Network Marketing, also referred to as Multi-level Marketing (MLM) or Pyramid Selling is a product or service selling strategy, through whom various companies reaches their customers directly. This marketing strategy works on a pyramid-shaped commission system and those who work as a salesperson for the MLM or Network Marketing companies are referred to as “Distributors”. The Distributors helps companies reach the doorstep of their customers.
As above mentioned, MLM or Network Marketing is a pyramid-shaped commission system. Let us discuss it in brief. The Distributors are not paid as like a fix-salaried salesperson. Their wage depends on their work. The distributor is compensated by a certain percentage of his or his “downline” teams sales.
Now you may be thinking, what’s “Downline” means? Actually, the MLM strategy encourages existing distributors to recruit new distributors to make a pyramid-shaped commission system. Each sale distributor’s downline makes, a fixed percentage of it is given to the Distributor.
The industry stats shows that Direct Selling is a booming business. As per FY2020 reports, the direct selling industry made $179.3 billion in retail sales. Total global direct sales grew 2.3% year-over-year and 47 out of the 70 global markets reported positive retail sales growth.
The sector also has several giants like any another sector. Amway (Worth – US$ 8.8 Billion (as of 2018)), Market America (Worth – US$ 7.3 Billion (as of 2018)), Avon (Worth – US$ 5.5 Billion (as of 2018)), Herbalife (Worth – US$ 4.9 Billion (as of 2018)) and many others.
As stats shows it’s an emerging and effective sector, so nowadays top Businessmen, Entrepreneurs, Politicians are expressing their views about MLM. American business magnate Bill Gates, Berkshire Hathaway CEO Warren Buffett, Former US President Donald Trump & Bill Clinton, Former Indian President APJ Abdul Kalam, Rich Global LLC Founder Robert Kiyosaki, and Indian Prime Minister Narendra Modi are some of them.
Bill Gates about Network Marketing
Microsoft Founder and currently 4th richest person the plant, Bill Gates says – “If I would be given a chance to start all over again, I would choose Network Marketing”. His phrase shows how determined he Is, about Network Marketing.
Bill Gates also says that MLM is a great opportunity for those with less financial and intellectual resources. He also believes that network marketing is perfect for those who can follow the system diligently.
Warren Buffett about Network Marketing
“A billionaire of the world’s biggest investor, Now he invest in Network Marketing” – Warren Buffett, American business magnate, investor, and philanthropist.
You will be surprised to know that, Warrenn Buffet owns several Network Marketing companies. Kitchen Products selling Pampered Chef, Government employee insurance company GEICO, and Battery and Power system product and selling company Duracell are some of them.
APJ Abdul Kalam about Network Marketing
“Network Marketing is the fastest growing business in 21st century which must be joined by every young man and woman globally, otherwise you can never get the best of your youth age” – APJ Abdul Kalam Azad, Former Indian President and Scientist.
Robert Kiyosaki about Network Marketing
“The richest people in the world look for and build networks, everyone else looks for work.” says Robert Kiyosaki, American businessman and author.
Donald Trump about Network Marketing
“If I were starting over today, I would make millions in the Network Marketing Industry” – Donald Trump, American politician, media personality, and businessman who served as the 45th president of the United States from 2017 to 2021.
Narendra Modi about Network Marketing
“Unemployment india’s biggest concern, direct selling at rescue” – Narendra Modi, Indian Prime Minister.
Bill Clinton about Network Marketing
“Network Marketing is all about marketing through the people, for the people and by the people” – Bill Clinton, 42nd US President.