- Network marketing is also known as Multi-Level Marketing (MLM).
- It is a form of franchising based on the concept of word of mouth advertising. For example, what if you watch “Jurassic Park”, you like the movie and you recommend it to your friends, who in turn tell their friends. At the end of the week or month, Walt Disney paid you a commission based on the number of people who paid to watch the show because of your recommendation! Wouldn’t that be great?
- Companies such as Walt Disney paid advertisers millions of dollars in advertising money. Network Marketing companies on the other hand, take this sum of money and instead of paying to advertising companies, pay this sum of money to independent distributors who help them to advertise via “Word of Mouth”!
- Would you agree that franchises like MacDonald’s and Kentucky Fried Chicken are hugely successful? The reason is that they are duplicating a successful system. But flash back to the early years and it was labelled as a scam!
- Similarly Network Marketing uses the concept of franchising to let ordinary, common folks to run their own business with an easily duplicatable system but at a fraction of the capital investment and with minimal risk! Minimal risk because of the low capital investment required.
- Network Marketing has been labelled by the National University of Singapore’s Graduate Society as “The Wave of the Future”! Companies like IBM, AT&T, Colgate Palmolive and even Singapore’s biggest local bank DBS, use network marketing to distribute their products!
- In the US, Network Marketing is a US$106 billion turnover industry with a growth rate of 25%!
- Consider the following: in the past 7 years, in US, 64,000 millionaires achieved their fortune through Network Marketing! The growth rate is estimated at 20%.
Chapter: Network Marketing :: 26 April 2007
