Multi-level marketing or Networking marketing is a business model that comprises a layer of the network structure of people that sell the products of a company. The participants of this network are offered remuneration on the basis of commission. People receive commission once they perform the specified jobs like selling a product. Here, the consumers are participants. The friends and family are the participants of the consumers.

Features of Network Marketing

Some of the features of Network Marketing consist of the following:

1.Direct Sales

A network marketing organization sells its product directly and do not use a well-defined channel. The responsibility for selling the products is on the participants or non-employed individuals who receive a commission whenever they make any sale.

2. IBO or Independent Business Owners

The participants are known as IBO because they work like they are making the promotion of their individual business.

3. Selling Philosophy

The participants use the selling philosophy. The main objective is selling and recruiting as much you can for earning more commission. Here, no relationships are formed. People may use tricks to purchase a product.

4. Hierarchy System

People receive a commission on the basis of hierarchy.

5. No Advertising

Direct sales help an organization to depend very less on advertising. Word of mouth with personal contacts are more convincing than advertisements.

6. No Fixed Salaries

It is a commission based network wherein the participants receive a commission for the performance of a specific job.

7. Accountability

Each person remains accountable only to himself. If he sells more, he will earn more.

The Advantage to the Participants

  1. The consumers and the participants are the same in this network. So, they receive discounts and many other attractive offers when they join this network. In the recent few years, the popularity of the direct sales business has reached a very high level. Many people prefer to work only for themselves and want to have control over their destiny. There have been always success stories of MLM and many people are making a huge amount of money by working part-time by building a great organization. There has been also a cultural shift, which has taken place along with the broadening of social media.
  2. Many MLM businesses sell their products through parties. These parties provide an opportunity for people to work together with friends where they can purchase and know about the product and also enjoy drinks and food. From the viewpoint of a company, the sales model of MLM makes sense as it is low-risk and also non-capital intensive. You are not needed to hire a sales force to sell. You just provide them with limited training.
  3. Payment is made through commissions. The Networking Marketing/MLM business model is not new. Many of the biggest MLM businesses are around for about 30-50 years. There have been many scams and failures that have resulted in people to be wary about this model.

8. Network Marketing is Legal

It provides people with legitimate and real products they require at a fair price. Some people make plenty of money via network marketing, the financial advantage is because of dedicated efforts to build an organization, which sells real services and products. Pyramids are not legal. In a network marketing, every person is able to multiply his skills, efforts by helping others. Network marketing is a part of a new economy. It is also a preferred way of doing business all over the world.

9. Network Marketing Does Not Include Taking Advantage of Relatives and Friends

It is not a scheme to become rich quickly. Some people do make a huge amount of money quickly. Success in this marketing is dependent on some dynamic principles.


Successful people build network marketing in an organized manner. They work for a few hours and they give every hour to build a block for the growth of their business. They sponsor others and tell them the way to sell a product. By helping people, you sponsor personally to others, actually, you are duplicating yourself.

With this process, you make compound growth that helps hundreds of people to enter your business. Network Marketing is about leverage. You leverage your time and thus enhance the work effort put by you.

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Prince Saini

Author Prince Saini

Prince Saini is a motivational speaker & network marketer who focuses on building community with a purpose & empower people to achieve the next IMPOSSIBLE.

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