Network Marketing

AAA

DEFINITION of 'Network Marketing'

A sales strategy in which a salesperson attends meetings of organizations whose members are likely to be interested in a particular product or service in order to develop a book of business. The three major components of network marketing involve prospecting (finding sources of potential customers), following up with inquiries from interested parties, and selling the good or service to the prospect. Once prospects are cultivated, the salesperson will try to use his or her relationships with the prospect to get in contact with other individuals that the prospect might know.

INVESTOPEDIA EXPLAINS 'Network Marketing'

Salespeople may visit organizations related to things that they have a common interest in. Or they may visit organizations that they think will contain prospects but that are of no interest to them personally. For example, a financial advisor may visit a local meeting of a retired railroad worker social club in order to determine if any of its members could be considered potential clients. Or a real estate agent may attend an investment real estate club because he is both interested in investment real estate and the club offers contact with potential clients.

RELATED TERMS
  1. Networking

    A process that fosters the exchange of information and ideas ...
  2. Soft Sell

    Advertising and sales practices denoted by subtle language and ...
  3. Hard Sell

    Advertising and sales practices denoted by aggressive or forceful ...
  4. Sales Meeting

    A gathering in which a product or service is being discussed, ...
  5. Always Be Closing - ABC

    Retail jargon used to describe a sales strategy in which a salesperson ...
  6. Commission

    A service charge assessed by a broker or investment advisor in ...
Related Articles
  1. Fundamental Analysis

    Great Expectations: Forecasting Sales Growth

    Predicting sales growth can be something of a black art, unless you ask the right questions.
  2. Fundamental Analysis

    Measuring Company Efficiency

    Three useful indicators for measuring a retail company's efficiency are its inventory turnaround times, its receivables and its collection period.
  3. Personal Finance

    4 Dishonest Broker Tactics And How To Avoid Them

    Protecting yourself from unscrupulous practices means knowing how to spot them.
  4. Professionals

    Sales Director Career Provides Daily Challenge

    Find out what you need to do to close the deal on this investment management position.
  5. Investing

    Doing More With Less: The Sales-Per-Employee Ratio

    If used properly, this ratio can give you insight into a company's productivity and financial health.
  6. Professionals

    The Marketing Director's Pitch

    Are your shoulder's wide enough to carry a company's reputation?
  7. Economics

    What types of consumer goods demonstrate the price elasticity of demand?

    Learn how the price elasticity of demand is more sensitive for some types of consumer goods than others, and see what factors most influence elasticity.
  8. Fundamental Analysis

    Google Ads Vs. Facebook Ads

    Universal access to the internet through smartphones, tablets and computers has driven the success of numerous companies. Most notably, Google and Facebook have witnessed staggering growth as ...
  9. Entrepreneurship

    How does a customer base dictate goodwill?

    Find out how a customer base dictates the value of the goodwill by providing a ready market for its products and spreading the word about the firm.
  10. Entrepreneurship

    How do companies like ClickBank help websites make money?

    Find out how sites such as ClickBank help websites make money by offering the opportunity for vendors and affiliates to promote websites and products.

You May Also Like

Hot Definitions
  1. Multiplier Effect

    The expansion of a country's money supply that results from banks being able to lend. The size of the multiplier effect depends ...
  2. Command Economy

    A system where the government, rather than the free market, determines what goods should be produced, how much should be ...
  3. Prospectus

    A formal legal document, which is required by and filed with the Securities and Exchange Commission, that provides details ...
  4. Treasury Bond - T-Bond

    A marketable, fixed-interest U.S. government debt security with a maturity of more than 10 years. Treasury bonds make interest ...
  5. Weight Of Ice, Snow Or Sleet Insurance

    Financial protection against damage caused to property by winter weather specifically, damage caused if a roof caves in because ...
  6. Weather Insurance

    A type of protection against a financial loss that may be incurred because of rain, snow, storms, wind, fog, undesirable ...
Trading Center