Definition : Network or Multi Level Marketing may be defined as a distribution channel/ sales method wherein the manufacturer directly sells to the customer at a preferred rate and also gives the customer rights of selling the same product(s) for certain compensation/ incentive. Thus, firms involved in selling through network marketing have a well developed system of functioning based on the concept of Network Marketing • How Does the Model Work? 1. According to the model, the firm motivate the customers of the company to sell its products By way of Network Marketing (direct selling).
2. Now, after purchasing, theses new customers will automatically have
agency rights for marketing the same products to other people.
3. Thereby increasing sales and recruiting more marketers (consultants).
Advantages of Network Marketing: The consultant gets the product direct from the Firm, hence the material is always genuine.
The products will be of superior quality at affordable pries and in appropriate
packings.
These products will not be available at retail outlets.
Multilevel marketing allows sellers to build a business through their own sales efforts . Presented By: SAFA AMREEN Roll No: 97
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