Network Marketing is a marketing strategy employed by some companies that excludes the advertising agencies and all the middlemen and directly uses individuals to market and sell its products.
In this case all the commissions are enjoyed by the Network marketer. That’s why you’ll hear about too much money in Network Marketing.
The marketing and selling is done in a Multi-level structure or a pyramidal structure. Each individual will start his own network and grow it downwards as more people join his tree line.
Network marketer earn commissions from their own work and from the work of other marketers in their network or tree line usually called genealogy. The bigger the network the bigger the cheque.
Last year alone Safaricom used about 7.9B advertising it’s commodities. Network Marketing companies use individuals hence they get a share of all the billions that would rather be spend on TVs, radios, billboards, FB etc adverts.
One fact you’ll notice about Network Marketing companies, they deal with high quality products. You display this products in the supermarket shelves and they’ll be passed by due to their prices. Hence the need to have people who already using them to recommend them to other people. Most of those products need explaining to new buyers before purchase that’s why they are sold directly by users.
For a small assignment, google “what billionaire say about Network Marketing”