Network Marketing is the promotion of goods and services directly to potential consumers overtaking the traditional market chain of mediators and brokers, and away from fixed retail locations, throgh one-to-one direct personal presentations, or public meetings, or any other personal contact arrangements up to online selling.
Network Marketing or Direct Selling is based on a very common thing we do as human beings, without much regard to its significant effect on the circulation of the economy; speaking of the "Word of Mouth".
What many of us might not realize is that "Word of Mouth" advertising sells much far better than hard-sell advertisements which we are constantly under its bombardment in all media types. It is also called "Referal Marketing". This gossib we share with our friends about things we try and the personal recommendations we make has a deep impact on others, and affects their financial decisions.
Thorough observation tells that there are lots of businesses around us are growing with no need to spend a cent on advertisements, just for this Word of Mouth.
Word of Mouth
"Ask a fitter and do not ask a doctor" .. The personal recommendations we give to people with whom we reciprocate trust; both Experience and Trust are the foundations of the Network Marketing business model which emerged at the beginings of the 20 century, and continued to grow and spread all over the globe.
Network Marketing provides effective solutions to a broad spectrum of people who wish to run their own business but lack the required experience or fund.
Noadays, under the rising demand on jobs versus limited chances of emplyment (U.S. Job Seekers Exceed Openings by Record Ratio - The New York Times), due to recession and the austerity measures taken by employers, and under inadequate wages, under all this, comes Network Marketing as one of a kind solution to unemployment or the threat of being unemployed or poorly paid.
"Virtual Office", "Home-based Business", "Multi Level Marketing", and other bunch of terms brought to modern economy by Direct Selling industry, and have been emphasized over the last two decades since the internet boom in early 90's.
The following figures highlight the enourmous growth of Direct Selling and Network Marketing:
- US Census reports: about 38 Million home-based businesses in the US
- By 2015, experts estimate 50% of American households will be involved in a home-based business
- Over 27,000 MLM companies have been started in the world
- Today in the US, there are over 15 Million MLM reps generating over $30Billion in sales
- Globally in 2010, there were 74 Million MLM reps generating over $120 Billion in salesGlobally in 2010, there were 74 Million MLM reps generating over $120 Billion in sales
Network Markeing is the world new revolution of income distribution and making fortunes by its fair model that gives everybody an equal chance to start his/her quest for financial independnace, with no risk and unlimited potential of income. Given Hard Work and Continuity, an ordinary person can really make it through Network Marketing.