A Close Look at Network Marketing

| Posted: 10-05-2008 | Comments: 0 | Views: 3 | Rating: (51)

(?)

Network marketing or direct selling companies are part of a global, thriving industry employing more than 43 million people and generating sales of over $ 75 billion. Network marketing owes its success to the following:
• Promoters of a product are necessarily users. Therefore, their word carries a higher degree of credibility, than in the case of conventional marketers, who might lack the conviction that comes only from personal experience.
• The concept of direct selling eliminates the need for a multi-layered distribution network and costly advertising. This is turn, lowers the price of the product to end users.
• Consumers benefit from the ease of access. They no longer have to spend time and energy driving to crowded shopping areas.
Paul Zane Pilsner a renowned economist and author of New York Times Best sellers such as 'Unlimited Wealth' and 'The Next Trillion Dollar', goes a step further. He describes network marketing as a sort of “intellectual distribution” which helps educate consumers about products and services they didn't know existed!
Besides offering value to the consumer, direct selling provides an opportunity to individuals with a need for additional income, or the desire to build a business of their own. In times of high unemployment, a career in direct selling might actually offer some security.
While direct selling is most often pursued as a part time job, it has blossomed into a fulfilling career for those who achieve success.
Buyer beware!
However, network marketing has been the subject of much heated debate in recent years, owing to the actions of certain unscrupulous companies. There have been instances of scams in which companies form pyramid schemes that lure unwary people into their distribution network. Such schemes ride on the number of people that get recruited as distributors by existing selling agents. Quite often, the products are sub-standard, the support from the company is minimal and there is no money to be made.
The World Federation of Direct Sales Associations (WFDSA), which is the regulatory body for network marketing companies, specifies a code of ethical conduct for all its members.
The WFDSA also has very detailed guidelines for people who wish to join a direct selling company, issued with the aim of protecting their interests. They recommend that the due diligence process must cover the following:
• Verification of company antecedents
• Asking how long the company has been in business
• Understanding how much investment is required, and what stock levels are to be maintained
• Getting a clear perspective on income generation prospects
• Ensuring that the products comply with local regulations, and asking to see some testimonials of other actual users
For those who’ve learned by bitter experience, legal redress is available, provided the company in question is a WFDSA member. That being said, it is much better to take adequate precaution as outlined above before signing up any opportunity. Primarily, it is very important not to be swayed by huge income claims.
Remember, any business can survive in the long term only on the basis of hard work, ethical practices, and by bringing value to its customers. Network marketing is no different

Rate this Article:

Current: 0 / 5 stars - 0 vote(s).

Article Tags: Marketing

Article Source: http://www.articlesbase.com/marketing-articles/a-close-look-at-network-marketing-409732.html

Print article

Send to friend

Publish this Article

Author feedback

About the Author:

Hi, I'm Akhil Shahani, a serial entrepreneur who wants to help you succeed. If you like to work smart, check out http://www.SmartEntrepreneur.net . It's full of articles and resources to help you start and grow your business successfully. Please visit us & download our special "Freebie of The Month" at
http://www.smartentrepreneur.net/freebie-of-the-month.html

Submitting articles has become one of the most popular means of generating quality backlinks and targeted traffic to your website. Join us today - It's Free!

Article Comments

Add new Comment

How to Enrich your Advertisement Copy
By: Stephen Thomson | 10/03/2007 | Advertising
Advertising is the most exciting, colorful and resourceful method of communication for promotion of products. The main purpose of the advertisement is to catch the attention of the customer. Text enrichment softwares can make your advertisement copy more interesting and appealing.

Viral Lists Builders Didn't Work, Until Now
By: Patrick J Gunning | 06/05/2008 | Viral Marketing
Most Viral List Building programs do not serve the new marketer. These programs are are largely based on the premise that you need a list to build a list. What about the person just getting started in their online business? There is another idea that solves all of the many flaws of the Viral List Building concept.

How To Build A List With Ebay
By: Gray Rollins | 16/03/2007 | Business
Ebooks are not the way to make money on eBay, as glutted as the eBay market is with them. But, there is still money to be made with them if you know how to work the system. Selling an ebook on the site subjects you to intense competition, many times...

Ecommerce & SEO
By: Moe Tamani | 07/05/2008 | SEO
Any business which hosts a website online does so with the purpose of promoting a particular product or a service to mass target audience. Business websites with an ecommerce facility give their customers an opportunity to order or purchase products or services from the comforts of their home or office without having to visit the brick-and-mortar-site.

Guides On Free Affiliate Programs
By: Obinna Heche | 20/03/2007 | Affiliate Programs
Be wary of the online ads that offer to give you program details free or with no risk obligations as some of them can be expensive.

New Millennium Marketing
By: Tamara Dorris | 07/05/2008 | Sales
Anyone in sales knows the old school style of pushy doesn't work anymore. Here, trainer and coach, T.Dorris, explains the new selling philosophy in a way all salespeople can relate to.

Take Back Control With the Newsletter Reader
By: Marige Obrien | 21/03/2007 | Newsletters
With the explosion of newsletters, the release of a specialized newsletter reader is over-due.

Steps to Starting a Small Business
By: D Sterlin | 08/05/2008 | Small Business
For those of you that are thinking about starting a business or a new one read this article first. It includes the preliminary action steps needed to start a small business successfully.

Got a Question? Ask.

Ask the community a question about this article:

Frequently Asked Questions

Are the Agel products as good as they say? was ...
By: tiginat | 24-11-2007
Are the Agel products as good as they say?was there any research on how they effect our health and body?

Black Friday
By: bisthedog | 23-11-2007
What is black Friday and why is it called like this?

Automated customer service
By: ManuelGarcia | 17-11-2007
Hi, I am looking for reliable articles that will give me some information about automated customer service. Can someone pls provide me with a website? Thanks Manuel

Is an iPod Shuffle - 1 GB a good prize for an ...
By: wickedtruth | 17-11-2007
Is an iPod Shuffle - 1 GB a good prize for an online contest/drawing? If not, do you have any other suggestions?

What is seo?
By: freepass99 | 12-11-2007
what is seo?

How to run a web 2.0 site?
By: xiaonanhuang | 12-11-2007
how to run a web 2.0 site?

Q&A Powered by:

Latest Marketing Articles

Tell Them Why They Should Buy
By: Karen Scharf | 21/08/2008
Our customers don't know our products inside and out. They do not make the mental leap from features to benefits. We need to show them, to spell out exactly what our product or service will do for them.

The Number One Killer of Information Marketing Success and How to Avoid It
By: Caleb Scoville | 20/08/2008
The longer you hang onto an idea without implementing it, the less viable it becomes. It's better to implement and learn from your mistakes than to obsess over it for weeks or months that you could be focused on more important things.

Want to Attract New Dental Patients? Think About a Referral Contest
By: James Erickson | 20/08/2008
A referral contest is a great way to get your current patients bombarding you with new, quality patients. Referrals are always the best new patients, because they generally come in already liking you. So, why not do something to double, or even triple the number of referral you receive?

Relationship Marketing: Lead Scoring for Success
By: Christian Fea | 20/08/2008
Developing a relationship marketing platform for your business is an important step in every marketing campaign. Having a relationship marketing plan for your business puts the focus of your business on customer fulfillment and strong customer relationships.

5 Powerfull Tips For Optimizing Your Viral Marketing Campaigns
By: Paul Baican-Vist | 20/08/2008
The media has focused recently more on Viral marketing, or "refer-a-friend" email campaigns. These campaigns are making more active the recipients of promotional emails to forward the messages to their companions. They were garnering both positive and negative comments from customers, privacy advocates, and industry pundits. The main issue are the...

The "Secret" of Voice Broadcasting Exposed
By: David Seldon | 20/08/2008
Voice broadcaster exposes a little-discussed yet obvious "secret" that has major implications for those considering using voice broadcasting. Those considering utilizing voice broadcasting in their business should consider this before spending any money for voice broadcasting.

Article Submission Services: How To Choose The Right Company
By: Deep Arora | 20/08/2008
These days the mantra for modern business is marketing. Marketing plays an integral role in your end results of sales for your organiation. While you may understand the benefits, for many the process of article submission may be better left to experts.

How to Design a Slick and Professional Website
By: Chris Coleman | 20/08/2008
It's amazing how quickly business changes. Before the internet, the only contact you had with customers was using the phone and face to face. Now, due to the advent of e-commerce via the internet, customers can discern much about your company without leaving their office or home.

More from Akhil Shahani

What to Do When Writing an E-book
By: Akhil Shahani | 16/05/2008 | EBooks
writing an e-book

Understanding Private Equity Funds
By: Akhil Shahani | 12/05/2008 | Business
Private Equity Funds

Underperformers: Finding the Root Cause
By: Akhil Shahani | 12/05/2008 | Business
Underperformers

Types of Business Licenses and Permits
By: Akhil Shahani | 12/05/2008 | Business
Business Licenses and Permits

Turning Your Hobby Into a Business
By: Akhil Shahani | 12/05/2008 | Business
hobby into a business

Transformational Leadership: Inspiring to Change
By: Akhil Shahani | 12/05/2008 | Business
Transformational Leadership

Are Companies Training Their Employees Right
By: Akhil Shahani | 12/05/2008 | Business
companies training their employees right

Tips for Problem Solving
By: Akhil Shahani | 12/05/2008 | Business
Problem Solving

Article Categories

Article Marketing

Article Notepad

Stop Duplicate Content

Term Papers

Follow ArticlesBase at http://twitter.com

Need Help?

Sign up for our email newsletter

Receive updates, enter your email below

Use of this web site constitutes acceptance of the Terms Of Use and Privacy Policy | User published content is licensed under a Creative Commons License.
Copyright © 2005-2008 Free Articles by ArticlesBase.com, All rights reserved. (0.26, 16)

A Close Look at Network Marketing

Article Comments

Related Articles

Got a Question? Ask.

Latest Marketing Articles

More from Akhil Shahani

Need Help?

Site Links

Webmasters

Business Info

Sign up for our email newsletter