Most people don’t have the slightest idea what network marketing is, and that they have all kinds of perceptions and prejudice about it. However, this text will seek to clarify what network marketing really is.
First and foremost, you would like to know how the chain of producing, supply and demand goes. When the manufacturer makes a commodity, the transporters are wont to distribute the products. The transporters could also be the manufacturer’s or could also be the distributors. When these goods get to the distributor, they’re stored, and wholesalers come for them in order that they cam sell the products to the retailers, who successively sell the products to the buyer. aside from these, other middlemen are involved. the corporate that creates the commodity has got to advertise for it, which is why your programs are crammed with commercial breaks. Also, companies use sales men to market the commodity to wholesalers and retailers.
Needless to mention, of these middlemen need to get their portion of the profits because none of them does free work. the corporate that manufactures has got to buy space, for its workers and its salesmen. It also has got to maintain the industry and in any case expenses are met (including the tea at 10am), the manufacturer wants to bank an enormous profit to enable expansion of the industry.
The TV and radio stations need to be purchased every second the advertisement is being aired, and therefore the distributors need to make profit out of an equivalent commodity after they need purchased space and therefore the risks of storage, among other over heads. The chain goes on and on, through the wholesaler and therefore the retailer (including the seller or hawker) until it gets to you, the buyer.
Therefore, you discover that an item whose value at the manufacturer’s place is four dollars gets to you when it’s thirty or forty dollars! this suggests that it’s you who pays every middle man involved before the commodity gets to you.
However, network marketing cuts short this chain and it directly links the manufacturer to the buyer. Therefore, you get a part of the cash that the middlemen would have gotten and your up lines get some. This goes up all the thanks to the manufacturer. No wonder you furthermore may get some of what your down lines sell. Network marketing generally entails making a network during which promotion of an honest or service is completed and people also are recruited into the network to form it wider.