Definition Definition

What Is Network Marketing? Types of Network Marketing and Example

What is Network Marketing?

Network Marketing refers to the wide range of networks one can create in his/her business in order to generate sales and earn commission through the products or services. It is mostly popular among those job seekers who are looking for part-time jobs or flexible hours. 

When people start doing business and give the full potential amount of effort to grow, network marketing can be a crucial part because it assists business people to make connections with new salespeople or partners who would contribute to increasing sales, build networks with customers and result in greater lead generation.

In network marketing, it is very necessary to show potential customers the owner’s full potential and passion about the product, how it will benefit people and why buyers should take interest in the purchase. This type of networking leads to the opportunity of selling the products among close acquaintances.

Manufacturers often need to build a fruitful network through contracting and developing salespeople as well as sub-distributors, so that they can build a complete web of networks that can deliver the right message to the right people.

Types of Network Marketing

There are a few types of network marketing and they are-

  1. Multi-Level Marketing (MLM)
  2. Cellular marketing
  3. Affiliate marketing
  4. Referral marketing
  5. Home-based business franchising
  6. Consumer-direct marketing

For example, Samantha is an entrepreneur who sells a variety of cakes starting from cupcakes to full-sized party cakes. She often arranges parties in her house and invites all her neighbors, relatives and most people she knows and serves them her homemade cakes. 

This helps promote her passion for baking cakes and the guests tend to feel connected to her and buy cakes and also refer others to buy from Samantha. Through these activities, she is developing her own network which helps her to grow the business and generate a greater number of sales.

Use of the Term in Sentences 

  • The term - “Network Marketing is commonly used to indicate various types of marketing to promote and generate sales in businesses.
  • Manufacturers and large corporations use network marketing to build a big network of trusted buyers in order to become a brand. 


Category: E-Marketing
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