How Network Marketing works and its Characteristics?

You may ask how Network Marketing works? Network Marketing is also known as MLM or Multi-Level Marketing.

If I explain very simply, one company has products and services to sell, they look for representatives to sell their products and those representatives recruit other new representatives to do the same. So it’s like building your own sales force and leveraging your time.

One very good thing about network marketing or multi-level marketing is it can be available to anyone. Are you a single mom? Or a student who wants to earn while studying? Are you not having a full-time job yet? Are you planning to put up a business but doesn’t know how to start? Network marketing is a good part-time job also but it is not simple.

You cannot just think of doing network marketing and leave it like that. If you focus on this field, you will experience a big twist in your life. That’s a good thing right?!

network marketing How does Network Marketing work for you?

One of the best strategies for this is Word of Mouth. Product selling or Product marketing using word of mouth is just the same as telling your friends about your favorite movie or place to eat. It is much better if you are introducing something that interests you also.

For example, the product you are selling is the slim capsule and you are using it also since you want to reduce your weight. If you are getting a good result then you are telling it to your friends, you are influencing them to get your products and be your recruit.

Nowadays, since technology is really rising, most are using online marketing – not only for selling but for getting new representatives also. Some online strategies you can do is social media marketing, video submission, product posting etc. Remember to do it in a correct way to get more customers and influence them to join you.

With these strategies, you can sell your products, get new recruits and earn commissions. Once you already have new representatives, you can earn also from them. And those new representatives can look for their new representatives also and so on. That is how Network Marketing generally works.

Characteristics of Network Marketing

1. Direct Sellingnetwork marketing - rick billings

You do not depend on anything, the representative is selling the products directly to her/his friends, relatives and other potential people that they can recruit. The responsibility of selling the products will be on the representatives which they can get a commission. This can be called as face to face selling.

2. IBO or Independent Business Owners

Since they are directly selling the products, it is also like they are owners of their own business. They will depend on their own skills in selling so they can get new recruits also. This how network marketing works for individuals.

3. Commissions

This kind of business has no fixed salary. They are earning from the products they sell and from their recruits who are selling also. The representatives are receiving commissions for the sales they perform.

4. Responsibility

The representative is accountable for his own sales. The more they sell, the more they earn. The more new recruits they get, the more they can earn commissions. The sky is the limit.

network marketing - rick billings5. Advertising

The company doesn’t require their representatives to use any traditional advertising methods to sell products and get people. They encourage them to speak and use your convincing power as a part of direct selling and share on social media. It is better to use your own experience while convincing your buyer, at least they know whom they can trust.

6. Big Hierarchy

The system can make a big hierarchy. The example of this is the person “A” has recruited the person “B”. The person A can get a commission from the product he or she is selling, and at the same time can get a commission from the sells of person B that is under him. To earn more, the person B recruited person C under him so he can get commission also and so on.

Network Marketing needs a big effort to sell and to earn. But do not forget that this is not for your own sake only, you have a team. Always remember that great and solid team is a core to be successful in network marketing business. To learn more about how network marketing works, visit our website RickBillings.com.

Rick Billings


Rick Billings is one of the top leaders in his primary company. He trains people in online and offline marketing and values building relationships with new people he meets every day. If you're open to earn an extra stream of income see what Rick has to offer. Click Here