When you look about online marketing networks, 2 somewhat quickly opposites appear between them: one will be the pyramid selling and other media or perhaps marketing network (or perhaps multilevel marketing and advertising). This content will help you to distinguish between these terms and to analyze if you're interested in applying a method based on marketing networks in your company.

Marketing networks The so called marketing networks refer to a set of independent distributors that promote products directly from the manufacturer; These distributors can, in turn, associate others and obtain a specific gain for each sale of these.

These networks are getting to be extremely popular in recent years on account of the proliferation of freelance profiles, freelancers or, just, people are motivated to attain a secondary source of revenue. Nonetheless, it's considered that the pioneer brand of this particular sales strategy was the American beauty products brand Avon (born at the conclusion of the 19th century) and that today there will be more than 6 million distributors worldwide.

Differences between pyramid selling and network marketing How much controversy around the term "network marketing"! Sometimes it's hard to distinguish if a network marketing is legal or even behind it is a scam. Pyramid selling is actually prohibited in Spain, but not network marketing or maybe network or maybe multilevel marketing.

Spanish law is clear about this: the fact of receiving compensation for the entry of consumers or drivers to the program is actually deemed a fraud; although it's not considered fraud if that compensation derives from the sale made of a product or perhaps service. This's the crux of the matter.

If you believe that network advertising and marketing may be an alternative for your company, make sure before fleeing the concept of pyramid selling, as well as moving away from factors such as:

that pricing is not done without taking into account its market value and competition
that the initial expense of participation of the distributor is actually zero or even very low
that distributors are not pressured to consume the company's products
that compensation schemes are clear for distributors and for those that can achieve the next levels
How Network Marketing Works
Let us take an example: let us say you have a business enterprise that manufactures cleaning solutions (or possibly you import them). You are clear that your item is not the regular fundamental necessity, since it provides something more to the consumer. Hence, you're not looking for a large distribution, but a much more selective one. You have a few shops although you would love to expand your sales network with a small investment. You could think of community advertising and marketing.

The goods of yours, along with being in the stores of yours, might be in the hands of independent distributors which help promote and sell the items. They will receive a commission for each sale and you would not have to invest in, for example, the creation of a brand new shop.

marketing networks

Of course, just as it does not demand a similar investment, a distributor does not have a similar level of sale as a department store. So, the best way to incentivize and expand your network is for that distributor to create, in turn, its own network and benefit from the sales of the distributors in that 2nd network.

After reading this info, do you believe you will use a network marketing to your marketing and sales strategy? Tell us the opinion of yours!

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