Report on The Circle of Life in Network Marketing Relationships

Network marketing is a business form that originated in the United States during the 1950’s.
From there on, network marketing companies have gained exceeding ground and have
become widely spread and recognized, especially during the past ten years.

Report on The Circle of Life in Network Marketing Relationships

Introduction:

Network marketing is a business form that originated in the United States during the 1950’s.
From there on, network marketing companies have gained exceeding ground and have
become widely spread and recognized, especially during the past ten years.

Companies such as Tahitian Noni International, Herbalife, Oriflame and Forever Living Products are all
examples of well-known network marketing companies. Today, an estimated 58 million people have involved in network marketing throughout the world and in 2006 the worldwide sales accounted for an estimated USD 109 billion (Direct Selling Association: Worldwide Sales, 2008). In Sweden, more than 100 000 people are involved in network marketing companies and the turnover amounts to over SEK 2.9 billion (Direkthandelns Förening:
Nyckeltal, 2008).

Download More Reports:

Network marketing companies are in many aspects similar to any other type of company; they
have customers, employees and sell goods or services and market their products. What makes
network marketing companies unique is that their main asset is their distributors (independent
product consultants: IPCs). The IPCs continuously recruit new persons to join the company
and without this recruitment, there can be no network, which in its turn would undermine the
entire business form.

Network marketing companies have, throughout the years, fought for becoming accepted as a
legitimate business form. Even though the business form has been around for quite some time
and engages millions of people around the world, it has been looked upon with great
skepticism mostly due to the association with illegitimate pyramid schemes. Still today this
skeptical view to some extent lives on, but the business form continues to grow rapidly.

Source: mba.final-year-projects

Attachments

Leave a Reply

Your email address will not be published. Required fields are marked *