Forms of Network Marketing

This section describes the three forms of network marketing that relates the number of customers with the sales person. This also identifies the kind of products that can be sold through these different forms.

The section very briefly makes you aware of the differences between the network marketing and direct selling.

It is good to identify with the real life example to understand the concept clearly. So, this section tells you who can be called a leader and accordingly who is the leader.
 

One-to-One Selling

A salesperson approaches a single potential user to sell his products. Producers of personal care products, detergent powders, cleansers, confectionery items, water purifiers, Encyclopaedias, are doing one-to-one selling.

One-to- Many

In one-to-many selling many (party of relatives, neighbours and friends) get together and are organized in the form of a party. A salesperson, who may be one of them or an outsider, demonstrates his products and takes orders. Examples of such products are health products, beauty products, non-sticking utensils and the likes. Tupperware, Lakme, Oriflame, have been selling like this.

Multi- Level- Selling or network marketing

This kind of marketing is to help others in building their business. A company recruits independent distributors for its products. Each of these distributors sells the products and recruits their consumers as sub distributors and these sub distributors also do the same to sell their products. As the process of marketing passes through many levels of distribution it is called multilevel marketing (MLM). Modicare and Amway are its typical examples.

You can also check Selection criteria for Network Marketing and Benefits of Network Marketing.

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