What is Network Marketing?

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I would like to define Network Marketing as simple as possible, by comparing it with a Traditional Business.

This is I think the basic understanding of Network Marketing. A company distributes its products or services. What the traditional company pays for and the Network Marketing company don't, is advertising. Independent business owner market the products and services for the NM company and in return they are being compensate in a form of bonus and commission from the advertising money the company have saved.

The MLM company gets the best form of advertising, that is Word Of Mouth by a network of Independent Business Owner, or you may called is also as Independent Distributors, whom are based only on commissions.

In the distribution process, there are middlemen in the traditional business. They have their hands in the profit pie. Instead of all the pie being taken by middlemen (wholesalers, stores, retailers), the pie is being given to independent distributors in many levels in Network Marketing business.

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Authored by kevinn on 29th March 2009

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