to unravel what for many people is still not absolutely clear — just what is network marketing?
The network marketing associate’s role is to market (promote) the benefits of becoming a direct buying customer of that company’s products or services. Such benefits often include one or more of the following:
Note, a network marketing company is not the same as a multilevel marketing (MLM) company, which still sells through a multi-level system of individual customers who have such roles as master distributors, distributors, wholesalers, retailers (called by various names, according to which company it is). Some companies have only two levels of customers, like master distributors (who buy direct) and distributors (who buy from a master distributer). The names are not important right now; it’s the principles I’m trying to clarify.
With an MLM company, the multi-level marketing and distribution functions are handled by private individuals and not by large companies. Examples would be kitchenware, jewellery, cosmetics, and so on. Unlike pure network marketing companies, there is still a multi-level distribution chain, where each level pays a different price, so that each distributor can earn some profit on sales to other distributors ‘below’ them in the MLM hierarchy or ‘downline’.
In a Network Marketing company, however, the company sells and distributes directly to every one of its registered customers, many of whom want to be active marketing associates to earn some income too. The marketing associates all pay the same price, so there is not a multi-level pricing structure for the associates; and no associate has to buy from another associate. They are truly in the direct buying business model, where everyone has the same earnings potential and someone you secured as a new direct customer can end up earning much more than you do if they’ve worked more effectively at it than you have.
It seems that these differences between MLM and NWM have become a bit blurred in the last few decades, either through unclear thinking or in a deliberate attempt by MLM companies and their distributors to want people to think they work in the same way as the successful network marketing companies, which came after MLM was already going strong. NWM is, in a way, a refinement or improvement over MLM, though some dedicated MLMers would no doubt disagree with me.
So, when someone asks the question: What is network marketing?, it will help to clarify that the answer is about network marketing and not about multilevel marketing, and if necessary explain the difference.