Advantages and Disadvantages of Network Marketing


Network Marketing


Network Marketing refers to the marketing done through individuals for the company through a chain of hierarchy. It is a systematic flow chart of individuals who become distributors and then find customers who can turn into potential distributors. Thus, forming their downline.

In our previous blog What is Network Marketing we have explained briefly about Network Marketing, how does it work, and If it is the right choice for you.

Moving on, we will explain what are the advantages and disadvantages of Network Marketing. At first, we will deal with the advantages and will move on further.

So let’s get started-

Advantages of Network Marketing –

  1. Saves Money
    The first and most important advantage that it holds is that Network Marketing will save you a lot of money. How does it save money? Well, the marketing for the company is done by individuals which is a lot cheaper than the traditional way of marketing and advertising.

  2. Work from Home -
    Individuals also benefit from this type of marketing because they get to work from home. No office hours and no pressure. Work according to your comfort and be your own boss. Individuals who have a strong network in their friends and family can sell the products to their circle/network and gain profit.

  3. Strong Network
    You don’t need to have big capital and money to start doing this business. Rather you just need to have a strong network and you are good to go. A strong network of friends and family can help you gain profit through sales to them.

  4. No degree -
    You don’t have to be a graduate to start this business or you don’t need to have any experience in the field of MBA. Students, housewives, and even the elderly can start this work from their homes. It does not require a lot of physical and mental strength.

  5. Convincing Power -
    You just need to have good convincing power so that you can influence your potential customers to buy the product and you should also be able to explain these products that you are selling very briefly to them.  And that is it!

Disadvantages of Network Marketing

  1. Fraud Companies -
    There are a lot of fraud companies that cheat people through their schemes. It becomes very difficult to trust and make sure that the company is not a fraud. This also makes it difficult for genuine companies to find individuals as they do not trust the company easily and are not ready to sell their products to their network.

  2. Lack of Experience -
    Since the individuals associated with your company are not professionals. This leads to bad marketing and even the good products are presented badly leading to a bad image of the company and the products. Thus facing the downfall.

  3. Downfall -
    The Downfall in this type of marketing is very quick and if you have one dissatisfied customer it will lead to 10 dissatisfied customers because of the chain and people associated with each other. It becomes very tough to maintain the reputation of the company for a long time.

  4. Lack of awareness -
    People often believe what they see and since there is no marketing of the products on television or boards, it makes people uncomfortable in trying out things through network marketing. So, selling the products and making a profit becomes a tough job for people associated with network marketing.

Since you know what are the advantages and disadvantages of Network Marketing. You might realize that there is no hard and fast rule to earn money. You need to check the authenticity of the company and then invest in it as people are being scammed easily.

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Jagdish Shop is a direct selling company dealing in world-class apparel, home appliances, health care, and personal care products. We deliver the best quality at your doorstep. So that you don’t have to go out and invest your energy. We bring new and innovative products to make your life simple with amazing offers and discounts. Our easy to return policy and shipment process is very hassle-free and we promise to deliver your products on time. Happy Shopping!