Network Marketing, Multi-Level Marketing [MLM]:
This term is quite popular nowadays and it is possible that you may have heard this word too. Regarding network marketing, there are several types of questions raised in your mind – What is Network Marketing, Multi-Level Marketing [MLM]? how does it work? Can it make a lot of money? Is it worth it to connect? Is it also a fraud? So let’s understand some facts about network marketing.
What is network marketing
Network Marketing or Multi-Level Marketing (MLM) – A marketing model through which a company or a business organization delivers its goods to the people.
It is meant by people to reach people – ‘By oral propaganda’ means to tell the person about the product to some other person about the product, the use of the product and the quality and motivate the other person, that I have bought this product and you also take it and attached to the company and advise to add more other people and buy product. Give it verbal propaganda or Word of mouth promotion.
How its work?
We can understand the way we work for network marketing by a simple example – this is exactly the same – as you have a samosa shop in the market and you enjoy the samosas very much there. You like to eat samosas at the same samosa shop. After moving ahead of you, you advised your four friends to eat samosas from the same samosa shop, all four of your friends used to eat samosas there and they even preached to four or four friends that ate Samoshi’s shop… In this way, the sale of that samosa was propagated by you and the sale of the samosas of that Samosas increased qualitatively.
More or less, similarly, a company sells its product through network marketing.
Can a lot of money be made from network marketing?
When it comes to earning money from network marketing, then ‘yes’ can earn a lot of money from it. But first, it is necessary to understand how money is made in network marketing?
To understand this, remember the simultaneous example. Suppose that you have promoted the product of a company in four friends, and all those four also promoted the product in their four friends and then those four-fours also promoted four or four friends, (1 * 4) + (4 * 4) + (4 * 4 * 4) = 84] Product sales and company were promoted to the people. Academic Hub Now you do not get anything from the promotion of a comrade, but by the promotion of a company’s product, that company gives you a share of the total profit made by the company to your promotions, in the form of commission, so your friends Will also receive part of the profits of the products sold by them by the company as a commission. In this way, people can make money through network marketing by adding and promoting the product.
What precautions should be taken before joining network marketing?
Prior to joining a company, the following facts should be carefully examined about that company: –
- Company Principles and Products – The company’s principle should be well understood on which principles the company has made its future plans. Apart from this, what is the company’s product? How is its quality?, How much will the product customers like? Or will not come, how is availability available on any other online or offline store in the product? On understanding these points, the nature of the company will be known.
- The legal validity of the company should also be thoroughly investigated, which is in line with the guidelines for Network Marketing on 26 October 2016, in accordance with the guidelines of The Gazette of India, notified by the Government of India (Indian Constitution).
Apart from this, how are the people in the company, how are they trained in the company, and how are the leaders of the company? All these things should be examined carefully.
Ultimately, by selling the company’s product, a company gives a part of its sales as a commission, to the promoter. Therefore, if a company says that, you just get money to add people, then it is worthwhile to stay away from that company.