Network Marketing – A Futuristic Business
Network Marketing

Network Marketing – A Futuristic Business

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What is Network Marketing?

Network Marketing made with two words, Network + Marketing. Network means a group of people or things or a channel which are interconnected and controlled by a central organization for a common purpose. For example, televisions network, a railway network, a telecom network, etc.

Network Marketing is similar like this. It is also known as multi-level marketing. Network Marketing is a new business model era which involves a network of people. It may require you to build a network of business partners or salespeople to assist in sales.

Network marketing is a type of business opportunity that is very popular with those people who are looking for part-time. The profession attracts too many people because they can be their own boss, they can set their own hours, and they can work towards their own success. It also requires a low investment.  

Network marketing is basically a medium of marketing that manufacturers use to expand their sales. Manufacturers use them as a distributor and sometimes, these distributors might have sub-distributors. As a result, this leads to a “network” of distributors that operate at various levels of the distribution chain.

Network Marketers are encouraged to build and manage their own sales force by recruiting and training other independent agents. In this method, the commission is earned on the agent’s own sales revenue.

Structure of Network Marketing:

In traditional business, there is a chain between manufacturers to customers. Manufacturers require several distributors; distributors require sub-distributors; sub-distributors require dealers and dealers to require retailers. The retailer provides that product to the end customer. The result is, the cost of that product will be high because all these channel’s costs will be added and the customer has to bear this cost.

But in network marketing, manufacturers do not make use of any well-defined channel. Anyone can buy their product directly from the manufacturer. Once you buy, the manufacturer appoints you as a non-employed individual called distributor. If you make any sale, you will get the commission every time on your sale. The end-user also will get the product at low cost.

Here are the top 5 network marketing companies:

Amway: Amway is the first company that introduced the concept of direct selling in the 1990s. Amway is an American multi-level marketing company. It was founded by Mr. Richard DeVos & Jay Van Andel in 1959 and is the biggest name in the field of MLMs. Amway reported sales of $8.8 billion in 2018.

Tupperware: It is also an American multinational direct sales company and the second-largest direct selling company after Amway which sells leak-proof plastic containers. It was started by Mr. Earl Silas Tupper in 1948.

Avon: Avon Products, Inc. is a multi-level marketing company in beauty, household, and personal care categories. It was established by Ms. Sher McCoy in 1886, U.S.A. Avon had annual sales of $5.5 billion worldwide in 2018.

Modicare: Modicare is the first Indian company to introduce the concept of MLM in 1996 by Mr. Samir Modi. Today, it has a huge network all over India with a wide range of products and it is one of the fastest-growing company.  

Oriflame: Oriflame Holding AG is a multi-level marketing beauty company, founded in 1967 by two brothers; Jonas of Jochnick and Robert of Jochnick It is now a leading cosmetic brand and has a large network with a consistently good number of sales.


Network Marketing is one of the fastest-growing sectors around the world. It is also the best option for those who are searching for a part-time job. It would be their bread and butter for a life-time. It is also good for end-user as they are getting low-cost products with high quality. A survey report said that around 20.5 million people are directly or indirectly associated with network marketing companies in US and every day around 6000 people join network marketing. It is a huge field with unlimited growth. The future of network marketing industries is very bright.

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