A Beginners Guide To Network Marketing

network marketing

In this piece, I am going to guide you through everything you should know about network marketing.

I will give you an existing framework for growing your company as you develop relationships with your prospects, customers, and team.

The concept of relationships is the same; it doesn’t matter which network you are with.

In short: if you want more marketing tactics and creating a company that you feel good about, you’ll love this guide.

You have chosen this business more than likely because you believe in it; you have had amazing results, and you are excited to share it with others to help them improve their lives as well.

If it’s your side project to raise extra money, you ‘re a stay-at-home mom who wants to boost family income, or you’re a young entrepreneur who wants to create a profitable network marketing company and avoid the traditional nine-to-five employment.

Whatever your excuse, your enthusiasm is likely to be dampened when you have to participate in methods of traditional sales that leave you feeling dirty and irritated.

Although though you may love sales, you probably hate sounding ‘salesy.’ You may have been advised to rely on icy conventional sales strategies such as cold texting and calling friends and family or purchasing leads online to achieve your sales goals.

The problem with that is through a few calls in; you start feeling rejected as you hear ‘no’ after ‘no.’

You’ve always been told, though, that ‘no’ is an honor badge, and the closer you hear it, the closer you’ll be to making a deal. That’s not the reason you got into this market, is it? The traditional sales and marketing strategies can leave you frustrated if you have the heart to serve others.

It is more than a guide to achieving success in network marketing or MLM; it will help you leverage your heart to help your family, friends, and other social networks attaining their needs and aspirations while still fulfilling your sales and business aspirations.

I’ll introduce you to Network Marketing in these pages which will benefit you:

  • Give new clients and hires
  • Establish relationships and move on to a sale
  • Follow-up and more sales close
  • Most significantly, you will discover that it will help you generate more business by getting the heart to help others!

What Is Network Marketing And How Does It Work?

Network marketing is a business model that relies on the selling of individual representatives from person to person, often operating from home. A network marketing company may require that you create a network of business partners or salespeople to help generate lead and close sales.

There are several legitimate marketing operations for the network, but some were dismissed as pyramid schemes. The latter may focus less on selling to customers than on hiring salespeople who will need to pay for costly starter kits upfront.

  • Network marketing appeals to people with high energy and excellent selling skills, who, with a small investment, can create a profitable company.
  • A marketing network company can be a one-tiered platform in which you sell the goods or multi-tier where you hire salespeople.
  • Beware of network marketing firms that build several layers of salespeople and study the company extensively before you enter.

How Network Marketing Works?

Network marketing is known by a variety of names like multi level marketing, affiliate marketing,  cellular marketing, consumer-direct marketing, referral marketing, or domestic business franchising.

Companies who follow the concept of network marketing also build third parties of salespeople — that is, salespeople are expected to hire their own salespeople networks. A new tier (or “upline”) developers receive profits for their private sales and sales made by the people in the tier they created (the “downline”). A new tier will sprout another tier in time, adding to the individual in the top tier as well as the middle tier more compensation.

Also check out – B2B And B2C Marketing Strategies: Differences And Similarities

Advantages And Disadvantages Of Network Marketing

There’s some stigma attached to the networking marketing business, particularly those with multiple levels that can be characterized as pyramid schemes — that is, top-tier salespeople can make impressive amounts of money on commissions from the levels below them. The people on the lower echelons earn even less. The organization is making money by providing expensive starter kits to new hires.

The appeal of network marketing is that with a small investment, a person with a lot of energy and persuasive selling skills can build a lucrative offer.

According to the Federal Trade Commission (FCC), a common rule of thumb is that single-tier marketing network operations appear to be more reliable than multi-tiered networks, in which individuals make money depending on the number of distributors they hire.

Examples of reputable single-tier marketing operations include Avon Products, Mary Kay, and Excel Communications.

Anyone looking to enter a marketing network project will do their homework before making a decision. Consider the following questions:

•    Was it presented as an opportunity to make money selling goods or hiring others?

•    What is the firm’s founders’ track record?

•    Do you have a particular passion for the products?

•    Are you excited about the products?

•    Is that product being effectively promoted?

•    Are you expecting a reasonably quick road to income or a long treading of water?

Tips For Network Marketing Success

You’ve probably got a reliable picture of what network marketing success (also known as direct sales or multi-level marketing) is all about — homemakers buying and selling Tupperware while chattering and eating finger sandwiches, or a high-pressure salesperson trying to persuade you how quickly you can become a millionaire if you and your friends and so on buying a millionaire

These two images couldn’t be any further from the network marketing success reality. It is not a hobby or a get-rich-scheme but an opportunity for you to earn money running your own part-time or full-time business.

How To Start Network Marketing?

But what does it take to make this industry succeed? Vincent J. Kellsey, director of member services for the Direct Selling Women’s Alliance, an association that provides women and men with a range of opportunities in the direct selling market, offers these tips for making it. 

Direct Sales

Network marketing organizations market and directly sell their product, and make no use of any well-defined distribution channel. The responsibility for selling the products is transferred to the non-employed (participants) who receive the commission each time they make a sale.

This model involves participants applying the marketing philosophy of selling. The main emphasis is to hire and sell as much as possible to gain further commissions. There are no established relationships. People can also get you fooled into buying or entering the goods.

System Of Hierarchy

Suppose  ‘A’ person has a ‘B’ person under it. Now when B makes a sale, A will get the fee if he makes a sale, and also a portion of B’s commission. Now, B will also seek to hire an individual C under him and so on, to earn more money. That makes a massive hierarchy for the program.

This might also interest you – Why Events are still one of the most Powerful Marketing Methods out there

Types Of Network marketing

Let us discuss the types of network marketing before getting started with the same

Pyramid Structure Vs. Network Marketing

It’s said that the pyramid system happens when you get paid to get a new employee, and no product is involved. It’s an ill-practice that lets a person earn money by taking advantage of his family and friends. Industries with a concept of the pyramid system continue to mislead people by making them think they can gain in the future (which they do by deceiving more individuals). For example, a person will be asked to pay $100 to be a part of the company with a promise to get 25 percent of the admission fees for each recruit that he refers to. It is an organizational money-making technique where the participants are at a disadvantage.

Binary Level Marketing

A Binary Plan employs a Two-Legged structure in multi-level marketing, where each new distributor or member is placed in either the left or right subtree. One subtree is known as a Power Leg or Profit Leg, while the other subtree is either a Profit Leg or a weak leg.

The binary compensation program requires that each member hire and support two other members to join the scheme, which can theoretically lead to rapid network growth in relatively less time.

Direct Marketing

This single-tier marketing structure requires that a person sign up to sell a product or service to a company. Individuals who sign up for these programs do not need to recruit other distributors and will only be paid on the direct sales they make.

Direct marketing is the most immediate form of commercialization. Find a company you like, and get your family and friends to buy-in. Mary Kay cosmetics, Avon cosmetics, and Pampered Chef kitchen supplies are only a few top companies involved in this form of network marketing.

Affiliate Marketing

Online affiliate marketing services are using a newer aspect of network marketing. Website owners and bloggers use their websites to add ties to different goods. The website owner is rewarded a referral fee when people click on those links and buy products. It gives consumers access to a trustworthy site where the items being marketed can be purchased immediately.

To be transparent about this, it is essential for those using affiliate links. A simple disclaimer at the bottom of a blog post suits this function and helps your audience to know that from these links, you are making money. Amazon’s affiliate system is one of the most well-known, but there are also Partnerize and Google’s Affiliate Network.

There are thousands of partner services out there that can exploit both the brands and individuals. Be sure to check out there the most highly paid partner schemes before you enter a program.

Learn everything about affiliate marketing – What Is Affiliate Marketing And How Does It Work?

Multi-Level Marketing 

Multi-level marketing (MLM) is a distribution-based marketing network integrating direct sales and distributor downline. For their similarity to pyramid schemes, these home businesses tend to get a lot of bad press. They do have one key difference, in reality. Where pyramid schemes allow people to invest in a false wealth guarantee, MLM organizations are selling actual goods or services to which distributors believe.

Many MLM companies offer a safe infrastructure and excellent preparation, plus additional incentives for high performers. Scentsy, Herbalife, and Advocare are some well-known MLM-field sports.

More About Network Marketing Companies

A large number of new goods were invented during the Industrial Revolution of the 1800s, which had to be marketed to customers. These goods have always been ambiguous and require clarification for potential buyers. Network marketing began to take off with the California Vitamin Company (renamed Nutrilite in 1939) and the California Perfume Company (now Avon) following World War II in the 1940s.

California Vitamin Company’s products were in such high demand that founder Carl Rehnborg started recruiting independent distributors to increase the number of salespeople. Those independent distributors were instructed in their circles of friends, acquaintances, and customers to find new distributors. Representatives were compensated on the profits of the distributors, which they hired directly.

Two Nutrilite workers, Rick de Vos and Jan van Andel formed their own business in 1959: Amway. Amway was developed using the organizational framework of the MLM. It paved the way for MLM companies to establish themselves in other countries such as Canada, the UK, Australia, Germany, and France. Amway enabled companies such as Panasonic, Palmolive, and MasterCard to incorporate network marketing in their marketing strategies for the omnichannel. Since 1989, Amway ‘s popularity has also led them to sponsor an NBA arena, the Amway Center of the Orlando Magic (and the older Amway Arena).

Throughout the 1980s, the U.S. financial system had been changed. A global boom coincided with the entry of women into corporate life. These women were a big target for network marketing companies because they were searching for jobs that would allow them to earn money without neglecting their kids and families. Within these firms, women were able to acquire high positions, creating opportunities for women to achieve financial independence without giving up their families.

Network marketers began to harness the influence of the Internet in the late 1990s. The implementation of online stores and electronic orders made it much easier for individual retailers and companies to employ social networks. Since social media networks are growing, it’s becoming popular to see people in your network advertising for companies like Rodan + Fields or ItWorks.

The marketing of the network categories is carried out in will continue to expand and change as society does. Building relationships will, therefore, always be the secret to effective network marketing at its heart.

Things To Keep In Mind When Entering Network Marketing

If you are ready as a network marketer to start your own home company, there are a few items that you should think and study first. These organizations want to be able to access their friends and family network.

•    How old is this enterprise?

•    What kind of good or service do they offer (and do you find it valuable)?

•    How fair and generous distribution of pay is?

•    What is that company’s integrity?

•    Is there good momentum and timing at the company?

•    What support or training does the firm offer?

As in any profession, you have to make sure you and your customers are safe. There are a significant number of scams, which appear to be opportunities for network marketing. To start research into network marketing organizations, using the essential checklist above.

Remember, it’s a business. You are your boss and your member of staff. If you want to call the shots, you have to be alright to face failure and try again.

Remember, not everyone in your network will be helpful.

Often, have a good idea of how this is impacting your taxes and finances. Consider hiring an accountant if you are not versed in accounting. A lot of people specialize in working with home-based companies.

Good Mentorship Can Make You Rise In Network Marketing

If you joined a marketing network company, the chances are that you’ve been hired by someone you meet. This person was probably longer around than you and will act as your mentor before you get off your feet.

Helping you succeed is in the best interests of your mentors, so be ready to listen to them and learn the system. Equally important, when the time comes, you must be a good mentor. If you are recruiting someone into your organization, support them and teach them how to be a successful marketer in the network. Building a long-term relationship is how you’ll find success in network marketing.

We covered almost everything about network marketing to know, including what it is, the different types, its history, how to choose an organization, and the importance of mentorships.

As you go ahead and use your network to sell a product or service, keep in mind that they are your friends and family before they become your customers. Firstly building a great relationship and selling a second product is the way to be a successful and effective network marketer.

MLM groups or Network marketing Corporations can offer you an exceptional opportunity to earn some more cash immediately. Every person has equal risk of making cash as an MLM marketer regardless of your work trip and educational qualification.

But the first-rate reason to work for an MLM company is that you can work as a phase-time and gain passive earnings in addition to impacting your usual 9 to 5 job.

Even though there are a ton of misconceptions regarding MLM organizations floating around you, I’m sure you will be able to clear some of the misconceptions properly away after reviewing this post.

Top MLM’s In India That Have Proven To Be The Best Network Marketing Examples

So let us get started and read more about some of the actual MLM groups that are currently operating in India. If you are planning to be part of one of the MLM organizations, then study the important vital points provided right here and adequately check the legitimate web site.

Mi Lifestyle Best Network Marketing Examples

Mi Lifestyle Marketing Global Private Limited is a direct promoter that was established in Chennai in 2013. Right now, it is one of the most well-known MLM companies in India.

The business provides a wide variety of best lifestyle products for day-to-day use that is certified with the assistance of AYUSH Ministry.

They sell a wide variety of food and health products. Go here to get an extra appreciation for their goods.

Modern-day revenue for the company is more significant than Rs 1500 Crore. You can register with the agency, and become a member of their extensive distributor network.

You don’t need to pay any enrollment fee to join the MLM organization.

Amway India World-Renowned Network Marketing Company

Amway is one of the MLM associations with the most establishments working in India. This business is no longer an Indian boss anyway with one hundred and forty deals of work environments and fulfilment centres in 34 urban communities; it has acquired significant proximity in India.

By approved advertising, Amway provides more than one hundred and fifty individual products for consideration and wellness. Amway is primarily recognized by the world’s No . 1 Nutrilite supplement brand for its tasteful products.

To be a part of the Amway MLM network. Registration fees do not apply.

Enter as an ABO, fill in the form below, and submit all the required documents. After 24 hours, an additional ID will be created.


Herbalife is the second first-class, American-based MLM Corporation operating in India after Amway. The organization offers some of the top-notch dietary supplements made from herbs and fruits.

All Herbalife products’ are obtained from their associates and can no longer be sold in any traditional stores.

You earn money both by selling merchandise from Herbalife to any person or sponsoring someone who sells products from Herbalife. You don’t make any cash though with the help of actually recruiting or sponsoring somebody.

To join the Herbalife MLM, you just have to pay $60 for the preliminary membership kit.

Forever Living

Forever Living is known for its unique products focused solely on Aloe Vera, by every other US-based MLM employer.

The MLM Plan for Forever Living is very easy. You just have to become a member of the FBO (Forever Business Owner) and purchase products at a wholesale charge and sell them in commissions at retail price to the income of your friends up to 43 percent.

In rewards, you receive Group Volume Bonus up to 13 percent for each of the group members below you and Leadership Bonus, depending on the role in the organization, you get 2 percent to 6 percent.


Medicare set up through Sameer Modi is one of the country’s fastest-growing Indian MLM organizations.

It provides a wide variety of products from groups such as Beauty, Skin Care, Personal Care, Homecare, etc.

What separates Medicare from other MLM organizations is their unique business model, often known as Azadi Program.

You can buy products 20-25 percent more cost-effectively as a Medicare consultant and sell them to others, earning a 25 percent profit at a significant income. Power Seller Bonus is awarded to consultants with a higher selling volume, which can be between 5 percent – 20 percent depending on BV (Business Volume).


RCM is one of India’s largest direct selling companies with more than 10 million directly supported companions unfolding throughout the world.

Unlike Amway or Herbalife, the main products of RCM are foodstuffs, cosmetics, and garments. It presents more than 750 types of products. Visit their list of items, here!

If you’ve evolved into a direct seller, you can start RCM product ads and receive rewards based entirely on transactions made by yourself and people in your community.

You can buy products at a 15 percent discount and promote a 15 percent to 20 percent higher MRP revenue in profits. On the purchase made by using a man or woman in your group, you also get 10 to 32 percent.


In the twelve months, its sponsored business started working, imparting excellent health and non-public care goods.

Right the company has over 2000 online and offline income shops spread across India with 650 places of work.

Vestige offers a wide variety of products, from dietary health supplements to air cleansers to private treatment. The product list can be accessed here.

First, you register as a Vestige Dealer and begin to sell your goods to people.

However, you earn cash by not selling products exclusively to others in the form of leadership bonuses, pooling income, and performance of your endowment.


Oriflame, a business of Swedish splendor, has a massive presence in India. It provides fantastic skincare products in the broadest sense. You can take the appearance of being here at all of their products and manufacturers!

But Oriflame isn’t a sole employer of MLM like RCM or Herbalife now. Customers will purchase items directly from their website, so they do not want to buy from a direct seller.

As a marketing consultant, you can register with and start selling products on their behalf. When you register as a VIP buyer, you can purchase products at a 20 to 40 percent discount and sell it to customers at a larger MRP.


Unlike Oriflame, Avon is the world’s largest direct seller of beauty products. They are currently in more than 70 international locations and have been operating in India for 20 years now.

Avon, in general, provides women related beauty and skincare products. By registering here, you will become an Avon Consultant.

After becoming a representative of Avon, you can buy their best-in-class products at a reduced price of up to (from 15%) 30%, promote them to your friends, and earn commissions of over 50%.

You can develop a crew and earn additional commissions on sales to your group. You receive a commission based on the calculation and position of your community within the organization.

Future Maker

Hisar, Haryana, is wholly based on Future Maker Life Care Pvt. Limited is one of India’s fastest-growing direct-sales companies. Founded in 2015, the agency is very new and has since expanded phenomenally.

Future Creator provides products in the category Nutrition, Personal Care, and Homecare. Browse through the list of their company here.

You will emerge as a direct seller for Future-Maker through a present direct seller, without any difficulty. There is no subscription charge, and you do not have to buy any of their promotional content on top of that.


4Life is a US-based direct selling company recognized as customary health and wellness suitable for its food supplements.

What makes 4Life exclusive to Amway or Herbalife is its special weight loss supplements. Full list of the product from 4Life.

4Life lends its distributors a high-quality compensation sketch. Distributors can make a lot of Retail Sales cash. You can buy products at a wholesale price as a dealer and resell it for a retail cost of up to 33 percent profit.

You can receive a 25 percent fee to support optimistic styles of products with higher LP (Life Points).

DXN India

DXN is a multilevel advertising company based mainly in Malaysia but also popular in India. Using Lim Siow Jin, the company used to be headquartered in 1993.

DXN India is now known for its exclusive products, which are not available via various MLM companies. Mushroom types such as Ganoderma, Reishi, Lingzhi are the unique presentation of the company other than food supplements, liquids, and products of non-public care.

As a direct seller, people are a part of DXN because remuneration is provided through the product.

In retail earnings, you can earn 15 to 20 percent and 6 to 21 percent as a team bonus depending on your sales level.

Hope this article helped you understand the concept of network marketing.