A Close Look At Network Marketing By Akhil Shahani At Isnare.com Ezine Articles

Network marketing or direct selling companies are part of a global, thriving industry employing more than 43 million people and generating sales of over $ 75 billion. Network marketing owes its success to the following:

• Promoters of a product are necessarily users. Therefore, their word carries a higher degree of credibility, than in the case of conventional marketers, who might lack the conviction that comes only from personal experience.

• The concept of direct selling eliminates the need for a multi-layered distribution network and costly advertising. This is turn, lowers the price of the product to end users.

• Consumers benefit from the ease of access. They no longer have to spend time and energy driving to crowded shopping areas.

Paul Zane Pilsner a renowned economist and author of New York Times Best sellers such as 'Unlimited Wealth' and 'The Next Trillion Dollar', goes a step further. He describes network marketing as a sort of “intellectual distribution” which helps educate consumers about products and services they didn't know existed!

Besides offering value to the consumer, direct selling provides an opportunity to individuals with a need for additional income, or the desire to build a business of their own. In times of high unemployment, a career in direct selling might actually offer some security.

While direct selling is most often pursued as a part time job, it has blossomed into a fulfilling career for those who achieve success.

Buyer beware!

However, network marketing has been the subject of much heated debate in recent years, owing to the actions of certain unscrupulous companies. There have been instances of scams in which companies form pyramid schemes that lure unwary people into their distribution network. Such schemes ride on the number of people that get recruited as distributors by existing selling agents. Quite often, the products are sub-standard, the support from the company is minimal and there is no money to be made.

The World Federation of Direct Sales Associations (WFDSA), which is the regulatory body for network marketing companies, specifies a code of ethical conduct for all its members.

The WFDSA also has very detailed guidelines for people who wish to join a direct selling company, issued with the aim of protecting their interests. They recommend that the due diligence process must cover the following:

• Verification of company antecedents

• Asking how long the company has been in business

• Understanding how much investment is required, and what stock levels are to be maintained

• Getting a clear perspective on income generation prospects

• Ensuring that the products comply with local regulations, and asking to see some testimonials of other actual users

For those who’ve learned by bitter experience, legal redress is available, provided the company in question is a WFDSA member. That being said, it is much better to take adequate precaution as outlined above before signing up any opportunity. Primarily, it is very important not to be swayed by huge income claims.

Remember, any business can survive in the long term only on the basis of hard work, ethical practices, and by bringing value to its customers. Network marketing is no different.

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