Network marketing from Home

Network Marketing: What it Is and What to Avoid

Network marketing, sometimes known as multi-level marketing, is a business model whereby a salesperson sells and markets products owned by a parent company, direct to consumers, thus cutting out the need for a middle man or distributor. Products are usually sold via word of mouth or referrals, rather than from a permanent retail outlet, and the term also refers to the fact that sellers will also be rewarded for recruiting other sellers, taking a percentage or cut of any sales the recruited seller performs.

Network marketing has sometimes been associated with pyramid selling, a similar concept, but one which has come under a lot of criticism for perpetuating non-sustainable business strategies whereby agents are paid simply for recruiting others to the scheme rather than selling a tangible product. Good network marketing practice differs from this as it depends on the potential sales of a trusted product, as opposed to a dubious recruitment scheme inviting investors to part with cash for a product that does not exist.

For this reason, it is vital for anyone wishing to enter the network marketing sector to research the credentials of the parent company carefully and approach with caution to ensure they are not simply being enticed into becoming part of an illegal pyramid scheme which essentially only benefits the few people at the top of the pyramid. It is worth noting that some companies will ask for a small initial outlay to cover the cost of some of the products or catalogues, but beware of firms asking for a large upfront amount. Many successful and reputable network marketing companies work on a commission only basis, so it is important to realise that all earnings may be sales or recruitment related, and that there is no salary as such.

Successful Network Marketing Companies

As a sales and marketing model, network marketing has been proven to be an effective business tool, with many large companies employing this strategy worldwide. Some of the biggest names in the network marketing field include Avon, the US cosmetics brand that started with a small door to door sales force and expanded to become a highly successful global enterprise. Indeed, Avon is the largest direct selling company in the world, with highly acclaimed products, diverse business strategies and an online presence, but it is still reliant on the original network or multi-level marketing business model.

Offering flexible working hours which have traditionally benefitted their mainly female workforce, Avon sellers continue to work on the basic model of selling direct to friends, colleagues or contacts, recruiting more sellers, and receiving a percentage of profits generated. One of the many advantages of this type of network marketing opportunity is that it not only offers a decent level of income and company benefits with flexible hours, but also that there are a raft of incentives and prizes which can boost the representative's income and help them strive to more success.

Avon, like most reputable network marketing companies, will not charge a large amount upfront for new recruits, but instead will give them the opportunity to start earning immediately for only a small initial outlay. Other parent companies in a similar vein to Avon include Kleeneze, who sell a range of home and garden products, and work in a similar way to Avon with a comprehensive incentive structure and plenty of benefits for their representatives.

Like Avon, Kleeneze has been established for many years, and is one of the UK's most successful network marketing companies. Other firms who operate on these lines include Oriflame, a Swedish skincare and cosmetics brand who also reward representatives with sizeable sales commissions as well as rewards based on any sales made under a team leader's management.

Genuine Network Marketing Opportunities from Home

All of the network marketing companies mentioned above are examples of businesses who can offer potential new recruits genuine business opportunities which they are able to manage from home as freelance consultants or sales representatives. In the UK, more and more companies are employing network marketing as a business method, and include brands as diverse as Usborne, publishers of children's books who recruit marketing consultants to sell their products direct to contacts, and jewellery firms such as Stella & Dot who include selling parties (or party plans) as part of their network marketing strategy - a successful practice which has been employed by Tupperware and other network marketing giants.

The chef and cookware brand, Jamie Oliver at Home, is another company successfully diverging into the selling party model, with consultants or party hosts setting themselves up with a range of products to be sold specifically in social 'at home' settings. Many network marketing consultants have young children and choose to base their working hours around school and child care commitments. For this reason, many of these network marketing opportunities are ideal as they can be undertaken during the evenings, or within school hours.