How To Explain The Concept of Network Marketing To A Prospect

The following has been adopted from an interesting article I recently found online (author unknown).

Have you ever struggled when a prospect asks you, “what is network marketing”?

The concept of MLM and network marketing seems simple enough, but sometimes it’s hard to come up with just the right words to explain it effectively. Here is a comparative you can use to illustrate the concept in a way that everyone can understand.

Let’s say there are two big companies in the health business: Company # 1 and Company # 2.

Company #1 buys a lot of expensive advertising on television and newspapers in order to promote their products. Their product sales rely on people responding to their expensive advertising by going to the local store where their products are sold and buying them.

Company # 2 (your network marketing company) decides they want to attract more business by using a more efficient business model. They know how easy it is for a product to get lost among competitive offerings on the store shelf. They also know that word of mouth is the best advertising there is.

Rather than sink all their promotional money into advertising and marketing, Company # 2 decides to give everybody who buys products directly from them a significant discount; one generally equal to or greater than the amount of money Company # 1 spends on conventional marketing and advertising. They also know that everyone likes to save money on the purchases of products they personally use, like and believe in, and that they’ll probably be anxious to tell their friends and neighbors about the products too!

Company # 2 also figures that since you’re going to be talking about and promoting their products to others on their behalf, it’s only fair that you should be compensated for doing so, so they provide a further incentive. They allow people to become product “distributors”. They give them the opportunity to sell the company’s products and offer this same opportunity to people they know. They reward distributors efforts to spread the word and build teams by paying them a percentage on all the purchases made by the people they help bring into the business. It’s a small commission, but it adds up fast.

Pretty soon, by encouraging people to personally use and professionally represent your network marketing company’s products, you begin to receive enough commission to pay for all your own purchases. In time, and with consistent effort, your network marketing income can grow exponentially.



  1. Aw, this was a really nice post. Taking a few minutes and actual
    effort to generate a really good article… but what can
    I say… I procrastinate a lot and don’t seem to get anything done.


  1. […] How To Explain The Concept of Network Marketing To A Prospect ( […]

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