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

By Shivani | Last Updated on November 27th, 2020 7:16 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.

Advantages of Network Marketing

  1. There is no limit on the size of the network marketing structure. Companies can tie-up with a large number of people to become distributors.
  2. Due to the direct engagement of customers, companies do not need to rely on advertising to market their goods.
  3. The structure of distributors also reduces the profit margins of retailers leading to a lesser burden on the companies.
  4. The expenses of the company on storage and distribution reduce as distributors end up bearing these expenses themselves.
  5. The expense of the company on traditional and paid advertising reduces.

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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About The Author

Shivani Sood, senior content writer at Appy Pie, is passionate about writing. Over the 16 years of her vast experience she has been writing and editing for media and publishing houses on various subjects. All her life revolves around words and grammar. She loves to write on any and every topic on the earth. In her free time she enjoys reading and gardening. She is an ardent cook and loves to create new recipes.

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