T
What is network marketing?
business model where products or services are sold through a network of independent people instead of traditional shops.
The main focus is on recruiting downline and selling......
Earn more commission.
What is another name for network marketing?
Multi-level marketing (MLM).
How do distributors earn money in MLM?
They earn from their own sales and from the sales of their downline recruits.
Why is product quality important in MLM?
High-quality products make it easier to sell and help distributors stay motivated and successful.
what is pyramid schemes ?
Illegal business model where people earn money mainly by recruiting others, not by selling real products or services.
Successful MLM Companies,,,
Avon, Tupperware , Amway ,Mary Kay and Herbalife
How do distributors earn income in network marketing?
Distributors earn income from their own sales and from the sales made by their recruited members (downline).
What is direct selling?
Direct selling is selling products directly to consumers, usually through face-to-face interaction.
Why should there be no registration fee in MLM?
Because charging a fee can turn MLM into a pyramid scheme, where profit comes from recruitment instead of sales.
The difference between MLM and Pyramid schemes?
MLM companies make money by selling products or services while pyramid schemes make money by selling right of recruiting.
What is a “downline” in network marketing?
A downline is a group of distributors recruited by an individual, whose sales also generate income for that person.
Name one type of compensation plan.
One type is the Unilevel Plan (others include Binary and Matrix plans).
Why do many people fail in MLM?
Because of low commitment, unrealistic expectations, and high competition, many distributors quit without earning much income.
What are two key requirements for a successful MLM business model?
Clear commission structure and strong communication between upline and downline.
What role does social media play in network marketing?
Social media helps distributors reach a wider audience, promote products, share content, and recruit new members.
Why is personal branding important in network marketing?
Personal branding helps attract customers and recruits, builds trust, and increases credibility.
What is the main ethical concern related to network marketing?
The main concern is its similarity to pyramid schemes, where income depends more on recruitment than product sales.
What is one major challenge in network marketing?
One major challenge is market saturation, where too many distributors compete for limited customers and recruits.
How does Avon’s business model generate income while distinguishing itself from a pyramid scheme?
Avon generates income through direct selling, online sales, and recruitment-based commissions, but unlike a pyramid scheme, earnings depend mainly on actual product sales rather than position in a hierarchy.