Why Everyone Should Join the Network Marketing Industry.

WhyEveryone Should Join the Network Marketing Industry.

Backgroundand Thesis

Networkmarketing or multi-level marketing as it referred to all over theworld is one of the fastest growing phenomenon today. It has grown tobecome an industry with more than ninety million users and stillkeeps attracting thousands of people each year. Network marketing canbe defined as a type of business opportunity that features a lowupfront investment to directly sell products while building adistributor network. The fact that a person can distribute productsfrom anywhere and generate income as he or she builds the networkwithout necessarily having to leave any other occupation makes itattractive (“NetworkMarketing”).The history of how network marketing is not documented anywhere.However, it is believed that the idea dates back to the 1930s whenCarl Rehnborg invented it as a strategy towards boosting his productsales. Carl founded Nutralite, a California Vitamin Company, afterdiscovering the benefits of supplements in the human diet. Theconcept of network marketing emerged as soon as distributors realizedthat more sales were being generated for Nutralite. As a result ofthe strategy, the Carl’s company realized huge growth and profitsin the following years. The rise of the internet has brought in newway of creating network for businesses. Basedon the discussion above, it is justifiable to say that everyoneshould endeavor to join the network marketing industry and build afortune for themselves.


Themulti-level marketing industry has successfully produced millionaireswho probably never dreamt of reaching such a status. Whilethe network marketing concept has made a difference in the lives ofmany, it has also another share of individuals who have either failedor have been disappointed in achieving their expectations.Anytime the idea is shared to people, there are those who will givenegative remarks arguing that it will not work (Yarnell&amp Yarnell n.p).Accordingto the ManagementStudy Guide, thereare those who criticize and oppose the Multi-Level Marketing businesspointing out that pyramid selling has had a history of lies andexploitation. Most of the people who get to hear how networkmarketing works tend to be perplexed and wonder it is true. The kindof money shown during the explanation raised questions whether onecan make such an amount in reality. Those opposed to the conceptargue that network marketing is a scam.

NetworkMarketing involves buying products for yourself, family and friendsas you increase your sales volume. A person accumulates discounts asthe sales increase. Another activity involved is building adistributor network by recruiting others who will function under yourumbrella (Geraldand Peterson 346).Well, not everyone believes in this idea since there are those whoconsider it as fraud and an act of robbery and slavery. Working hardevery day to accumulate passive income while generating income forsomeone else is a form of slavery. During the colonial period, peoplefrom developing countries provided cheap labor for the whitecolonialists (“Management Study Guide&quot). The masters are thoseproducing the products and the slaves are those selling the products.Network marketing is therefore perceived to be similar to slavery. Inother words, it is a modern day slavery that involves mindmanipulation.


Thereare many more negative remarks and standard objections that areusually raised by people who do not have a clear understanding ofwhat multi-level marketing is about. However,the fact that companies, such as Oriflame, Avon, and Amway, are stilloperational globally today means that network marketing is a clearindication that it is a legitimate business (“ManagementStudy Guide&quot). These companies have been operating for more thanthree decades now. Another proof of its legitimacy is the many peoplewho have signed up from all over the world and have generated income.The government has also enacted regulations that ensure that theindustry complies with Fair Trade Practices (Geraldand Peterson 349).Whether in the corporate world, in clubs, or in offices, networkmarketing exists across the different sectors in the economic world.The strategy works for students, professionals as well as any otherperson willing to start a business. The existing myths surroundingthe concept can’t be justified.

Whatmakes the network marketing industry attractive is the fact that anyperson can be part of it and enjoy the benefits regardless of theirexperience, age, and qualifications. There are people earningmillions from multi-level marketing yet they have no financial orbusiness background (“Management Study Guide&quot). The networkmarketing industry has made significant contributions in the economicand social life of people in different countries. A report by theaudit firm KPMG indicates that the industry is estimated to be around72 billion Indian Rubies (“KPMGin India”).It has provided additional income opportunities to hundreds ofthousands of local citizens and promoted micro-entrepreneurship.According to the report, there are over 5 million people engaged withthe industry and the numbers are expected to grow further as theindustry expands.

Rosalind,Suoranta, and Rowley (673)assert that people often engage in business to gain financialfreedom. Network marketing makes it possible for a person to generatelots of income without necessary being there. In employment, one isrequired to work in order to be paid. If he or she stops working,then there is no income generated. The multi-level marketing industryinvolves building a network of distributors from which one generatesincome even when he is not working (Geraldand Peterson 349).The industry has led to the development of the Small MarketEnterprises Sector in most countries (“KPMGin India”).Most of the network marketing companies rely on SMEs formanufacturing their products. Initiatives by these companies haveenabled SMEs to develop capabilities to meet the needs of othermanufacturing companies.

Theworld’s population is growing every year and the demand fordifferent products is also increasing. People in business have anassurance of market expansion as the number of people grows each day(“Management Study Guide&quot). The internet is as well changinghow businesses operate especially in terms of reaching customers. Theonline presence is ever increasing. All these are opportunities forbuilding networks since it is much easier to access a person fromanywhere in the world (“KPMGin India”).Although the network marketing industry is operating in more than ahundred countries, its future remains bright. The industry enablespeople to develop themselves and also change the lives of others(Geraldand Peterson 350).For instance, in India the industry has contributed significantly tothe empowerment of women and development of skills. In the 2013financial year, the network marketing industry is estimated to haveprovided self-employment to about 3.4 million female distributorsacross India (“KPMGin India”).For many years, women have been denied some opportunities in somecountries including access to descent employment. Network marketinghas presented self-employment opportunities to women across the worldand they can now manage their time as they work and better theirlives.


Inconclusion, network marketing is still one of the fastest growing andmost successful forms of marketing products directly to buyers. Thereare regulations that moderate the industry and it is perfectly alegal venture that anyone can join. Although there are negativeremarks and objection regarding the concept, many people have beensuccessful in this business model. The industry has also created jobopportunities for people from different spheres of life thus makingtheir lives better. The fact that companies such as Nutralite, Avon,Amway, and Oriflame have successfully grown and operated with a hugenetwork of distributors across the world means this concept is realand profitable. Succeeding in any form of business requirescommitment and effort. The network marketing industry also requiresfocus and enough time for anyone to enjoy the benefits discussed inthis paper.


DirectSelling: KPMG in India. Retrieved from: https://www.kpmg.com/IN/en/IssuesAndInsights/ArticlesPublications/Documents/Direct- Selling.pdf.Accessed 3 Oct. 2016. Web.

Gerald,Albaum and Peterson, Robert. &quotMultilevel (network) marketing: Anobjective view.&quot TheMarketing Review11.4 (2011): 347-361. Print.

ManagementStudy Guide: Multi-Level Marketing. Retrievedfrom: http://www.managementstudyguide.com/multi-level-marketing.htm.Accessed 3 Oct. 2016. Web.

NetworkMarketing.https://www.entrepreneur.com/encyclopedia/network-marketing/.Accessed 3 Oct. 2016. Web.

Rosalind,Jones., Suoranta, Mari., and Rowley, Jennifer. &quotStrategicnetwork marketing in technology SMEs.&quot Journalof Marketing Management29.5-6 (2013): 671-697. Print.

Yarnell,M., &amp Yarnell, R. R. (2010). YourFirst Year in Network Marketing: Overcome Your Fears, ExperienceSuccess, and Achieve Your Dreams!Three Rivers Press. Print.