Network marketing facilitates the distribution of products and services through word of mouth promotion, while capitalizing on the exponential effectiveness of duplication. In conventional sales and marketing a few representatives are responsible for large volumes of sales. In Network marketing a large number of representatives are responsible for a small number of sales. And in network marketing the sales force is compensated on a multi-level basis as opposed to the traditional single-level pay plan.
At this particular time in history, when traditional business offers so little security, network marketing introduces a system in which common people can invest a small sum and, through sheer tenacity and determination, rise to staggering levels of financial reward and personal freedom. And this can be done from home. Seventy percent of all direct sales distributions do this business from home. You avoid the usual pitfalls of running your own traditional business: commuting through traffic, payroll expenses, cost of employee benefits, advertising, overhead, bookkeeping, and accounts receivable.
The industry has evolved considerably over the years. It began as a home-based business on one-on-one direct sales. While still a home business, it transitioned into a business more focused on building an organization of sales people, each of whom is responsible for a small amount of sales. Today, it is moving toward a high-tech business that utilizes the computer, the Internet, e-mail, voice mail, and fax-on-demand, sophisticated telephony, and a multitude of electronic media, including audios, videos, CD-ROMs and DVDs. These various forms of technology are used as a form of educating rather than selling to prospective business associates.
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