Usachov V.A.
, Gensyur M.M.
Donetsk National
University of economics and trade named after Mikhailo Tugan-Baranovsky
NETWORK MARKETING: ADVANTAGES
AND DISADVANTAGES
With the help of network marketing you can reach their most exotic dreams,
gain freedom and financial independence.
Network marketing
is a unique business that fits perfectly to all people and very worthy rewards
people who they are. After all, not everyone can be an athlete or an actor,
singer or a politician. Not everyone has the necessary means to enable them to
establish their own business. But almost everyone can engage in network
marketing in different scales.
Network marketing is the concept of goods and Services based on a network of
independent distributors
, each of which,
in addition to the marketing of products, also has the power to attract
partners who have similar rights. Income each partner network consists of marketing fees and additional fees,
depending on sales volume of our committed sales agents.Work in a network can be
attractive to those who are in need of additional earnings and have free time
or for those who have the opportunity to work on a flexible schedule. Work in network marketing is a form of private enterprisefor beginners can be useful for opening
"their business" does not require major investments. However, one
desires to become a successful entrepreneur isn't enough, and only a small
proportion of those who are trying to work in network business, remains in it
for a long time and gets a solid income.
From the point of view of MLM companies themselves, the following merit
network marketing:
Network companies better going through economic crises than linear
business. Some of the difficulties faced by those companies that focus on
financial services or the upsell. In a time of crisis can occur even increase
interest in network business — people try to cover such contingencies without
solid assurances that their workplace is safe, and often come in network
marketing. Network marketing allows a person to choose the pace of growth, and
employment, as well as business partners. The Distributor interacts online in
partnership with, thus avoiding the relations of subsidiarity. The majority of
companies conducts various training programs for distributors, including to
promote personal development. In network companies people regularly receive
public acknowledgement of their results. Improving personal performance has led
to increased income for distributors. But this also leads to an increase in
income of the whole company. This is usually in network marketing, the
atmosphere of cooperation and partnership. The company regularly hold meetings
to congratulate their distributors that have reached a certain level.
Companies using methods of network marketing is often a point of
controversy in the community, and the so-called MLM companies from time to time
become the subjects of judicial proceedings. Justify their criticism primarily
relates to the following aspects:
The activities of network marketing
companies often take place outside the legal field. This product is not taken
back or exchanged, as required by law on the rights of consumers. Do not return
the money for unsold goods, there are cases of fraud.
So the main thing you need to know about
network marketing – this is one method of sale of consumer goods. This mlm is
different from the various “pyramid schemes”, the organizers of which make due
contributions to new members. Pyramids are fraudulent organizations, a form of
consumer fraud and banned in many countries.
In network marketing, on the contrary, the network
is constructed for the sale of goods. Production company derives income solely
from the sale of its products. And mlm network members receive income from the
sale of goods with the help of people who have been trained by him in this
business.