Network marketing is also known as MLM (multi-level marketing). So, is network marketing good career option? It is said that network marketing is a good career option if you don’t want to go out. It is also available as work from home. It is a process of connecting people to salespeople or business partners. Network marketing is a kind of business in which it depends on person-to-person sales by independent representatives. MLM requires you to build a network of business partners or salespeople. MLM has so many different types of companies who are the providers of network marketing aka MLM. It is also said by some reviews that many companies are scammed by people in the name of network marketing.
Network marketing is a good career option because it requires work from home too. Housewives and people who can’t go out for work can also work in it. In the present world, there are so many companies which are the example of network marketing. Their business model is based on network marketing. If we can see some examples of them then we can go with Avon, Amway, Herbalife, and 4life. These companies have different types of tires or we can say levels on every person they add to the network. The word network marketing has come to the knowledge as of now but the word multi-level marketing styled business existed in the early 90s. In 1930 there was a company that was based on multi-level marketing. Its name is California Vitamin Company but later that company changed its name to Nutrilite. There was one more ranch of them which was California perfumes and they changed their name to Avon products.
Before concluding, network marketing is good or not. Let’s find out some important topics related to network marketing or multi-level marketing.
- Business model:
In the annual revenue, many companies generate billions of dollars and hundreds of millions in annual profit. Did anyone know how they earn that much profit? It is earned by the MLM participants. Only some of the profit is shared with the individual participants on top of the MLM distributorship pyramid. The earnings of these types of candidates are shown as a milestone in companies’ seminars which is a kind of illusion for the people who are watching them. They try to show that if one can become financially good by the MLM then anyone can earn big by working with the MLM. Although the MLM companies have this kind of individuals as evidence that MLM could lead to success. There is a lot to say in their business model but it is kind of a manipulating trick to have you in MLM by the big companies.
If we talk about the setup of network marketing or multi-level marketing, it is defined by the chain technique. The companies appointed some people as independent non-salaried participants, which are also called distributors as well. They are appointed to distribute the product of the company. The stipend of these types of participants depends on the sale they made through their chain and some commission from the company as well. These types of participants are the ones who made the chain to sell products of the company and will earn profit from them. This is the finest trick of multi-level marketing or network marketing.
- Income levels:
There are so many comments on the income level of different specific MLM companies. Some of the main headings I will show next:
- By the publishers of “, “The times” the investigations of the government have revealed that only 10% of employees of Amway have profit. It is also in Britain. If they sell a single item each they then earn the profit.
- By the publishers of Newsweek,” A lady named Mona Vie revealed the statement of her income in the year 2007 which tells that only 1 percent qualified for the commissions and of those only 10 percent earned $100 a week.
- In 2018 a poll will be conducted to see the level of income of various peoples. There are a total of 1049 MLM sellers including their votes in it. The majority of 60% revealed that they earned an average of less than $100 in sales over five years and 20% ever made a single sale.
In some countries network marketing or multi-level marketing is illegal and in some countries this is legal so at this point, I will tell you some countries where it is legal or where it is illegal.
- Bangladesh: In the year 2015 the government of Bangladesh banned all types of domestic as well as foreign MLM trades.
- Saudi Arabia: MLM marketing is banned in Saudi Arabia due to some religious imposing which is called a fatwa. Due to this reason companies like Amway, Mary Kay, and Herbalife sell their products online.
- India: In India the MLM is legal and many companies are working freely here. One of the topmost earning profit companies is prestige. In India, any kind of network marketing is not illegal and people say it is safe.
If we go through all the details we have in the above details. We can say that network marketing is neither good nor bad, due to its transparency in work we can say it is good but when we go through their setup and revenue distribution we can say it is risky. Risky because we are giving our precious time in it and if we can’t get enough revenue what’s the profit then. Yes, it is good also due to its work from features and more benefits while working for it. If we talk about respect in the network marketing field then we must say that when building a career in the network marketing business you don’t earn that much respect. You get more respect while working as a full-time job. Overall the business of network marketing in India is pretty good because most of the companies work on customer satisfaction which is a good thing, because of that network marketing has a good career and future in India.
Frequently asked questions:
- Question: what is a good thing about MLM or network marketing?
Answer: If we talk about good things about MLM or network marketing, we can say that in it you can work according to your comfort and also it has no required work hours. It is beneficial for those who can’t go out and work. The MLM depends on how many people you can add to your group.
- Question: What is the fixed stipend in network marketing?
Answer: If we talk about the fixed stipend in network marketing then there is nil because the stipends in network marketing depend on the sale you made of products of the company. You will also get some commission on the sale by the company.
- Question: Network marketing legal or illegal?
Answer: Network marketing is a business that is legal in some countries and it is also illegal in some countries too. In Saudi Arabia, it is illegal because it hurts the religious things of that country. The fatwa has been issued in the name of all the MLM businesses of Saudi Arabia.