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Network Marketing Business Plan

The other widely used name for the network marketing business plan is multi-level marketing, this method of marketing is one of the fastest growing business cultures now. This strategy is used by many companies to promote their products or plans. A company uses this method of marketing as a part of their plan or as a whole.

This type of network marketing business plan was first introduced in the year around 1980, in the beginning there was a lot of controversy when this type of marketing was introduced. This marketing plan was accused of bypassing certain rules and regulations of many companies. But then later the network marketing business plan was assured that it is legal, however certain companies were charged guilty for price fixed and also showing wrong claims.

The way how the system works id pretty much basic, some of the main points to be kept in mind is that in this method, the company hires a very few number of sales person. These sales persons are usually independent people, these sales persons are given the job of advertising about the company or product by any means they wish. Except that they should not misuse the name of the company, the sales person can start with his own friends, family members.

The person who promotes the product or the company to another person gets an incentive or a commission based upon how many contacts he adds to the company. The more the person makes other people join the firm, the more he is paid. In most cases, a person who is joined new to the company is also allowed to introduce another person to this company or firm or their policy. Likewise it continues like a chain of network, and hence it has got its name multi-level marketing.

Some of the main advantages of this network marketing business plan is that this type of advertisement does not involve an office in every city or a TV commercial. The advertisement is done in person face to face by people who know each other. Hence the cost of setting up offices, advertising boards is not involved. Another advantage is that if the product is worth the money and satisfying for the customers, then there is a good chance of increase in the sales percentage because the person who has enjoyed the benefits of the product or the policy will be working in a full swing to promote this product. Hence this network marketing business plan has become a success in many ways and there are a lot of companies who have adapted this type of marketing.

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