Network Marketing

How To Earn Money From Network Marketing

Are you someone who is looking out for ways to climb up the ladder of success in your life? Or maybe someone curious enough to explore new income streams for oneself? If so, then today we will learn exactly how to do that without much extra effort. Well, you might have got some idea what we are about, to begin with. Yes, nothing else but learning about the basics of network marketing and how it works.

After all, who amongst us won’t like getting the additional sources of income in our respective lives? None of us, that’s what most of my friends would reply without a second thought. So, let’s begin with the basics of network marketing.

What Is Network Marketing Business

Among many other business models existing today, networks marketing is just another. Not to forget, with its own uniqueness. It is a passive income source. And doesn’t necessarily involve direct involvement of the individuals. The network marketing industry has created a maximum number of millionaires in the world.

Network marketing has got a host of other names which are used interchangeably. Other names for network marketing include multilevel marketing(MLM), consumer-direct marketing, referral marketing, or home-based business franchising.

This business model moves products directly from manufacturers to end-users. Thus, eliminating all the middlemen in any other business model. Consequently, what the company saves by eliminating middlemen, gets distributed to its representatives.

Under this business model, individuals act as independent sales representatives for a company. At times, this business is operated from the comfort of one’s home. As the name suggests, network marketing requires individuals to build a network of people. These people – acting as representatives – consume and promote the company’s products.

Network marketing is a great way to add to one’s existing earning sources. Moreover, without much extra effort. It provides an individual with great flexibility in working hours. And many other benefits of any passive income source.

The best part about network marketing is that one can start with a very low budget, say 3k-7k INR. This one factor alone makes it much more appealing than other businesses models. On the other hand, any other business model requires huge investments upfront.

Watch Out

Be careful about a few downsides of network marketing before you take your first step. If any company asks you for hefty initial purchases, take a step back. Therefore, it’s advised to do some research work at your end first.

Also, if a company rewards you more for recruiting other representatives than making sales, it might be a fake scheme.

If I would be given a chance to start all over again,

I would choose network marketing”

-Bill Gates

Frequently Used Terms In Netwok Marketing

It’s a good practice to familiarise yourself with the terms used in your area of work. Likewise, the direct marketing industry also uses some of the words you must be aware of before starting. Notably, some of those words are as listed below-

Direct sales

As has been mentioned, network marketing companies sell their products directly to end-users. Thus, no middlemen are involved to move products from manufacturers to consumers. Distributors are given the task of selling the products.

Finally, every time a distributor makes a sale, he gets a commission from the company.

Individual Business Owner(IBO)

The participants are called individual business owners as they act as independent of the company. Participants are the business owners in network marketing. Therefore, they get the reward for their efforts.


The members added by the distributors under them are referred to as downline. The distributors get a share of the commission for sales made by their downline. Thus, the downline implies the recruits done by the distributors.


Upline includes all the distributors in the hierarchy above any members, immediate sponsor. This upline gets a percentage share in all the sales brought in by the downline.


The consumers joining the multi-level marketing also act as distributors of the company. As these customers bring in more sales by adding fresh recruits, they act as distributors of the company.


The plan specifies clearly the pay mechanism for the distributors. It makes as clear as possible the percentage share of distributors in every sale they bring. Also, other benefits like travel fund, car fund, etc. are mentioned clearly.


The new members added by distributors are referred to as recruits. The distributor gets the benefit of every sale brought in by the recruits.


A sponsor is a person who gets onboard new members for the company. In other words, a person who is already working with a network marketing company.

Network Marketing Vs Traditional Marketing

To learn about the main differences between traditional and network marketing, we’ll look at their characteristics. This will help us decide what best suits our needs. So, let’s find about these business practices.

Traditiona Marketing

  • Traditiona business model requires big investments upfront.
  • It requires a physical presence of your business.
  • Also, it necessitates employees to handle your business.
  • It needs you to maintain accounting records.
  • Moreover, it demands owners presence all the time.
  • You only earn when you work. Thus, there is no passive income.
  • High financial risks.
  • Higher failure rates.
  • You cannot run it as an additional revenue source.

Network Marketing

  • Very low initial nvestment
  • No need for employees
  • You can operate your business from any place in the world.
  • Easy to expand both, nationally and internationally.
  • Benefits from the company like car fund, travel fund, etc.
  • You can run this as your part time business.
  • Flexible working hours.
  • It provides you a passive source of income.
  • You can earn without working.
  • You earn everytime your downline makes a sale.
  • Easy to start.
  • Almost zero documentation. Just sign up with the company.

Hence, from the above points, it’s clear that one can start a network marketing business much more conveniently than a traditional business.

Pyamid Scheme In Network Marketing

At times, MLM business opportunities turn out to be a scam. And these pyramid schemes are nothing but scams. You may lose your effort and money if you didn’t research MLM companies before joining them.

The pyramid scheme patrons may lure you to join their network. At times, they use attractive payment schemes and other tempting offers to get you in their network. These schemes aim to get more and more people into the network. In fact, they focus more on getting recruits instead of selling their products and services.

Oftentimes, you are asked to make purchases on regular basis irrespective of your unsold stocks. Also, you may be asked to pay certain recurring fees. These fees are charged for the training sessions or other marketing assistance. You may be asked to pay these fees to avail of perks such as travel benefits, bonuses, luxury cars, etc.

But none of these are true in a genuine MLM business. The training is provided for free to help you sell their products. And you earn rewards based on sales you bring. And you are not forced to make purchases at regular intervals.

Use the below-mentioned points as warning signals-

Promoters try to lure you using different tactics

Promoters focus more on recruiting rather than selling

You are asked you to make unnecessary purchases on regular intervals to stay active

Promoters use aggressive marketing to get you into their network

Types Of Network Marketing

It’s always helpful to learn about the categories and types. Now that we have learned about network marketing, let’s learn its types for better clarity. Network marketing is done in the following 3 ways-

Network Marketing
Types Of Network Marketing

Single-tier Network Marketing

In this type of network marketing, any individual sells the products of the company without adding more recruits.

One just needs to join the company with its single-tier marketing program. Also, you don’t bring more sellers for the company.

This method has limited scope. One misses on the benefits of getting more sellers for the company. That is, you earn only as much as the effort you make.

Two-tier Network Marketing

Two-tier network marketing, unlike single-tier network marketing, involves some recruitment.

The person gets paid to bring sales for the company or traffic to its website.

Also, the person gets a share of the commission for sales and traffic brought by an individual recruited by him/her.

Multi-lvel Marketing (MLM)

This is where the real magic of the network marketing business model lies. Here, your earning gets compounded in no time.

You can add as many subordinates as you can. And you get a share of their commission. The more subordinates you add, the more income you generate.

When a person joins an MLM program, they act as the distributors for the company. Thus, the distributors make money every time they sell products to other consumers. Also, the distributor gets commission for sales brought by their recruits, also known as their downline.

Online Network Marketing

The underlying principle of network marketing is connecting more and more people. Since in network marketing, more people implies more money. So, what could be the best place to connect people easily? Yes, you got me. It’s the INTERNET. There are well above a billion people using the internet. So no need to look anywhere to build your network. You are no close to find yourself a better option than the online platform.

What are the benefits of building your network online? Let’s find out.

  • Your business is up 24/7.
  • Minimal maintenance cost.
  • Easy to expand to business globally
  • Work in comfortable clothes, from the comfort of your couch. And many other benefits.

All you need to establish your business online is a website. Register a domain name, get a hosting service and you are ready to go. You may create this website on your own with very little effort. If not, you can easily hire a freelancer from different freelancing sites like to build your website. But remember to include the following things in your website-

  1. Information regarding your company, its products and vision statements.
  2. A smooth order placing mechanism
  3. Training and other growth opportunities by the company
  4. Benefits for your recruits to join the company
  5. A lead magnet such as ‘Free e-books on affiliate marketing’ to get contact details of your site visitors
  6. An email service like to easily manage your email contacts and leads

India is expected to clock a turover of around 650billion INR from this industry alone by the year 2025.

How To Earn Money From Network Marketing

As is the case with any other business, so it is with the MLM business model. You are required to conduct the business with all the hard work, dedication, patience, and persistence. And once you have established yourself in this business, build a highly motivated downline over a period of 2-3 years, you can have a great passive source of income. Now, you won’t require putting in hard work. Rather, you’ll spend more time managing and training your downline.

To achieve greater heights with your MLM business, consider the following points-

Learn about the company. Find out the products you are most passionate about.

Invest your time. Learn about was to grow and strengthen your business.

Build a good network of downline. And your necessary training to your downline.

Work along your downline. Solve their queries, boost their morale and motivate them.

Always be a team player. Praise more, criticise less.

Be a friend to your downline. And don’t boss your downline.

Create an environment of mutual help and growth.

How To Start Your Network Marketing Business

The network marketing business model is no shortcut to your career success. Although, it does provide you simplest way to fulfill your dreams. Thus, it’s imperative to know how to start your business in this industry. So, consider asking the following questions to yourself before you start-

How old is the company you wish to start your MLM business with?

What products or services does the company deals in?

Do these products provide value to its consumers?

Do you personally like the product which the company deals in?

How the company has performed in the recent past?

What is the reputation of the company?

Does the company provides necessary guidance and training?

Asking these questions will certainly give you a better idea. Also, once you find answers to these questions, you’ll equip yourself with all the necessary data to succeed.

Advantage Of Direct Marketing

  1. Very Little Risk- The risk asociated with starting your network marketing business is minimal. You can start with a very low budget and can have great career success. You just need to put in some effort to find out the right company for yourself. If you are persistent, you are sure to succeed with this business model.
  2. Demand For Quality Products- The demand for quality products is on all time high at present. This is due to peoples incresed awareness in terms of their health and well being. You just need to find the product you are passionate about and you think has a good demand.
  3. Passive Source Of Income- One of the biggest perks of network marketing is that it provides a passive income source. Once you have set your network marketing business, money keeps flowing in. You don’t always need to be making effort to earn money. Once you have build a good network of downlines, you can benefit from their effort.
  4. Income potential- the income potential in network marketing is, like any other business model, is unlimited. There’s no upper limit to your income. You earn as much as your effort. The more effort you make, the more profit you make. Also, you scale very quickly with this business model. Your income starts compounding once your downline starts working and generating sales.
  5. Overall Personality Development- This industry greatly helps with your overall personality development. Co-ordinating with your upline and managing your downline will greatly add to your management skillset. This further helps you improve your business.
  6. Freedom- We can’t ignore the freedom factor linked with network marketing business. You’ll get much more freedom here than any other business model. Here, you’ll get to choose the product you sell, the people you work with, your working hours, etc.

Disdavantages Of Direct Marketing

  1. Bad Image- Network marketing industry does not apeal to most of the people. They tend to find it a low-class business. This is mainly due to lack of information among people about this industry. Thus, people find it unattractive to reach out others and build their network. But people who are consistent with their work in this industry are doing as good as any other business owners.
  2. Network Marketing scams- The scams done by a few network marketing industries in the past haunts this industry even today. People still find it hard to believe in the working method of this industry. But today, you can find the authenticity of any company with just a few clicks.
  3. Poor Mentors- Sometimes your mentors may abandon you. This will happen when you outperform your upline. But you need not worry much. By the time you have reached this far, you won’t need much guidance from your upline. You will be able to manage on oyur own. Moreover, you will start mentoring your own downline by the time you reach this far.

Is Network Marketing A Good Career Option

Basically, network marketing is a form of business in which we don’t invest money but time. No doubt, the network marketing industry will transform the business world’s landscape in the 21st century. This industry wholly qualifies to be considered as a full-time career option. In the last few years, this industry has evolved as a promising career option. In a country like India, this industry provides benefits to both the consumers and the company. Therefore, it’s a win-win for all the parties involved in this business model.

This business model doesn’t require any formal educational qualifications at all. Also, this industry has the potential to bridge the gap between different sections of society. Here, people from different backgrounds get the same opportunities. All you need to know is about the goods and services the company deals in. In fact, you can reach every height you can dream of in your career.

The recent ups and downs make this industry even more attractive. This industry runs on the concept of “Customer is the king”. Hence, this concept alone ensures high success rates in this industry.

To promote this industry, the Indian government allowed 100% FDI in the nation. This move from the government also approves the prospect of the network marketing industry. Therefore, it’s just the perfect time to jump on the ship of network marketing. And it will surely take you to places.

Tips For Your Success With Network Marketing

Network Marketing
Network Marketing Tips

Indeed some ways would help you in your network marketing business. Not only they would help you with this business, but also with your other business activities. Regarding this, consider the following points-

Do Some Research Work

To save yourself from pyramid schemes and other scams, put in some effort in research work. This way you will save your time and energy. Also, this research effort would equip anyone with the right mindset and thought process, Don’t believe blindly every scheme you come across about network marketing.

Learn about the industry in-depth. Likewise, learn about the system on which this industry operates. Research about the company you are willing to work as a distributor with.

Sell Products Which You Personally Like

Don’t fall for the hype. Know in detail about the company and its products before involving yourself in any business. People tend to fall for the high commission and later feel trapped. To avoid this, be sure you know the products the company deals in.

You must take pride in what you do. Also, know the vision and mission statement of our company. Don’t associate yourself with any company whose products and services you personally don’t like. Moreover, never fall for high commissions. Go with what you like and you will have greater success in your career.

Never Use Misleading Tactics

No one ever achieved peace with wrong tactics. Also, your success is good for nothing if it can’t bring you peace of mind. So don’t get involved in the wrong tactics. And don’t ever trick people to grow your business. As this will only bring you loss in the long run.

There are other ways to win people and sell your products. Sell solutions to people. And you will get ready sales. With good practices, you will get word-of-mouth publicity. Consequently, this will help your business in the long run.

Don’t Bother Your Realtives

Well, no doubt it’s good to invite your friends and family to your business, but never bothers them. Also, Don’t force your relatives and friends to buy from you. Instead, sell your products and services who genuinely need them.

Owing to this, you will get customers easily without having to ask peoples’s favor. If you really like your products, your enthusiasm alone will get you, users. Your friends and family too will join you after they see your success.

Identify Your Target Customers

You are going nowhere if you don’t know your target customer. You have to identify your target customers to get those sales easily.

If you make efforts to attract everyone and anyone, you will only end up losing more energy. Make focused efforts. So, know your target customers as this will save you much time and effort.

Follow Up

Follow-up is a great way to increase your sales. As in many cases, it can convert a No to Yes. And remember, in sales, a ‘No’ doesn’t imply ‘Never’.

Get contact details of your potential customers and ask them if they would like to hear from you later. You can easily do follow-ups using email marketing platforms like

Get Training

Training is the best thing to invest your time in before you starting anything new. And it is the same in the case of network marketing business.

Usually, all the network marketing companies provide training to their fresh recruits. And this training is mostly provided using online platforms. Also, training provides you with the ultimate guide to start your business. Moreover, such training gives you detailed information about the company, its products and practices, and its pay plans. So, any beginner should undergo proper training to avoid any confusion in the future.

Do It With Full Dedication

In a general scenario, people don’t take direct selling business seriously. And this is the main reason behind most of the failures within this business. Also, people become too comfortable with the system. Therefore, they think things would out automatically for them. However, this is not true.

Therefore, whatever be your occupation, it requires your full dedication to get results. One has to invest time in this business, if not money. Especially in the first 2-3 years, anyone should be willing to dedicate 3-5 hours to this business. Also, one has to learn the basics of this business model to achieve success with it. Always remember-

Network Marketing
Network Marketing

Direct Marketing Companies

There are a host of companies which has direct marketing programs. These companies offer products and services in different categories. And these categories may differ from health products to cosmetics. So, let’s learn about some of the famous network marketing companies below.


Amway India is India’s leading network marketing company. It has a vast network of around 150 workstations in the country. Amway has the potential to shape the future of India in the network marketing industry. Amway India aims to launch another $100million production facility in Tamil Nadu. And it wishes to establish new quality standards for the Indian market.

Amway India has established itself in the “Top 10 Network Marketing Companies Globally” list. It’s the largest direct marketing company in India.

Amway India deals in over 140 product categories in the Indian market.


Herbalife is an international network marketing company. The company deals in health-related products since the 1980s. Herbalife’s health and weight control products are offered through over 2million distributors in around 100 countries of the world.

Herbalife sells its products only through its associates and not in physical stores. In fact, any of its associates can avail of a minimum of 25% discount on the retail price of its products. And can easily resell them to make a good profit.

Herbalife deals in products ranging from a protein shake, tea, sports beverages to personal care items.


Avon Products Inc. manufactures and deals in a range of quality cosmetic and beauty products. It deals under the categories of home, fashion, and beauty.

The company has set itself in geographical locations, namely-

  1. Latin America
  2. North america
  3. Central and eastern Europe
  4. Western Europe, and
  5. Middle east and Africa, and
  6. Asia Pacific

Avon is the second largest direct marketing company globally, behind Amway. Amway clocked a whopping $4.7 billion revenue in the year 2019.


Vestige Marketing Pvt. Ltd. is an Indian network marketing company. It was launched in the year 2004. Also, it’s a leading network marketing company in India. And it deals in the best quality health and personal care products. Moreover, Vestige is growing at a rapid pace in the Indian market.

With its mission statement of “Wealth Through Wellness”, Vestige aims to create wealth for all. And it aims to provide equal opportunities to all irrespective of their education, caste, and color.

Vestige Marketing Pvt. Ltd. clocked whooping sales of over $300million in the year 2019.

Forever Living

Forever Living – Aloe Vera company is a multi-billion dollar network marketing company. It deals in health and beauty products and operates globally.

Forever Living has its own plantations, research and development facilities, and its own distribution channels. And it aims to add quality to people’s lives through its products.

Let’s Summarise

By now, we can say we have a much clear knowledge about network marketing than before. And undoubtedly, this industry provides a great opportunity to anyone who wishes to have their own business. This business model has minimal entry restrictions. Moreover, one can generate a reliable long-term side income source with a network marketing business model. Also, this source of income is passive. This implies one doesn’t always need to be present to run the business. Thus, enabling anyone to do more than one business at a time.

Don’t forget to share this information with your loved ones.

Wish you a highly successful career!

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