Network Marketing Companies

The most common type of company in the direct selling industry is referred to as a MLM. (Multi-Level Marketing Company) or Network Marketing. There are 1000’s of companies that have used this type of distribution channel successfully. Amway NuSkin, Xango and MonaVie are just a few examples. Although there are similarities each of these companies have unique approaches and requirements to be successful. They are different from a party plan company primarily in the method of selling. Network Marketing companies focus more on the compensation plan and the opportunity to build a large network of distributors. The primary channel for sales and use of the product is internal consumption. Although network marketing companies do have retail customers the bulk of sales are done through preferred customers or distributors buying the product wholesale by way of auto-ship. Some of the largest direct sales companies on the planet are network marketing companies. It is important to understand how they work.

Members of our team have been executives in several network marketing companies from President, COO to VP of Sales.

If it makes sense for your company to use this type of distribution channel, then our DST Teamcan help determine how to design your company.