By:

Karishma

Network Marketing

Introduction

History:

• It is generally accepted that the first network marketing plan was introduced in 1945 by the California Vitamin Company( shortly afterwards to become Nutrilite). The plan

allowed Nutrilite distributors with at least 25 regular customers to recruit new distributors and draw a 3% commission from their sales.

Objective

It is a method of marketing that utilizes independent representatives to reach potential customers that a company otherwise would not reach

with traditional online or offline marketing methods.

Definition:

• A marketing strategy in which thesales force is compensated not onlyfor sales they personally generate,but also for the sales of the othersalespeople that they recruit. Thisrecruited sales force is referred toas the participant's "downline", andcan provide multiple levels of

compensation.

It’s a part of Direct Selling………..

COMPANY CUSTOMER

It’s Types

1. Single Level Marketing 2. Multi Level Marketing

Single Level Marketing

Why are companies willing to pay you, forthem… They want access to your network, that is your

network of friends and family members!

They know that word-of-mouth marketing is a far

more powerful and effective method of marketing,

especially, when that message comes from those

whom we know and trust!

Benefits of Network Marketing ………

• Low start up cost.

• To Utilize free time properly.

• Low tax Amount.

• Small amount of risk is involved.

• Personal Development.

• Support From Up-line Members.

• Freedom of Time.

Criticism of Network Marketing • Highly difficult to make a

profit (less than 1% make a profit).

• High level of rejection (and resistance from the public.)

• Constant meetings

• Lack of management control systems

• Time and money travel

• Pyramid infrastructure

• Strains personal relationships

Example of Network Marketing:

star distributer

star distributer

Thank you

For Listening…