Network marketing - A phenomenon of recent times

Network marketing, which is also known as, multi level marketing (MLM) or Referralmarketing, and it is described as forming transactional business by sponsoring international partners. It is another form of direct marketing, organizations provide a platform to individuals to start their own businesses and act as the marketing, sales and promotion means. The simplest explanation of network marketing could be that it is the method of marketing that utilizes independent representatives to reach potentialcustomers that a company otherwise would not be able to reach with traditional online or offline marketingmethods. Hence, the products of a company are promoted through the word of mouth and personal relationships of the individuals. The more people add to your network and join it to play their part the more compensation you get from the organization.

People are able to earn a lot of money through this by spending very little time. People who like to sit at home and want to be self employed find the maximum benefit in it. They just have to spread their network and earn money. However, network marketing does not take a lot of time of the individuals to earn money but the success of network marking depends on the quality of a person, kind of efforts he makes and the skills he is equipped with.

There is no defined success roadmap for the networkmarketing. Network marketing can fail due to the following reasons:

- Inexperienced management

- Insufficient capital

- Ineffective distribution team

- Ineffective compensation plan

- Unattractive products

- Lack of uniqueness

Individuals who want to enter into this business and earn profit from a small investment should undertake all the above mentioned points and then join a good network marketing company. To be a successful network marketer you need to follow certain principals of that business. Firstly, you need to be persistent. You need to keep on going and increasing your network. According to a research only 5% of the people in your network will play an active part, and the other 95% will eventually stop contributing. But these 5% can be of great advantage to you. The second most important thing is to be patient. Success never comes at once. You need to keep on making efforts and have patience. Self improvement and development is another important factor of success in the network marketing. You need to build relations with people to add them into their network and you need to act as a mentor to the people. Being a mentor is important because if the people get success, you’ll get success as well. Following these basic principles of network marketing can result in the success of people involved in thisbusiness.