Products and Services of Marketing

1.Products and Services:

Network marketing typically involves tangible products (eg, health supplements, cosmetics) or services (eg, financial services, educational platforms).
Reps often promote products directly on their social networks, leveraging word-of-mouth marketing.

2.Training and Support:

MLM companies typically provide distributors with training, marketing tools, and guidance to help them grow their business.
Upline support is critical, as success at every level often depends on downline success.

3.Challenges:

a. Recruiting Focus: Some MLMs are criticized for prioritizing recruiting over product sales, which can lead to pyramid scheme-like operations (illegal in many areas).
b. High Dropout Rate: Many people struggle to earn enough income due to difficulty in recruiting and selling.

c. Market saturation: As more distributors join a particular network, competition increases, making it harder for individuals to succeed.

4.Pyramid Schemes:

Pyramid schemes are illegal and are often confused with MLM. The difference is that MLMs focus on selling products, while pyramid schemes rely primarily on recruitment without product movement.

5.Legitimacy:

Legitimate MLM companies operate under strict legal guidelines, ensuring that their income opportunities are tied to product sales rather than just recruiting. Examples of legitimate MLMs include Avon, Amway, and Herbalife.