Why Network Marketing is Better Than Traditional Marketing

A simple definition of network marketing is a business model based on distribution of a company’s products or services via a network of independent contractors. This form of marketing is known by many names such as multilevel marketing and more popularly as affiliate marketing.



The whole idea of network marketing revolves around the concept of networking among groups of individuals interested in a similar niche. Normally, everyone has a circle of individuals they relate to in their daily lives who also have acquaintances, families and friends. These individuals also have different circles of other people they relate to and so on. Network marketing works by tapping into such diverse networks to sell products, services, and in some cases provide business opportunities to potential distributors who will also develop their own networks through recruitment and referrals.

Advantages Of Network Marketing Over Traditional Marketing
Compared to traditional marketing businesses, network marketing is far much easier to start and run. This is because of the following reasons:
Low Starting Capital

A traditional type of business requires a large amount of capital to start which might cal for a trip to convince bankers to provide you with a loan. The initial capital investment to start a network markting business is usually quite low. In most cases you won’t need more than $500.

No Need For Office Space And Furniture

A traditional business will require renting of space for your office or retail store. You will also require furniture and equipments while networking can easily be done using a computer and an internet connection from the comforts of your home.

No Need For Employees

A traditional business will require employees to assist you run the company. Networking can be done at home without the need for employees and is one of the best online business ideas.  

No Products Of Your Own

Unlike traditional marketing, you will be promoting a company’s products in a network set up although you can also promote your own products through network marketing.
A traditional business will require other additional costs depending on your specialization For example you will need to cater for advertising, insurance, and legal fees just to mention a few. You won’t need such additional expenses to run a network marketing business because the company whose products you promote have taken care of all those details.