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Benefits of Network Marketing

Network marketing is beneficial to the network marketer as well as to the company which facilitates network marketing.

From the point of view of a Company
  • Network marketing gives an opportunity for continuous expansion of the distribution network which helps to increase the sales turnover of the company.
  • The increased sales means increased compensation or commission to the existing sales force.
  • It becomes easier and quicker for the company to enter new markets.
  • They get cost advantage because of low overheads in the absence of requirement of infrastructure in the form of showroom and stores.
  • Besides this, overhead costs are low because not much advertising is needed.
  • Innovative products can be well demonstrated and introduced by the manufacturer through a distributor.
  • The network marketer can maintain high profit margin on his product.
From the point of view of a network marketer
  • It works by leveraging the times of others.
  • Network marketer’s success or failure is dependent on his own action. So he works as an independent businessman and is his own boss.
  • It becomes easier and quicker for the company to enter new markets.
  • It provides a good business opportunity to many people to earn money by being engaged as part-time or full time with a very little initial investment.
  • It fulfils his desire to work when he wants.
  • It provides easy and fast means of entering the market and making good money.
  • Though the commission structure is less up-front than the other direct marketing methods, it has the benefits of building residual income.

You can also check Limitations of Network Marketing and Reasons for Growth of Network Marketing.