Though Network Marketing is just one way of marketing goods and services, yet it is quite different from direct selling from where it originated.
Products and services of network marketing
The products and services that are priced neither too high nor too low; that people consume in a short period; that are non durable consumable products with repeated demands but not be at the extreme end of consumption are ideal for network marketing. Some of the examples are given in the box below:
Products: i) Children books, ii) Household cleaners, iii) Nutritional products, iv) Water Filtration, v) Weight loss Products, vi) Personal care products.
Service: Communication Services.
Industry Leaders (Real life example)
The leader in industry is one who either starts early than others or has the largest share in the market. The example is Amway, which was the early starter.
Amway: It is a network marketing company founded in 1959 by Jay Van Andel and Rich de Vos. The full form of the company’s name is “American Way”. Amway pioneered the concept of network marketing. The original intent of the founders was to create a business using a novel means of product distribution that facilitates entrepreneurialism, understanding of economic management, and economic independence among its associates (now the term is independent distributors.)
Amway operates in almost ninety countries all over the world through affiliated companies. It operates mainly in personal care products, nutrilite dietary supplements, water and air purifiers, jewellery, and cosmetics. Later on product line grew with a new detergent, and hair care range added. Amway India was established in 1995 and commenced commercial operations in 1998.