NETWORK MARKETING

ASHAWIN KHER

Group No. 11

Name Roll No.

Deepak Borole 9110

Sachin Gawali 9117

Vinodkumar Gupta 9120

Mayur Kasale 9123

Manish Singh 9154

WHAT IS NETWORKING?
 Networking is the cultivating of mutually
beneficial, give-and-take, win-win relationships.
WHAT IS MARKETING?
 A marketing is an organizational function and a
set of processes for creating , communicating
and delivering value to customers and for
managing customer relationships in a way that
benefits the organization.
 Getting in touch with potential customers
WHAT IS NETWORK MARKETING?
 Network Marketing is also known as "Multi-level Marketing"
(MLM) and sometimes "Referral Marketing"
 It is simply just another way for a company to get into touch with
their potential customers, by paying them to spread the word
about the company and products - in other words, incentivized
word-of-mouth advertising.

 Every new customer has the opportunity to become an distributor

for the products of a Network Marketing company, if they choose
to do so.

 Network Marketing is not about using people, but about getting

other people involved in the business as your partners.
NETWORK MARKETING
HISTORY OF NETWORK MARKETING
 1940 – California Vitamins
 1956 – Nutralite
 1959 – Amway
 1979 – Acknowledgement by FTC (Federal Trade
Commission)
PROS AND CONS ABOUT GETTING INTO
NETWORK MARKETING
Pros of MLM
 Easily accessible support
 Motivation and Training

 Good products
 Incentives

Cons of MLM
 Negative perception of people
 Dealing with rejections
THINGS YOU MUST KNOW
 Solid Company Background
 Who are the leaders
 Re-usable Products
 High Demand
 Good compensation plan
 Delivery of products
 Great training
 Conventional marketing VS Network
marketing

Conventional Marketing Network Marketing

• Manufacturer-Wholesaler-retailer- • Manufacturer-network marketer-consumer
consumer
Distribute
consumer wholesaler
r or manufacturer-consumer
retailer
Manufacturer
• Advertisement cost is high • Advertisement cost is comparatively low
• There is no residual income • Allows you to earn after sales
• There is less emphasis on personal • Personal development is theRS major
RS 3/- 10/-/-
development ADV MKTG ingredient to success
logistics

• You are dependent on others • You are your own boss

• Working time limit • No working time limit
ADVANTAGES OF NETWORK MARKETING
 Freedom
 Spending of more time at home with family
 Own boss
 Desire to get up when they want to
 Flexibility for working
 Avoid big company headaches
 Convenience of working WHEN they want
DISADVANTAGES OF NETWORK MARKETING

 Scammers
 Consumers
 Associates
 Lack of Motivation
 Bad Investments
 Advertisement
 Product
 How MLM works

RATIO
1:1 YOU Rs.1000/-

Left Right

A B
RATIO Rs.2000/-
YOU
1:1
Left Right

Rs.1000/-
A B (Both)

1 2 1 2
 BINARY
RATIO YOU Rs.4000/-
1:1 Left Right

A B Rs.2000/-
(Both)

C D E F Rs.1000/-
(Each)

1 2 1 2 1 2 1 2
BUSINESS PLAN
I – WAY PVT LTD. NH17

Promoters

Vinod Gupta
Sachin Gawali
Manish Singh
Mayur Kasale
Deepak Borole
PROFILE OF THE COMPANY
 Vision
- Inspiring people to live better lives.
 Mission
- To help thousands of our willing Associates to
achieve good means of life through our
program.
- To become the best network marketing
company, by providing Quality products.
PROFILE OF THE COMPANY
 Corporate Office : Thane

Associate Partners:
 Pact IT publisher (Andheri )

 Dixon bio medical Pvt. Ltd. (Dahisar)

 Giordani Pvt. Ltd. (Vada)

PRODUCTS
 Educational Package – Rs. 4,500
 Cosmetic Products – Rs. 5,000
 Health Products – Rs. 5,000
PRODUCT AND DESCRIPTION

Educational Package
 Basic Course Free
 Introduction to Internet surfing
 Microsoft Office
 Computer Hardware
 Computer Course Rs. 1,200
 C, C++, Tally, HTML, Networking
 Advance Course Rs. 1,800
 JAVA, Visual Basic, SQL and Oracle
 CD’s and V-SAT lectures Rs. 1,500
 Online testing and evaluation
PRODUCT AND DESCRIPTION
Health Products

 Health Product
 Massive Weight Gainer = Rs. 5000(4kg)

Organic wheat grass powder Weight Looser = Rs. 5000(5kg)
PRODUCT AND DESCRIPTION
Cosmetics Products

 Cosmetics
 Cream Bath (300ml = Rs. 398)
 Hair Conditioner (200ml = Rs. 269)
 Hand Wash (150ml = Rs. 279)
 Shampoo (300ml = Rs. 259)
 Hand and Body Cream (250ml = Rs. 359)
 Lipstick (15.4 g = Rs. 449)
 Lips Gloss (5ml = 329)
 Perfume (Male and Female) (50ml = 1490 for F & 50ml 1290)
 Target Segment
Region – Mumbai , Thane , Navi- Mumbai

Potential customer for…

Education package Health product Cosmetic package

 Colleges  Health Clubs  Families
 Gyms  Beauty Parlors
 Youngster  Cosmetic Shops
 - Distributors are free to promote
- Bad imp ression of Network

- Sellin g Skill

Threats :-
marketing

- Down line raiding (sudden and

short) can occur at any time
- Key dist ributor d ecides to join
another company
Weakness:-

SWOT
SWOT ANALYSIS

Opportunities:-
- Tie-up with big
companies
- Untappe d M a rke t
- Repe titive or de rs
- Compensa tion plan
I nde pe ndent Business
-
St re ngths:-
PROMOTION
 Word of mouth
 Seminars
 Newspaper Adv
 Sponsorships for event
 Social Networking Sites
BINARY COMPENSATION PLAN

Make Two Sales

Left YOU Right

1 2
BINARY COMPENSATION PLAN

1000
Left YOU Right

1 2

3
BINARY COMPENSATION PLAN
2000 2000

Left YOU Right Left YOU Right

OR
1 2 1 2

3 4 5 6 3 4 5

6
BINARY COMPENSATION PLAN
3000 3000

Left YOU Right Left YOU Right

1 2 2
OR 1

3 4 5 6 3 4 5

8 9 9
7 6

7 8
BINARY COMPENSATION PLAN
 1st Cycle 9 Sales you get Rs. 3000
 2nd Cycle 9 Sales you get Rs. 1500
 3rd Cycle 9 Sales you get Rs. 1500
 4th Cycle 9 Sales you get Rs. 1500
 5th Cycle 9 Sales you get Rs. 1500
 6th Cycle 5 Sales you get Rs. 4000

Total sales = 50 is called an -> Orbit

And you receive Rs. 13,000

BINARY COMPENSATION PLAN
Second orbit onwards

 1st Cycle 9 Sales you get Rs. 1,250

 2nd Cycle 9 Sales you get Rs. 1,250
 3rd Cycle 9 Sales you get Rs. 1,250
 4th Cycle 9 Sales you get Rs. 1,250
 5th Cycle 9 Sales you get Rs. 1,250
 6th Cycle 5 Sales you get Rs. 3,750

Total sales = 50 is called an -> Orbit

And you receive Rs. 10,000

ONE CAN ACHIEVE
Month # of Associates Total Sales
1 2 2
2 4 6
3 8 14
4 16 30
5 32 62
6 64 126
7 128 254
8 256 510
9 512 1022
10 1024 2046
11 2048 4094
12 4096 8190

Total Sales = 8190

NOW LET US SEE WHAT DOES IT MEAN IN TERMS OF
COMPENSATION

 Total Sales = 8190

 No. of Orbits = 8190 / 50 = 163.8
 Total Annual Expected Earnings
1*13,000=13,000 + 163*10,000=16,30,000
=>16,43,000
FUTURE PLANS

Future Partners
 TVS motors
 Titan
 Dell

 Samsung
COMPETITORS
 Amway
 RMP InfoTech
 Oriflame
 Avon
 Herbal life
 Swadeshi
 Jaipan
FINANCIAL PLAN
 Initial Capital – Rs 50,00,000
 Website Creation - Rs 15,000
 Registration - Rs 1,00,000
 Copyright - Rs 15,000
 Authorized Office – Rs. 30,00,000
 Promotion (Initial Stage)
 News paper Advertisement - Rs 40,000
 Seminars (Thane) - Rs 8,000
 Sponsorships for events - Rs 1,00,000
 Miscellaneous Expenses - Rs 50,000
THANK YOU