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Is There A Difference Between Network Marketing And MLM?


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Network marketing is a marketing variant characterized by the promotion of a product or service through other businesses or individuals. In many cases, network marketing represents a strategy included in the traditional marketing forms. It basically relies on word of mouth, but things have got a lot more complex than that these days. In very many cases, the name of multi-level marketing is used to describe this advertising model, although the two concepts do not overlap completely.

A company can use network marketing as one strategy among many others to promote products. This is the case when the marketing steps rely on the activity of various individuals in the network. Just think how well social networks serve for this purpose. Companies make huge profit every year through 'refer-a-friend' programs. Thus, a commission or a bonus is granted to a customer that generates a referral. The referral also receives an incentive for signing up and the program extends progressively.

Unlike the pyramidal systems of multi-level marketing, network marketing does not generate revenue from what the 'referrals' sell. This is actually the main difference between the concepts. There are very many companies that consider network marketing a good strategy and use it in parallel with other tactics to reach a wider range of consumers. Whichever be the case, all decisions are based on careful plans. This system very much resembles affiliate programs, which are more legitimate than pyramidal systems.

It is important to carefully look into what you get within such systems. Network marketing offers a great model for the development of medium and large companies. Corporations rely on it extensively, even if things are a bit different for small businesses. There are nevertheless cases when network marketing can apply to small businesses too. Let's say that you have a beauty parlor and you target a local market.

A customer that is satisfied with results can gain you ten other more clients. Your business will improve considerably if you offer discounts to clients for referring your business to their friends, not to mention that you'll thus save on advertising. The only thing here is to provide quality service and convince people to return because they are satisfied. An unhappy client will not return, and he/she will certainly not refer someone back to you. Learn a few things about network marketing and then see how this strategy can be implemented in your business vision and approach.
About the Author :

Randy Disert is a network marketing expert who will share with you his MLM secrets to success so that you can have success as well.
Source : http://www.articleonlinedirectory.com/
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By :  Randy Disert  Author : Randy Disert Rss Feed     Published : 2010-02-07 16:00:45   Popularity : 14 or more times read     Views : 19    

Tags : network marketing

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