Does networking marketing involve selling? continue…

March 22, 2008

The advantages and disadvantages of network marketing over conventional selling

Direct selling, network marketing, person-to-person, door-to-door, party-plan selling and other variants have certain advantages and disadvantages over conventional selling:

Advantages

  • The customer is seen in the comfort of her home. No effort is required to get to a shop.
  • The goods are often delivered directly by the distributor.
  • Old and frail people who cannot get about are easily served.
  • There is a considerable degree of personal attention.
  • Direct selling is often made to friends, so it is a warm and enriching experience, not a sales experience.

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Does networking marketing involve selling?

March 22, 2008

Many network marketing companies steer clear of the word ‘selling‘. The reason? Some 95 per cent of the population actually dislike selling. For this reason you will often read in the classified section of the newspaper an advertisement which reads:

Representatives of these companies invite prospects to ’share opportunities’. They couch their presentation in a way which suggests the business opportunity they are offering is simply that of sharing wealth. Let’s get one thing straight: network marketing involves selling.

The fact is, whichever way you look at it, a network marketing company only succeeds if its products or services are sold regularly month after month; in other words, through repeat purchases. Read the rest of this entry »


Network Marketing and the Law

March 10, 2008

Network marketing is a completely legitimate business. It has nothing to do with ‘pyramid selling‘ or chain-letter-type scams which have made newspaper headlines. Indeed, the worst excesses of pyramid operations have been largely stopped through legislation and consumer education.

For example, in the United Kingdom, legislation was passed in 1973 which detailed:

  • what could be said in advertisements
  • which promises could be made
  • which information could be included in documents issued by promoters
  • what the rights of distributors were
  • undesirable practices such as charging for training.
  • that network marketing companies were also required to buy back certain stock from their distributors on termination of any contract.

These regulations have been extremely effective in ridding the system of abuse. Read the rest of this entry »