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What is Network Marketing and How Social Media Helps You Succeed in it?

Abhinav Girdhar
By Abhinav Girdhar | Last Updated on February 25th, 2021 12:33 pm | 5-min read
What is Network Marketing

Network Marketing is a business model where independent contractors or non-salaried workforce sell the company’s products and earn a commission on their sales. Manufacturers use Network Marketing to expand their sales. The profession appeals to many people because it allows them to be their own boss, set their own working hours, and work towards their own success. This blog is all about how to succeed in network marketing fast.

Network marketing is very popular with people looking for part-time, flexible businesses. Some of the best-known companies in America, including Avon, Tupperware, and Shaklee fall under the network marketing umbrella.

What is Network Marketing

Network marketing programs involve a low investment – usually only a few hundred dollars for the purchase of a product sample kit – that you can use to sell products directly to friends, family, and other contacts. Network marketing specialists ask participants to recruit other sales representatives. The recruits constitute a rep’s ‘downline’ and their sales indirectly generate an income for those above them in the program.

Types of network marketing

Network marketing involves using three basic types of systematic strategies to make money – building and management, lead Generation, and recruiting. The types of network marketing strategies are:

  1. Single-Tier Network Marketing
  2. In single-tier network marketing, you sign up for the company’s affiliate program to sell their products or services. You do not need to recruit distributors, and your pay comes from your direct sales. The popular beauty company, Avon, uses single-tier networking marketing.

  3. Two-Tier Network Marketing
  4. Unlike single-tier network marketing, two-tier network marketing involves recruiting, but your compensation/profit isn’t solely dependent on it. You get paid for direct sales (or traffic you drive to a website) and for referred traffic made by affiliates or distributors you recruit to work under you. The best example of a two-tier program is Ken Envoy’s Site Sell.

    What is Network Marketing

  5. Multi-Level Marketing
  6. MLM is a strategy direct sales companies use to encourage existing distributors to recruit new distributors who are paid a percentage of the recruits’ sales. The recruits are the distributor’s downline. Distributors also make money through direct sales of products to customers. Examples of MLM businesses are Magnetic Sponsoring, LuLaRoe, and Amway.

    Two other types of network marketing strategies are marketing-driven networks and name-driven network marketing. There may be incentives for recruiting.

How to succeed in network marketing?

You need to be aware of the following things to know how to become successful in network marketing:

  • You need to know your target
  • You need to understand your audience’s requirements so that you can provide the best solution. to provide the best solution.

  • Choose the right company
  • Perform a detailed research before you opt for any company, it is important to know all the facts, especially check if they have what your target audience needs.

  • Make a business plan
  • You need to have a clear goal, everything planned and in place before you start growing and expanding your business.

  • Work on your knowledge
  • Look for a mentor, attend meetings, study the product you are offering, and pay attention to what your competition is selling.

  • Build your business
  • Recruit new members, make it a point to groom them, and consult professionals. You can also use video marketing to grow your network marketing company.

Tips to use network marketing to the fullest

  1. Be Serious
  2. Network marketing is not a child’s play; it is serious business. Start with just the right mindset, if you want to succeed. You should be more than willing to make sacrifices. Spend some extra time networking with your industry peers, studying the latest trends and applying them.

  3. Use Social Media
  4. Social Media is considered an ultimate marketing vehicle and proven success formula for network marketing. Invest in some form of paid advertising to actively connect with your audience on social media so that you can deliver value. Start with just any two platforms and stick to mastering them – like LinkedIn and Facebook.

  5. Invest in a Mentor
  6. Mentors know what it takes to cut through the clutter and get things done. You can communicate with them on a regular basis. Before seeking a mentor, make sure you are really ready to commit as he/she will help you and teach your representatives on how to succeed in network marketing.

  7. Be Positive
  8. You have to be positive even if all the odds are against you. You have to believe in yourself fully, and never be afraid of failing. Keep pushing until you get to the point you want. Most people fail and give up when they’re on a losing streak.

  9. Be Consistent
  10. Consistency is the key to discipline and success. There are many things that you have to learn about and this will only happen if you stay consistent. Consistency helps you achieve better results.

  11. Do Your Research
  12. When you get into network marketing, make sure Make sure you sell the products you are passionate about. Tie up with brands of your interest and do your research such as looking into the company’s compensation schemes and prospective clients.

  13. Use Automation Tools
  14. From scheduling posts to sending newsletters, reminders and other activities for network marketing success, use automation tools in your network marketing efforts to free time and get productive. In the digital world these days, Artificial Intelligence, chatbots, and social handle management suites make communicating with your potential clients a lot easier. You end up saving time and increasing sales. Use all your knowledge on how to get success in network marketing while using these tools.

  15. Be genuine and real
  16. Be real to your customers about what you’re offering and never oversell. Flashy and fake advertising turns away people from you. Explain the pros and cons, show the good and the bad, and let people decide on their own.

  17. Don’t Treat Your Close Ones Like Business Prospects
  18. Use your judgment and just don’t blindly follow what your network marketing class taught you. Tweak what you have learned in your favor. Your friends could turn out to be valuable customers but that will take time. Nothing will annoy them more than you constantly pestering them about your business.

How does Network Marketing Benefit Your Business?

There has been a renewed excitement about business networking, and it makes you feel that it is an entirely novel concept. That, however, isn’t true. The concept is fairly old and has been around since the time people first began communicating. So, why the buzz, you may ask! The internet age, that we are all a part of, has brought forth a portfolio of some really important tools.

Business networking has often been thought of in terms of getting new business, but it does have a strong role to play in job search, career change, hiring, selling (of course), establishing and improving business practices, and for a number of other professional goals.

Let’s talk further about the different benefits of business networking.

  1. New opportunities
  2. The single most obvious advantage of business networking done right, is that you get to meet and create relationships with loads of new people, potential clients or even referrals. These new contacts can bring new partnership opportunities, joint ventures, or even new arenas for expansion of your business.

  3. Greater visibility
  4. “Out of sight, out of mind.” An old adage that proves true, in any context. Business networking involves meeting and communicating with potential clients and business partners with some frequency. Active networking solidifies your personal profile and keeps your business fresh in the minds of the right people.

  5. Staying updated
  6. The business climate is dynamic, volatile even! This means you can only adapt, if you are always aware of the latest developments and trends of the industry. Attending seminars or other networking events, keeps you aware of these ever-changing trends, so that you not only create stronger relationships, but also are on your toes about what your customers are expecting from a business like yours.

  7. Better problem resolutions
  8. You cannot exist as an island. At different junctures in your business journey, it is only natural that you may encounter certain business problems that can be resolved with the help of certain other businesses or individuals. Business networking provides the right contacts to help you solve the problem efficiently.

  9. Access to greater knowledge base
  10. As your network expands, so does your access to knowledge and experience. This means when you are taking business decisions that are beyond your comfort zone, you get the benefit of your entire network, their knowledge, and their experience. It may not seem like much, but can end up saving you from bad investments!

Business networking can turn out to be truly effective or entirely useless, depending on how you actually execute it. Even the best sales pitches may get you nothing, if you make it on a non-descript email, and no matter how good you are, simply handing out a business card may not get you the results you have been dreaming about!

How do you build a business network?

At this stage, you are aware of the fact that building a business network brings about multiple crucial advantages for your business. Now, it is time to know how to build a successful business network.

Here are the top tips to build a successful business network:

  1. Join business networking groups wisely
  2. One of the most effective ways to build your business network is by joining the right business networking groups. There are multiple business networking groups that can prove beneficial for you and your business. However, it is important that you invest some time exploring different groups and choose a business networking group that:

    • Aligns with your business goals
    • Has members who you can benefit from
    • Is relatively easy for you to actively participate in
  3. Network in real life
  4. It may seem like an old-world solution, but nothing beats networking or meeting people face to face – in the real world. This can be done best, by attending business networking events. Now social media platforms of a variety including LinkedIn, Facebook, Twitter etc. are all good, but they are not as effective as the good old conversation in real life. So, it might seem like a great idea to scroll through LinkedIn and learn how to endorse on LinkedIn, or even find endorsements on LinkedIn. A face-to-face conversation lets your network put a face to a name, discover your charm in person, and gives you a chance to bond over common interests.

  5. Improve communication skills
  6. Your communication skills are critical, when it comes to business networking. This is true for digital or offline networking. Strong communication skills are more than just your awesome command on the language. Positive body language in communication brings an edge to your interactions with other business owners. When you have a confident body language, you are not only likely to be more memorable, but also put forth a certain sense of competence in your business niche.

  7. Offer solutions that may help others
  8. Majority of business network groups are built on the idea of exchange. It may be exchange of services, ideas, knowledge, or even support. Hence, the most important skill you must develop in yourself for better business networking is – listening. When you listen carefully, you have the ability to come up with solutions for others’ problems. Offer value. Eventually, it is about give and take. If you do not have anything to offer, but have only been asking for more and more, chances of you forging a long-term relationship are thin.

  9. Keep yourself updated
  10. Keep a keen eye on industry trends, get meaningful insights from reliable sources, and make sure that you are updated with the latest trends. This is probably why there is a growing trend of executives and professionals going back to school to continue their education. Upgrade, update, and keep learning to stay in sync with or ahead of the curve.

  11. Identify your goals
  12. Any activity must be driven by a clear goal. This is true in case of business networking as well. If you have no clue what you want to achieve through business networking, how are you ever going to achieve it? This goal may vary from one event to another. You may want to simply contribute your time and expertise to the community, soak up information from other experts, or may even be looking for referrals. Irrespective of what your goal is, the idea is to have clarity before you head to the meeting, seminar, or business networking event.

  13. Find & give a reason for follow-ups
  14. Simply making a connection is not enough. You can’t stop there. The idea is to nurture this new relationship. Stay in touch with the people you met, through meaningful interactions at least a few times in the year. This could be an invitation to a seminar or to read a great article and you can do this, even if you are not actively looking for an exchange of favors.

  15. Invest in the relationships
  16. Strong relationships form strong networks. To nurture relationships and make them stronger, it is important that you invest your time, money, and energy. In this give and take relationship, those that give have the strongest business networks in place.

  17. Be kind & appreciative
  18. No matter how small, any act of kindness must be appreciated. Understand the importance of the effort taken by people in giving you anything that is of value to them and express your gratitude. Appreciating someone for their effort goes a long way in solidifying your relationship with them and you are seen by the peer as someone with stronger moral compass, hence easier to trust.

  19. Spread Positivity
  20. It is easy to feel let down, to feel disappointed or low in general. If you are feeling this way, be sure that there are others who go through it as well. Take a conscious effort to only spread positivity and stay away from any negative thoughts or acts. This is a quality that everyone looks for, in their relationships. Incorporate positivity and you would soon see your business network flourish and strengthen.

  21. Integrate with Social Media
  22. In this digital era, you can easily increase the outreach and build the network via social media accounts. For instance, you can easily create the Facebook page promoting your business and share it worldwide. Social media platfoms have become the incredible tool to promote the business network.

Social media tools for network marketing

Social media is a tool for marketing that assists brands in building their visibility. A social network helps you build a two way connection with customers. Social media can become a powerful tool for your business success, if used appropriately.

Here are a few reasons why social media is a valuable tool these days:

  • Helps you expand your reach
  • With social media, you are no longer confined to your town or city. You can reach thousands of people from all around the world. Now even small town entrepreneurs can build a business around the world without spending all of their money and time travelling to other places. You can think bigger and expand your business to reach places previously inaccessible.

  • Helps you strengthen your relationships
  • When you expand your business, it is extremely important that you maintain connections with your long-distant team members. You can keep in touch with your team members with social media through messages of encouragement or tips on best practices.

  • Helps you build your brand
  • Social media platforms help you build your brand by making it popular. However, not all social media platforms would be suitable for your business. Different customer segments frequent different social media. Small businesses need to focus their social network marketing efforts to reach their potential customers and add value to their brand. There’s no point in spending time and money on promoting your business on the social network that your customers don’t use.

The most popular social media for businesses these days are:

Facebook – networking – Over 2 billion users

YouTube – video networking site – Over a billion active users each month

Instagram – image sharing/video sharing – Over 800 million monthly users

Twitter – message broadcasting – Over 330 million active users

Whatsapp – messaging, audio and video communications – over a billion users

LinkedIn – the largest network of business professionals – over 450 million members

Pinterest – image collection/sharing – over 150 million monthly active users

Tumblr – blogging/photo sharing

Quora – information and knowledge exchange


Making sales via network marketing is doable but only in the right way. Take the above points into consideration to see the results. Try to be on the move constantly and keep up with the trends. Learn from others’ mistakes and try being innovative. When you focus on using the right strategies to build any business, you generally come out as a winner. An individual with a lot of energy and extremely good sales skills can create a profitable business.

Social media is one of the best marketing channels today and you can create your own Social Network App to increase your network and boost your marketing network.

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Abhinav Girdhar

Founder and CEO of Appy Pie

App Builder

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