The concept of network marketing has two different meanings. In general, it is synonymous with multi-level marketing and often mistakenly considered the same as a pyramid scheme.
The idea of “network marketing” is often used to create a marketing concept based on the interconnectedness of market participants and transactions, and stresses can be described as the application of systems thinking about marketing. Under the premise of network marketing measures, see the discipline as a constant dyadic relationship as a buyer and a seller. Network marketing tries to look for this restriction to increase transactions and relationships from the perspective of all stakeholders.
These perspectives on the industrial market opened, also known as B2B marketing, where multiple contact points are typical. Often there are a number of decision makers in a company of “mall” have. Likewise, marketers are scheduled for a “sales team”. With several players on each side of the operation, a complex network is created. This paradigm is further complicated by players such as goalkeeper resulting information, influencers, developers, customers and intermediaries. This network can expand over time, more people get involved.
The phenomenon of network marketing seen as a structure of social networks, where the associations between the implicit links should include both potential feedback loops, the system should be implemented as a whole.
Instead of the regular distribution of current that moves from manufacturer to wholesaler to retailer warehouse keeper of the end-use business network marketing network market with self-administered products directly from manufacturer to end customer.
Marketers bring a local government share of profit on every sale they make. Although it is possible and highly advisable to make an income by selling to customers directly to the end, the real impact of network marketing is that you have the right to build a layer of other independent marketers below, and part of the whole sales.
There is limited time for which a person spends at work. Through sub-levels, together with a merchant, he can multiply that time. Consider sub-levels of 100 people to share their problems, and only one hour a day, five days a week. Be done in a month of work 20,000 hours. This would produce a person of 10 years for the same amount of work.
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