Meaning of Network Marketing

what is the meaning of Network Marketing

 What is the meaning of  Network Marketing 

This is a meaning of network marketing that relies on individuals harnessing their personal networks to grow a business or sell a product .The distributor makes money through commission on the products they sell .

speaking Network Marketing is a business concept  that relies  on independent agents selling to other people generally from their homes. You may need to develop a network of business network salespeople to generate leads and close sales if you start a network marketing . 


its functions of different types . These make  three types of it .

  • Single -tier marketing 
  • Two-tier marketing 
  • Multi-level marketing

Single-tier  network marketing  

Single- tier network marketing is very simple .If you will be selling the product and service  of other companies without  any additional distributor .

Better ware, Avon beauty cream company follows the single tier marketing .Some online platforms are using the single tier marketing .

 Some examples of single tier marketing are PPC(pay- per- click ) and PPL(pay-per- lead) .

Two -tier – marketing 

In two- tier-network  companies recruit people However the payment of these employees is not just limited to it .

They can earn compensation through direct sales or traffic they drive to a website .Beside, they also earn commission on the sales generated by those who joined the program through their referral .

Multilevel marketing

As the name signifies , multi level marketing in two or more tiers of marketing .It is mostly based on distribution network . They recruits are the “downline” of distributors. Here people also earn money when the tier becomes five or more times deeper . 

How does network marketing work 
How does network marketing work 

Multi-Level marketing, cellular marketing, affiliate marketing , consumer direct marketing and referral marketing are all terms use to describe network marketing.

Network marketing companies frequently construct layers of salespeople , in which salespeople recruit their own network of salespeople .

  • The person who starts a new rank (or “upline”) gets paid commission on their own sales as well as the sales of the individuals in the tier they started (the “downline”).
  • With time, a new tier was upgraded ,providing an additional commission to the top tier as well as their medium tier .
  • The earning of a member of network marketing was depending on the sale of the products .

Any new person joining a network marketing team goes through two processes : firstly is training and secondly is sales.


The first step after joining  the company is to become the distributor .Now you will be selling the product .

Because business entails selling and recruiting distributors. The firm you join will offer  you product and sales training .

To assist you in getting started with the company ,the company supplies you product information as well as promotional items such as advertising materials and marcom tools . 

Most of the companies provide sales training to recruit new people ,generally organise a short workshop for that. 


Now you are ready to begin working for them. The company has instructed you on selling product knowledge with the necessary tools and supplies as well as a startup package .

you sponsor will be ready to getting start a new business 

Prospecting, making a list of prospects, qualifying the prospects, making an appointment with the prospectus ,meeting them and making a presentation  of a business proposal are now a part of your sales process. 

The process continues with them signing up with the distributors ,receiving product training ,selling and supplying them with tools as well as inspiring and working with them to help  them grow their network .

You will strive to increase retail sales in addition to hiring and developing your additional network .

making a list of prospectus for retail sales including your known contacts .