Multi-level marketing simply refers to a business model where people get the opportunity to generate wealth from becoming consumers of a company’s products or services, sharing their experience and testimonies while consuming the products or service and recommending to friends and family.
Take for instance, Bob is a consumer of Longrich products, he shares his testimonies about how Longrich toothpaste solved his toothache to Eddie who also becomes a consumer of the products. Bob in turn earns from Longrich for Eddie becoming a consumer of Longrich products. Eddie in turn recommends the products to Jill, Rosie and others from his experience of the products and he also earns as well as Bob also earning from Eddie’s recommendations (successlines). The network of consumers keeps growing in that manner and everyone in the network keeps earning in the same manner. This is what we simply mean by network marketing.
Have you ever used a product, recommend it to a friend and get a monetary “thank you” from the company that produced the product? Has the person you recommended the product to also used this product and get monetary benefits or even a form of a gift, a free product, a voucher or anything like that from also recommending the product to another? The answer as I can guess you will give is obviously, No.
Network Marketing Companies give this opportunity for all consumers of their quality products to earn an income just by recommending to others and those others also recommending to others and on and on (as the saying goes, tell a friend to tell a friend to tell another friend). Usually because products or services rendered by network marketing companies are products of necessity, they are hence likely to be on regular demand, thus you never run out of the opportunity to recommend. Take the Longrich toothpaste example above; Kofi bought the toothpaste from Longrich and recommends it to Kuku who comes to buy. Kofi gets paid by Longrich for recommending to Kuku. For every recommendatory purchase made, the one who recommended and his/her uplines gets paid, and that is the medium network marketing uses to encourage its partners and consumers to use the products. That is how wealth is generated from the MLM model. Let’s look at this also, Kofi could have been an employee, and hence has a busy schedule, however he is able to recommend on the go and get paid because he needs no specific time and space to recommend. This portrays that network marketing can be performed anytime, any place and at any circumstance.
Network marketing companies reward their consuming partners with incentives as their network of referred consumers(direct/indirect) grows. These incentives include: all-expense paid vacations abroad, car funds, scholarships, electronic gadgets, house funds, and many more. Network marketing companies also allow their consumers to transfer their positions in the organization to their generations which does not usually occur in the corporate world.
Some network marketing companies go to the extent of giving opportunities to investors to acquire franchise to either open branches locally, regional or nationwide. These investors in turn get to enjoy marginal profits from the markets in which they acquired the license without directly getting involved in the referral or recommendation business.
Most network marketing companies also give the opportunity to sales men or women to retail or wholesale their products in order to build their network business. Below are some beneficiaries of wealth creators in the world of network marketing:
- Titilope Ejimagwa, Nigeria
- Seun Oshofisan, Nigeria
- Vivian Mokome, South Africa
- Nick Owusu, Ghana
- Solomon Ababio Agyemang, Ghana
- Kwabena Yeboah of Edwom.com, Ghana.
In conclusion, network marketing has come to stay, and everyone is encouraged to embrace it, if not for themselves, but for the benefit of all mass unemployed citizens, as a retirement plan, as an alternative to an employment income, and for balancing of individual’s investment portfolios.
(Network Marketing Professional, Chartered Accountant)