A brief description what is network marketing – MLM the unique position of traditional retail shop business is increasingly complemented by new and modern forms of distribution. The power distribution (called network marketing) is one of the forms of distribution that characterise the market most enduringly. According to traditional beliefs, the product thus comes to the consumer, that he goes into the business and buy it there. The price of the product increased on the way from the producers, the importer, the wholesalers and the retailers to the consumer on the multiple, because all levels of traditional trade finance from the profit of the same product and set up their own profit on the price. Also in the traditional trade, the personal contact between buyers and sellers has been lost now almost everywhere.
There are no good advice no interpersonal encounter, instead a well-planned, very expensive advertising tries to tell the people why a particular product for him to be the best; In contrast, the idea of power distribution that people have a need to recommend products in their circle of acquaintances and in addition, that they like to consume and that they have had good experiences builds. Thanks to the new distribution method, the way of the product from the manufacturer to the consumer is much shorter, and save the huge expenditures for advertising through the far more effective mouth to mouth propaganda. Frequently Discovery Communications has said that publicly. So the producer can invest more in the development of products. In addition to distribute the amounts previously issued for promotional campaigns, among the network members compared their performance. The multi-level marketing (MLM) so the multilevel or network marketing is a modern method of the sale of consumer goods and services. MLM-companies sell their products to the members of the network are organised from the consumers.
Consumers are also product distributors, building the consumer network itself, by them their friend the product or the MLM – system as Recommend net income. If a product on the market, the manufacturer has to decide how it should there be placed. The first solution: He chooses the ‘classical’ distribution system. In this case, the products must be supplied by the manufacturer to logistic centres or in large trading networks that distribute them to retailers or retail chains. In network marketing, the product is instead to people who do business with their customers (buyers) through personal contact. So, the difference is that I am going to buy the product, I would like to have, not in the business but call my friend who recommended me to the product on the basis of his personal experience. Now, what is the modern system in your opinion? Advantages of network distribution: no qualifications necessary requires a minimum capital investment you can at any time all over the world to launch all free time allocation without any risk works is his own boss in the next to, as well as in the acquisition of the main no Membership dues registration network offers an above-average income with the opportunity for financial freedom marketing allows the average people to achieve an above-average income. That of course requires also perseverance and diligence in addition to the decision. As everywhere, there is never good results also in network marketing without effort. “The promise is always the following: with the same investment of time and energy network marketing can bring much better and higher results than any other business opportunities.” Christian Binder