What is Network Marketing?
Network marketing is a new method of presenting products and services in which customers play the most roles and participate in the distribution process.
Network Marketing is a legal trade which is developing rapidly globally and millions of people are active in this trade. Consumers of products and services can be active in this trade according to their abilities and time limits, and accordingly utilize from this trade's incomes in a justice way. We call these consumers (Independent Sales Representatives).
The traditional method of distributing products and services from the manufacturer to the consumer passes through a series of agents and distributers accordingly this makes the total price of products and services very high. Besides, a lot of money will be spent in advertisement, office rent, transportations, and etc.
In Network marketing manufacturers present their products and services directly. In this system manufacturers can spent more money in raising the quality of products and services. They also can present part of returned money, which is saved through selling products and services to consumers directly, to supportive customers who are active as Independent Sales Representatives.
As compared to other traditional methods of trade, Network marketing is a perfect method of distributing products and services, in which all the three sides of manufacturer, Sales Representatives, and consumers make most benefits. Let us clarify how this is happen:
In this system manufacturers can spent more money in raising the quality of products and services.
Sales Representatives can make big incomes.
Consumers can utilize from products and services with more affordable prices and in higher quality.
Historically, this trade was started and officially activated in the sixties of the previous century and became global, and became more enhanced especially in the first decade of this century.
According to figures by The Direct Selling Association (DSA), until 2013 more than 90 million people were active in t Network marketing and the volume of Network marketing trade was more than 160 billion dollars.