All You Need To Know About Network Marketing

How does Network Marketing work?

Network marketing also known as multi level marketing(MLM) is a business system originating from the U.S since early 1960s and has gained popularity and criticism in Kenya for years in the social platforms.

The network depends on direct sales to keep the production cost low,thus attracting more customers.

Distributors in this system pay a subscription fee ranging from 15k-30k,then they buy commodities at 20-25% discount and sell them to wholesalers at a marked retail price.

Distributors also earn by recruiting a network of distributors,then are compensated per the total goods sold by the network at an 2% in most companies.

Now that you are considering to start your network marketing business,here are some steps to take:

•Choose form of ownership;Like any other business,you will choose the form of  business you want.It can either be a sole proprietorship,partnership, limited liability company,S or C corporation.Each corporation comes with different ownership and management pros and cons.

•Choose company name;You will need to choose a name of your company since no MLM company will allow you to use it's name.This is done to regulate compliance with legal and ethical issues in the marketplace.

•Select Marketing Materials;You will need a strategy to connect with your customers.You can generate catalogs,direct mail or business cards to share with customers or prospects in various occasions.

•Meet zoning requirements; Even if you're a home-based business,you will need to find out whether there are zoning restrictions on your activity.

•Obtain a business license;you will need a legal approval to do business from the regional administrative body.

•Develop a tax strategy; Different corporations have different tax strategies,thus you might need to consult your tax advisor for accurate taxation strategy on your business.

Top 9 Network Marketing Companies In Kenya;
   •Alliance in Motion (AIM Global)
   •LiveGood
   •Nature’s Way
   •Forever Living
   •Nature’s Way
   •Amway
   •GNLD Kenya
   •Mary Kay Kenya
   •Young Living

          Final Word
Starting a network marketing business is challenging at times and and requires a thorough training and coaching from experts who have done it before and succeeded.Rejection is one thing to cope with for your career success in network marketing,but the effort is worth the reward.