Network Marketing

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.

BREAKING DOWN '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.

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RELATED FAQS
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    Understand when it is appropriate to use the term "always be closing," and learn why a salesperson should want to embrace ... Read Answer >>
  3. Why is the strategy of 'always be closing' (ABC) popular in retail sales?

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    Gather information and keep in touch through networking without bombarding clients or you may risk losing a client in a challenging ... Read Answer >>
  5. How can I find an investment club in my area?

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