What Is Network Marketing: Definition, Types, & Examples

Network marketing

Emerging marketing trends have altered the way business is done. These new ways of marketing assist companies in attracting a huge number of clients. They even help companies cut costs associated with traditional marketing methods. Network marketing is one such revolutionary trend. This blog will focus on network marketing company types, examples, and the best companies.

What Is Network Marketing?

Network marketing is a business concept that relies on one-on-one sales by independent salespeople, many of whom work from home. A network marketing business may necessitate the formation of a network of business partners or salespeople to aid with lead generation and sales closing.

There are many legitimate network marketing companies, however, others have been labeled as pyramid schemes. The latter may focus less on consumer sales and more on recruiting salespeople who may be asked to pay for pricey beginning kits upfront.

How Network Marketing Works

Multilevel marketing (MLM), cellular marketing, affiliate marketing, consumer-direct marketing, referral marketing, and home-based company franchising are all terms for network marketing.

Companies that use the network marketing model frequently construct levels of salespeople, which incentivize salespeople to recruit their networks of salespeople. The producers of a new tier (or “upline”) earn commission on their sales as well as the sales of others in the tier they created (the “downline”). With time, a new tier can develop, which gives additional commission to both the top and middle tiers.

In-Network Marketing

While network marketing and multi-level marketing programs have been accused of being pyramid schemes, some key distinctions exist. While individuals who can attract more members into the program frequently enjoy higher residual commissions, network marketing is a legitimate and legal business structure that sells real products and services to customers.

Network Marketing’s Benefits and Drawbacks

There is some stigma associated with network marketing, particularly those with numerous tiers that can be classified as pyramid schemes—that is, salespeople in the top tier can make enormous amounts of money on commissions from the layers below them. People in the lower tiers will earn significantly less. The company generates revenue by offering costly beginning kits to new members.

The allure of network marketing is that a person with a lot of energy and good sales abilities may build a profitable business with a small investment.

According to the Federal Trade Commission (FTC), a company that assures pay is based on actual sales to real consumers is more trustworthy than a multi-tier scheme in which people earn money depending on the number of distributors they recruit.

Types of Network Marketing

There are many types of network marketing, including single-tier, two-tier, and multi-level.

Single-Tier Network Marketing

To offer a company’s products or services, you join an affiliate program via single-tier network marketing. You do not need to recruit other distributors, and your only source of income is direct sales. Avon, a well-known cosmetics company, employs single-tier networking marketing.

Some internet affiliate schemes pay you for driving traffic to the affiliate’s website. Affiliate schemes such as pay-per-click (PPC) and pay-per-lead (PPL) are other instances of single-tier networking.

Two-Tier Network Marketing

Unlike single-tier network marketing, two-tier network marketing requires some recruiting, but your payment is not completely based on it. You get compensated for direct sales (or traffic sent to a website) as well as direct sales or referred traffic generated by affiliates or distributors you recruit to work for you. Ken Envoy’s Site Sell is an example of a two-tier scheme.

Multi-Level Marketing (MLM)

Multi-Level Marketing (MLM) is a two or more-tier distribution-based marketing network. Marketing-driven networks and name-driven network marketing are two further sorts of network marketing methods. Some MLM programs pay out five or more tiers deep, thus there may be incentives for recruiting. MLM companies include LuLaRoe, Magnetic Sponsoring, and Amway.

Companies of Network Marketing

Let’s take a look at the top five global network marketing (MLM) companies.

Tupperware

It is one of the world’s most well-known multi-level marketing enterprises. The brand, which was developed in the United States in 1938, has become synonymous with its whole product category – plastic food storage containers – to an extent only rivaled by companies using traditional distribution channels such as Scotch tape or Hoover vacuum cleaners.

Avon

It is a cosmetics company with millions of sales agents and yearly revenue of $3.63 billion in 2020. It is one of the largest multi-level marketing companies in the globe. Natura & Co, a cosmetics company that also owns The Body Shop, purchased Avon Products, Inc. in early 2020.

Herbalife

It is a multi-level marketing company that sells nutritional supplements. It was created in California in 1980 and now has millions of independent distributors worldwide.

Amway

Amway is the world’s largest network marketing company, with an estimated $8.5 billion in revenue in 2020. Since its inception in 1959 in Michigan, the company has grown to over 3 million representatives selling health; beauty, and home care goods in over 100 countries.

Best Company Network Marketing

For the previous decade, these major firms in the worldwide network marketing business have maintained their dominant positions. These network marketing (MLM) companies are primarily concerned with expanding their customer base and enabling independent entrepreneurs to expand their enterprises via the usage of their networks. Read on for our ranking of the 15 best network marketing companies enterprises (in no particular order).

Top 15 Best New Network Marketing MLM Companies

#1. Vasayo

Vasayo is unquestionably one of the best new network marketing MLM companies to investigate for aspiring network marketers. If you’ve ever taken vitamin and been skeptical of its effectiveness; Vasayo is a network marketing company you should look into. Vasayo says, using modern delivery technology, that carrier agents and chemicals in popular nutritional supplements inhibit the body from truly absorbing the micronutrients that you’re seeking to take in.

#2. Total Life Changes 

Total Life Changes is another top MLM company that specializes in health and wellbeing (TLC). TLC products are divided into three categories: nutritional, skin care, and lso cafe, and were initially founded by MLM expert Jack Fellon. Their best-seller is a “revolutionary” herbal detox tea. Multi-level marketing products like Iaso coffee supercharged by mushrooms and charcoal-activated toothpaste are approachable and have positive Amazon reviews. TLC network marketing has been rising for years and will most likely continue to grow due to the exploding wellness market.

#3. Senegence 

SeneGence, a multi-level marketing company, is best known for its LipSense lipstick; which rode the Kylie Jenner wave of the voluminous lip beauty trend. This top MLM company was founded two decades ago by Joni Rogers-Kante, a “single mother with a business plan”. It offers a significant discount for sellers as well as a 50% commission on purchases. The disadvantage of this direct selling company is that new network marketers must pay a significant amount of money to start—after the $55 buy-in, you’ll need to purchase kits so that prospective clients can taste your items.

#4. Dagcoin

Cryptocurrency is quickly expanding right now, and crypto MLM is one of the most popular network marketing areas. Dagcoin MLM bills itself as “the Universe’s Most Usable Cryptocurrency.” Dagcoin’s claim to fame is that it is faster than Bitcoin and easier to use for the average person. The startup currency, founded by notable Estonia-based European investor Nils Grossberg, is only a few years old and is built on the premise that the more you invest, the more Dagcoins you receive. While Dagcoin does not offer products to clients, its objective is to make cryptocurrency available to everyone by 2022; which is a worthy cause worth investigating for any modern network marketer.

#5. Modere

Originally formed as a direct sales company decades ago but rebranded as the startup brand Modere only a few years ago, this MLM company is all about eco-friendly items for health and home. Modere refers to its MLM reps as “social marketers,” and the bonus structure is generous, but you do get paid for selling things and recruiting other social marketers and business bloggers to join. The branding is quite good, and the product, particularly the 3-pillar weight loss regimen, has a lot of buzzes.

#6. doTterra

doTerra, perhaps the most well-known MLM company on this list, has benefited from the recent surge in natural healthcare. doTerra, founded over a decade ago by David Sterling and some of his peers, all veterans in the holistic health sector; grossed $5 million in the first five years and has only grown since then. This top MLM company distributes essential oils as well as health goods infused with essential oils, such as deodorant and shampoo. If you become a network marketer salesperson for them, you will receive product discounts and a reasonable commission.

#7. Young Living

Young Living is another essential oil MLM company that promises to empower individuals to use essential oils to live better, healthier lives. Gary Young, the inventor of network marketing, began using essential oils in his organic herb garden decades ago. Today, this network marketing opportunity is organized such that Young Living “Business Builders” can earn a commission on the product they sell; with network marketer possibilities for “experiences” and unique recognition along the way.

#8. Valentius

Valentus was formed 5 years ago by Dave Jordan and is known for its super coffee that promises weight loss, named SLIMRoast. The MLM structure is quite standard: 25% commission for new network marketers (paid weekly) and bonuses as you climb up the sales ranks. These network marketing items are aimed at customers who desire to be superhuman; Valentus stands for “prevail,” and everything they sell promises a stronger body.

#9. New U Life

New U Life is a top new MLM masterminds startup company that sells anti-aging goods that have one crucial ingredient: homeopathic human growth hormone. Consultants for New U Life MLM should target customers aged 35 and up because the SOMADERM gel promises to restore your growth hormone levels to what they were in your twenties.

#10. My Daily Choice & Hempworx CBD Oil MLM

CBD oil, commonly known as cannabidiol, is one multi-level marketing trend that is certain to explode even further in 2022 and beyond. Josh Zwagil, the founder of My Daily Choice, who got into the MLM business several years ago, is aware of this reality. This top MLM company sells two product lines: My Daily Choice network marketing, which sells sprays to enhance general well-being, and Hempworx, which sells CDB-infused oils for humans, and CBD oil treats for dogs.

#11. Farmasi

Farmasi is a quickly emerging new MLM in the United States this year, and it is surely a top contender in the network marketing field. This top network marketing company prides itself on offering clients healthy products for every member of their family; manufactured following both European and US Standards, they ban over 1,300 toxins from their products, are cruelty-free, and are dermatologically tested.

#12. David Allen Capital / Bank Breezy

MLM Loans and merchant cash advances are also rapidly expanding MLM sectors following the economic slowdown caused by lockdowns. As a result, visit David Allen Capital (DAC) and Bank Breezy to learn about a new network marketing and affiliate marketing big-ticket loan/merchant cash advance opportunity with six-figure earning potential! If they meet the basic earning requirements; you can help them get up to $25,000 in same-day operating capital through merchant cash advances. You may also recruit other DAC ISO loan agents in your MLM downline to receive a percentage of each loan funded.

#13. Sisel

After discovering so many harsh chemicals in our everyday products, Tom Mower Sr. and his son decided to find the cleanest options in the health and wellness business. They developed Sisel, hired the best scientists, and constructed a 300,000-square-foot manufacturing facility in Utah. This top MLM company roasts its coffee in-house using infrared equipment!

#14. Organo Gold

Organo Gold, founded by Bernardo Chua, uses Ganoderma Lucidum, a Reishi fungus believed to decrease cholesterol, improve the immune system; prevent certain diseases, fight fatigue, control blood sugar, and be a powerful antioxidant. This is a top MLM opportunity for coffee and wellness enthusiasts.

#15. OLSP (One Lead System Pixel)

OLSP is a leading new affiliate marketing company that allows you to attract new affiliate marketers in the same way that an MLM company would. You can make money while learning, building your email marketing list; driving traffic to your social media pages, and selling affiliate products while recruiting others to your team. With OLSP, you can do free or paid alternatives, and you don’t have to buy any monthly products like most typical MLMs.

Conclusion

To summarize, Network Marketing is a unique marketing method. It is unique, according to those engaged, and the market is expanding at an incredible rate. We may see some dramatic expansions in the network marketing field shortly. We can see it grow happily until then.

We’ve covered practically every aspect of network marketing, including what it is, the many forms, and the best companies.

As you use your network to offer a product or service; keep in mind that they are your friends and family before they are your customers. To be an effective and successful network marketer, you must first build a wonderful relationship before selling a product.

Network Marketing FAQs

What does a network marketer do?

Network marketing is a business concept that relies on one-on-one sales by independent salespeople, many of whom work from home. A network marketing business may necessitate the formation of a network of business partners or salespeople to aid with lead generation and sales closing.

How do I start network marketing?

  • Examine the market.
  • Determine your financial capability.
  • Determine your target market.
  • Look for a network marketing company.
  • Invest with caution.
  • Obtain your credentials.
  • Recognize opportunities.
  • Contact other marketers.

Is network marketing a good business?

For serious people, network marketing is a serious business. It’s a tried-and-true system in which the corporate team’s design, creation, and expense become a road map for your success. Simply follow the straightforward, tried-and-true system that reputable companies provide.

Can you get rich in network marketing?

Is it possible to make money in MLM? The short answer is yes, but only a small fraction of representatives achieve the huge earnings promised in MLM promotional materials and at meetings. Some people make no money at all, while others actually lose money.

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