Network Marketing, Who is Using Who?

Despite rapid growth in technology and methods of communication

, it has been found that network marketing, in a form unlike what it was years ago, does play a significant role in enhancing the profitability of businesses. There is a saying that goes" The more things change, the more they remain the same" and this seems to be the case in so far as network marketing is concerned. Back in the good old days the cheapest, most efficient and most direct way of getting your product or service out to the market was by word of mouth and personal interaction. This was true whether you were the boss, the employee or self-employed. If Mrs. Green told you that the concoction she got from Mrs. Carter made her lose twenty pounds in a month, Mrs. Carter would have trouble meeting the ensuing demand for the stuff. Word of mouth advertising and salesmanship has merely undergone a makeover.

Network marketing, or referral marketing or multi-level marketing, as it is sometimes called, is basically a fancy title for word of mouth salesmanship. It is really a marketing method whereby use is made of independent representatives to get to potential customers and clients that traditional methods might miss.

Having lost jobs due to the recession, many individuals have acceded to the lure of starting your own business and joined the ranks of the self-employed. This income from home thing is no longer seen as a means to get extra money, but the primary source of household income by many. Kudos to them, businesses have done their homework. They have observed this trend and are finding ways to capitalize on it. This is where network marketing comes in. The relationship between self-employed people and some big business has taken on the characteristics of franchises. The self-employed, informal sales force will use various techniques, such as lead generation, to get the job done where conventional methods may have proven ineffective. Big businesses bank on the potential for their self-employed network marketers to create lengthy down lines; thus they are maximizing their profits.

Network marketing does have its downside however, one of which is its sometimes attendant bad press, with comparisons often being made to ponzi and pyramid schemes. People also would prefer not to have to pay to participate. There arises also the potential for the exploitation of personal relationships, which is not a nice thing if you are the one being exploited. Despite these drawbacks, network marketing does have some value and there are people who will swear by it. If this were not so, it wouldn't still be around today.

Ultimately the question arises as to whom actually is using whom in the matter of network marketing. Obviously the owner of the big business, by virtue of making use of the self-employed person's services, is doing some using. The self-employed individual also, is to a lesser extent using the employer as a means of earning his income. This in fact, is not unlike the relationship between an employer and employee, where the employer uses the employee to get work done and the employee uses the employer as a means to earning an income. If both parties find the relationship to be satisfying, mutually beneficial and desirable, why rock the boat?

Network Marketing, Who is Using Who?

By: Stephen Huston

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