What is Network Marketing?

Network Marketing is another form of direct marketing. It is primarily more concerned with the organization of a sales network than with the sale itself. The networker mostly starts to build up its own business before helping then other business partners to build their own, similar to a franchisor. In difference to franchising where only one company opens new branches, in Network Marketing each independent business owner can open new network businesses, but with low financial investigations and without risk.

A networker undertakes the task to organize the network, to get paid for the sales qualified for bonus within that branch network. Another feature of Network Marketing is to build up an transnational business by sponsoring international partners. Especially in Europe, Network Marketing represents one of the best examples how to make use of a single European market place.

A report from Prof. Dr. Michael Zacharias, University Worms, in 1996 has shown, that the total revenue in Germany made in Network Marketing is still very low (approx. 300 million EUR p.a.), but it will be fast-paced. In the Ukraine the market has just started (Nov. 2003), and the market in Russia will start 2004 too. So in these countries we will see incredible and surpassing business growth in the next years. If you are from the Ukraine or Russia, or you know people from there, then you can directly benefit from it. You can offer them an opportunity to build their own business.

This was just an example, there are more exciting success stories from other countries as well, e.g. Sweden, Korea etc., and the opportunity is identical in all supported countries. In Europe the Network Marketing business is still in its infancy. Only 0.7% of trading are currently made with Network Marketing. So this distribution channel has a huge potential for growth in future all over the world.

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