What is network marketing and how it works?

5/5 - (35 votes)

The Network Marketing: Even today many people do not know that What is network marketing and how it works? which is also called MLM, or is also called direct selling business? How does it work, how can you also start your career in network marketing, what is network marketing and how to do it? All that I am going to tell you today.

What is the full form of MLM: The full-form of MLM is – Multi-Level Marketing.

What is right and what is wrong in network marketing and I will tell whether this business is right for you or not, and if it is right then how to do it, how to earn money in it? How to make your dreams come true.

What is network marketing

Today I will give you complete information about Network Marketing. I do not want that even today, take incomplete information from one article, then read another article or even go to YouTube and watch half-finished videos, how many videos will you watch or how many articles will you search in Google? How much time will you spend, then only one time.

I can definitely say that at the end of this article your knowledge would have increased a lot.

What is Network Marketing?

Network marketing is a business in which you use a company’s products and services and tell others about it, that is, they sell it to others, and when you make a sale, you get some share of that profit Is.

How can network marketing be a business?

Network marketing business because in this you have the option to recruit people who sell products and services to others and those people also have the option to recruit people who sell products and services.

Whenever this entire cycle of products and services is bought, consumed, purchased, its profit is distributed among all, hence there is business. It has the option to grow.

According to a report of ASSOCHAM, the turnover of Network Marketing in India in 2016 was 12630 crores, in 2023 it is predicted that it will increase to 15920 crores. This network marketing industry is growing.

Benefits of network marketing

Network Marketing

1. Will Network Marketing grow later

Why will it not grow, maximum population of the country is increasing youth, whose purchasing power is high, consumption is high and above all unemployment is high in the country, they also need employment and consumption of products and services, will also buy.

And both the things meet in this industry, so there is future prospect growth in this network marketing industry, but is this business right or not, is it right for you and if it is to be done then how to do it?

What are the Positive Sides of Network Marketing? What is the advantage in this?
Network Marketing has many positive sides.

2. Financial Freedom

Many people have reached financial freedom by coming in network marketing, financial freedom means because it is a business, it has grown to that level.

There is that scope in this that you can fulfill your dreams. Whether it is a dream of an expensive car, a dream of a beautiful house, some dreams of parents, or whether to go somewhere or to make their lifestyle better, all these things have been achieved by many people in this business, that is why financial freedom The scope of this network marketing business gives.

3. Networking

Because this is a network marketing business, there is network in the name itself, so networking will remain an important part of it, anyway it is said – “The Best Way to Work, is to Network” means you meet people in it, learn from people Yes, you teach people, this is people’s business.

Anyway, the importance of human touch will always be there. No matter how digital we become, this world is run by humans, and that opportunity, those opportunities gives you this business.

4. You are your own boss in Network Marketing

Nowadays many people say that I do not want to work inside anyone. I should not report to any boss. Here you have your own work, you do not report to anyone here, for coming or going. You are your own boss.

5. Passive Income

Even if you are not working any day, income is being created for you, you are earning money, Network Marketing is a good opportunity for passive income.

6. Qualifications

How many such jobs are there or how many such professions where educational qualification is not necessary, merit is not necessary or good marks are not necessary or good college is not necessary, this network marketing business also only sees your hard work, does not see educational qualifications.

There are many such people in network marketing who are 10th pass, 12th pass, there are also those who have not even completed schooling and are earning lakhs of rupees today.

How much money is needed to do network marketing business?

In network marketing, the entry cost for doing business with any company is very low or it is negligible in any one. There is no exit cost in this.

It is not necessary that you take an office, then keep a team, keep accounting, keep finance, it is in your hands what you have to do, your working hours are in your hands.

Personality will also develop

You also get training in network marketing. Training is given a lot of importance in the network marketing industry. Network marketing has taught how many people in India to walk, wear tie, talk, communicate.

What is going wrong in network marketing and how to avoid it?

1. Sprain in thinking

Many times I have seen people join network marketing thinking that only two-three people have to join, after that money will start coming. You will not have to work too hard.

Some people join thinking that it is okay, they are telling me to join, then I join, after that he will do the work, I do not have to do any work. Some think that just joined is just a business of comfort, after that money will start coming, and these are all the people who are spreading negativity.

There is a twist in the thinking that you will not have to work, you will not have to do anything, the money will come if you join. Whoever joins this business thinking like this or whoever joins others by saying that just join, money will come. So this is the problem, because of this negativity is happening.

“Whether it is any business, if you want to fulfill your dreams, if you want to earn money, then you have to work hard.”

So if you are not ready to work hard, this business is not for you. Those who only join, become a part of this business and do not work for it, those are the people who call this business negative.

Those who call network marketing business negative, ask them a question and see what you have done to earn in this business? His answer would be – “Did not do anything or we had come thinking that nothing has to be done in this, just a couple of people have to join.” This thinking creates the problem.

2. Low Entry/Exit Cost

To understand this point let’s take an example – “Two boys went to college to study. One spent lakhs of rupees and one did not have to spend anything.

The one who has spent lakhs of rupees, has put money out of his pocket, he is more serious about his studies, he is focused, he is trying to study, he is trying to work hard.

Whose pocket has not lost anything, he is sitting comfortably, enjoying killing, he does not have such seriousness. Who will be more successful at the end?” Friends, because the entry cost in network marketing business is very less or it is not there, so many times people do not take seriousness in it.

They feel that we have gone, so that seriousness does not come. When the investment is more and not in anything, when it is known that if exit is taken then it will be a loss. So we are very serious about that, remain passionate.

The strength of this network marketing business is that the entry cost is low or negligible, there is no exit cost, so some people make it a weakness of network marketing.

Because of this people do not work in it, do not work hard, then negativity increases.

3. Don’t associate with crooked companies

You must have seen in the news that the MLM company showed the dream to the people and went away by fraud of crores of rupees. It is also necessary to avoid these company, they run some Ponzi schemes, some do money laundering, where there are opportunities there is exploitation.

Some companies are making opportunities in cash and some companies are exploiting these opportunities. How will you find out which company is right, how can you settle with crooked company, I will tell you further.

4. Wishing vs Expecting

Wishes are there, want to earn something, want to become something, but there is no expectation that I have to do it. Not wanting to learn, not wanting to take training, not wanting to break their mind blocks.

Wanting to go on their own terms, they are not using the company which is giving training. Not wanting to do anything, just wishes, no expectations from ourselves.

Expectation is very important. Learning is very important, training is very important, if you train yourself, there are many opportunities in this business for training and companies that do not train, those who are not training networks, should not even join.

Success cannot be achieved without learning, growth cannot be achieved. Why do big companies train people, because they understand that things change everyday, trends are changing everyday. There is scope for new training everyday. There is scope to learn and move forward.

How to Earn From Network Marketing?

It is very important for you to decide whether you are interested in this business? Not everything is necessary for everyone. If you want to earn money, you have dreams, you are interested in this type of business, want to take its benefits, And they are ready to work hard, learn, there is no spin in thinking, if you want to understand the company, then know how you can earn from network marketing.

How to join network marketing?

1. Choosing the Right Company

Choosing the right company is like choosing the right leader. If the leader is wrong then the followers associated with him will also be wrong. Will go to loss, and if the leader is right then all the people associated with him are right.

2. What to do to choose a company?

First of all check the credibility of the company, is the name of that company good? Is it a reputed company? Does he have the certifications he should have?

As he has got certification like ISO, his time to time audits are done, and how many years have been operating that company? From these things you will know how is the health of the company.

If a company has not come, it is not very old, then its age is not of the company, then how to go?

If you are joining a new company, then look very carefully how people are involved in that company, what is the reputation of those people, how is the credibility of those people, what kind of people are those people.

You get an advantage in the old company – you get experienced, you get the observation of the people, in the new company you check more carefully.

3. Products and Services

Is the products and services that the company is making right? Authenticated, is there any legal issue? is it certified? This is very important to know, you must also see whether those products and services are going to be used regularly?

Example – A company made a cooler, that cooler was bought by some fellow. He will buy again after 5 to 6 years.

Whereas a company is making home products or medical products, it is such things which are used again and again, this type of thing which is used regularly, it has repeat value, customers buy again and again. Transactions are happening again and again.

  • Now do you believe in these products?
  • Will you use these products and services?

Because if you do not have faith in that product, you will not be able to give confidence to others. You will lie, and honesty’s business is not futile, friend.

4. Company Policies

Some companies are operating in the market which is taking, giving and taking money just for joining. If there are no products and services, then the chances of fraud in it are very high.

But if there are products and services, you are getting profit from the turnover of the products being sold, then it has the nature of a real business.

You should also check how to get the payment you want to get, to come to the bank, if you want to come to the bank, how is TDS deducted, you should know all these details on how the transaction is going on?

When you are selling this product, people will be using your products on top of it. So your one monthly income will be increasing.

When you are earning, some of these people will ask you that I also want to earn like you. People will come to you by themselves. Then your network starts building. Then your network starts growing.

Because people believe in you, because if this guy can earn and I can earn too. I can learn from this. People need jobs but trust is essential.

You yourself will work hard first, people will believe. Only then will you be able to give employment to them, you will be able to serve them too. Money will come to their house also because of you. Their dreams will also come true.

Many of you make this mistake that you start making everyone a businessman. Not everyone wants to be a businessman or friend. Some people must be consumers. You will increase your sales.

Some people will be your salesman whom you will recruit, who would like to work, want to earn like you, some would like to be a sales manager under you. Those who earn first, then put down more people like you.

In this way your network will be formed. Sales is a very interesting profession, there is a lot to learn in it. There is a lot of improvement in life.

5. Training and Support

Is that company working on training and support? Are there physical workshops to give training, regardless of the form of videos in which they are training you?

Because learning is very important in any work, not just in this network marketing business. Even the biggest businessman learns everyday. As long as it is learning, it is growing. So does the company give importance to training?

Is it important to teach you to support you?

Now friends, when you have seen these four things, you feel right, then when you are joining that company, then dedicate yourself completely. For that company, for the training that is being given for your upline.

The identity of the company is your identity. The growth of the company is your growth, don’t waste your time in finding faults in it. Drawbacks will be found everywhere. You have done the investigation well, now go according to the company, grow yourself, and make the company grow.

Only then will the confidence come when you are connected with that company from the heart, you will feel that bond, you will be devoted. Friends, there are people in India who are earning 20 lakhs, 30 lakhs, 50 lakhs a month through network marketing.

Those people say that – “Many people join network marketing business and thinking that I have to join more people in it, I have joined, now let me join both more, then join more, get this join.” The goal in sugar is forgotten.

If you want to be successful in this network marketing business, then you have to become a consumer first, you think that you have to join the fellow, but it will not be a business at all, you have to increase the consumer.

First, you will have to sell yourself, whoever is reaching lakhs of rupees a month, they sell themselves first. It is your responsibility to deliver good products to people’s homes, you are doing service.

You have faith in those products, bring people to those products, tell them to use them, make them consumers.

When the sale itself is done, then the people who will be under you will not be able to teach them how to sell, you will be able to make them leaders.

If it is not done by itself, then only the fellows will keep joining, products and services are not being purchased, transactions are not taking place, then the business will not grow. You will not grow Then you will say that nothing is kept in business, there is a lot of negativity in it, man. If something happens, it doesn’t happen, why?

Because you started joining, you did not see that you have to become a consumer first, first you have to sell yourself.

You do a simple thing, which is your product, it should be used in the homes of people around you, this is your thoughts, this is your target. You have to make consumers, tell them why these products are important and why they should be used.

When you are selling this product, people will be using your products on top of it. So your one monthly income will be increasing.

When you are earning, some of these people will ask you that I also want to earn like you. People will come to you by themselves. Then your network starts building. Then your network starts growing.

Because people believe in you, because if this guy can earn and I can earn too. I can learn from this. People need jobs but trust is essential.

You yourself will work hard first, people will believe. Only then will you be able to give employment to them, you will be able to serve them too. Money will come to their house also because of you. Their dreams will also come true.

Many of you make this mistake that you start making everyone a businessman. Not everyone wants to be a businessman or friend. Some people must be consumers. You will increase your sales.

Some people will be your salesman whom you will recruit, who would like to work, want to earn like you, some would like to be a sales manager under you. Those who earn first, then put down more people like you.

In this way your network will be formed. Sales is a very interesting profession, there is a lot to learn in it. There is a lot of improvement in life.

What to do after joining Network Marketing or how to get success in Network Marketing??

Make a list of all the people you have in your contact book, and divide the list into 3 categories Hot, Warm, Cold.

Write those who are very close to you, people who are near you, at the bottom of the hot list, those who are a little far from you are not very closed, but still closed, write those below the warm list and those who are far away. In the cold list.
Now what you have to start is with the hot list, it is your own, people around you, you already have some confidence in front of them. If they trust you, then your understanding, your training, how to keep your word, what questions can come, you will know from that hot list.

Then you will come to the warm list, when you start talking to the warm list, some people will be interested, those who are interested will come to the hot list. Some people won’t be.

Then you will come in the cold list. Gradually you will keep expanding your list, and when you are doing this, you will get a concept that is Ratios. It is very important if you want to do business.

This in-fact concept will come in handy for you anywhere, not just in network marketing.

What is the ratio in any business?

Suppose you called 10 people. 3 out of 10 people refused outright. There are three who are hanging, that yes will ever meet. 6 people refused, now 4 people are interested to meet you.

Now you met 4 people out of which 3 people did not take anything but one took your products. For ₹ 500.

Now your ratio is – 10 called, 4 people got, and one took the product, ratio = 10:4:1 and this is what you sold for ₹ 500.

Earn ₹500 on 10 phone calls, that means ₹50 on one call. You have to understand this ratio that I am earning ₹ 50 on one call. They are doing yes or no, but in every call you will have a motivation that you have made the call means you have earned ₹ 50.

When you will be able to understand your ratio, then you will be able to calculate yourself accordingly.

Now look in selling all the games are of numbers only. If you want to earn more, you make 20 calls instead of 10, make 30 calls, you know that on every call you are getting a purchase value.

Now you keep improving your ratio, every big network marketer, every big salesman improves this number that when 2 out of 10 people convert, when 3 out of 10 people convert.

The more you grow, you go on seeing your ratio everyday, you keep on learning, what can be learned? Training can be taken, a book can be read, you can learn something from the upline, and how can you increase your number. Not everyone will be your customer.

Not everyone takes Apple’s phone, not everyone gets Oppo or Vivo’s phone, but these companies are not crying. Apple is not crying why everyone is not taking Apple phones. He is improving his ratio so that more and more people take it.

Vivo is improving its ratio so that more and more people take their phone. You also have to improve your ratio. Not everyone will become your customer, but how much you are able to convert, how many people you are able to serve, it is important.

How to Run Network Marketing Successfully?

1. Give Support to Downline

Some are your customers who take products from you, some are people in your network, who are selling like you, who are selling to people inside you, you have to support both.

It is very important to give support to the customers, how they are feeling the products, they need some products, keep following up with them, keep calling them, it is your duty to give them support, it is your duty.
It is also very important to support those who are trying to earn like you, who are working inside you.

2. Have a Welcome Meeting

Whenever someone joins your network, first of all you have a welcome meeting with him, tell him about the business well. Tell about your upline, your downline, tell about the nature of the business.

3. Give Tools

After that it is very important to give him the tools, which he needs to learn, to move forward. Some things you must have learned from your experiences, these tools are better – give him those tools too, this method remains better, this idea is better, this is done like this, knowledge of products is taken like this, all the tools Give it to him

4. Helping Hand

Initially everyone needs support. Someone supported you too. Help him, need to accompany him to a meeting, need to understand something, need to be with him on a call, need to take a call, your network, your downline, provide him with a complete helping hand .

Remember that you are a motivator. The more you can motivate them, the more they will be able to grow, and you will be able to grow. The most closed ones are yours, so in this business you have to motivate them regularly.

You can forward videos, you can share similar articles, you can take out some of the books and give them. You can get any posters printed, but it is very important to motivate regularly. You can give them courage by making phone calls again and again.

What a person wants – a person wants someone to listen to him, show him some direction, give him some chubbasi. It is the wish of every human being. It is your duty to fulfill this need.

5. Make A System

You must make a system, definitely give a system to your network. There is a discipline under the system. Everyone is motivated, passionate, wants to do network marketing, but everyone is running in your network in different ways, you are sitting, you have experience, your upline has experience,

You have learned from training, you have learned from video or article, on the basis of that build a system and give that system to your network. That this is a system that you can follow. Together as friends, you have to walk with teamwork.

It’s not that I’m the upline, it’s my bottom. You are a team, you are their friend. Remember – “Your Team Works Makes Your Dream Works.” Your team makes your dreams come true.

This is a big plus point of network marketing, where in the rest of the business everyone wants to move ahead by dropping each other, here one is made and moved forward.

It is important for you to make the people associated with you as leaders, if they become leaders, if you have many leaders under you, then you will grow.

6. Build Leaders

You have to make people leaders in your network, so that they lead, so that when your need ends, they start leading themselves.

Know one thing for sure that you should reinvest, meaning out of the money you are earning, you should put a lot back on yourself and on your network.

Put yourself into teaching, to teach them, to train them to make them leaders, to give them books, to do their workshops, put money from your pocket to meet them.

Any business grows only when its money is not just put in the pocket, when it is reinvested. Initially, the percentage can be kept low as 20% or 30%. When you earn more, keep increasing your percentage.

Now that you are making leaders, you must be in the market somewhere, keep connecting with your direct people, you keep getting to know the market, you stay connected in sales, your network keeps on growing.

Remember this thing is not an investment, it is an expense, it always gives returns.

Legacy Marketing Network

Video form Legacy Marketing Network Youtube Channel.


When you grow, when you move forward in network marketing, don’t stop respecting your upline, many times we think that he is earning because of us, we stop respecting him.

If you do not respect your upline, then your downline will not respect you. Just like your parents have a role in bringing you up in your personal life, so is your upline’s role in your professional life.

If you are reading this long article till the end, it means that you are passionate about network marketing, committed, you want to live your dreams, want to do something in life.

So friends, how did you like our article today (What is Network Marketing? and whatever question or suggestion you have, do comment below and tell this article (What is Network Marketing and how to do it? – Network Marketing) Share with your friends.

FAQs on Network Marketing

How do I know if an network marketing opportunity is legitimate?

Legitimate network marketing opportunities are transparent about their products, compensation plans, and compliance with legal regulations. Research the company’s history, reputation, and product demand to make an informed decision.

Are all network marketing opportunities scams?

No, not all network marketing opportunities are scams. Legitimate network marketing companies operate legally, have quality products, and focus on both product sales and recruitment. It’s essential to differentiate between legitimate MLMs and illegal pyramid schemes.

How can I avoid falling for network marketing scams?

Avoid opportunities that promise quick wealth, have unclear product value, or primarily focus on recruitment. Conduct thorough research, seek testimonials, and be skeptical of exaggerated claims. Consult with experienced individuals or professionals for advice.

Sharing Is Caring:

My name is Pradeep, I tell you YouTube, blogging, digital marketing and how to earn money online with my 5 years of experience.

Leave a Comment