Network marketing is a type of marketing of products or services based on communication marketing where the consumer invites other users to buy the product in return for a commission, and also gets the user a percentage of the commission in case the customers sell the product to others so that the consumer is at the top of the pyramid and has a network of customers Subscribers, or a number of customers who have made purchases through them.
This method has been used since the middle of the 20th century, and has been used by some companies because of the high sales of its products and the cost of less.
This method has recently become a way to make profits and is no longer just a means of marketing, which has become the focus of criticism of many because of the addition of products worthless or excess of their original value, and the user uses to buy not for the purpose of benefiting from them but to seek for profit, Which makes users at the top of the pyramid are making fantastic profits while the larger base of customers in this way may not gain any profit in the end.
Unlawful marketing chains
The most prominent points and illegal activities directed at pyramid marketing companies are banned in many countries, including the United States. [3]
It requires payment of the fee or purchase of the product to start marketing, while the marketer is not required to buy the product or to pay registration fees anywhere in the world.
Collecting commissions is the result of recruiting new marketers who buy products or pay registration fees. This is the real and only way of profit. Sometimes in the illegal marketing pyramids you will find that promoters are asking you to borrow money. They will write you big things and you will hear bigger words, but you will not see more than words.
The product is sold at an unreasonable price, or is ambiguous or changeable later, and is a way to enter the pyramid only.
Promises of wealth and very high incomes in a short period of time, while in regular marketing will win through sales only and no one will make you a lot of profits.
Inviting close friends, trustees and relatives is one of the basics of illegal pyramid marketing, while in marketing it does not require anyone who trusts to sell the product, but as long as the product is real why can not we sell it to anyone?
There is no direct sale or is covered in disguise and does not constitute an acceptable percentage of sales and sales mostly for marketers only within the marketing pyramid. In the legal marketing chains, everyone sells direct sales, not only sales to marketers and recruitment of marketers.
Commissions depend on stopping those who are dunk in the pyramid and need to recruit additional marketers to complete their balancing process in the right and left of the pyramid (ie you have to make an extra effort instead of the discontinued marketer) and other unreasonable conditions for profit. The products will win even if no one in the chain of marketing, or one person or twenty people.
There is no end to pyramid marketing and personal pyramid collapses by stopping any member of the Donk, regardless of the level of the class in which he or the whole commission system is stopped as a result of the network owners escape or arrest after it became clear that the whole process is a circle to raise money for a group of people and not a real marketing process and also after Discovery of the goods order and its authenticity.
.Network marketing is a nascent network, and the first to do this type of network marketing was a company called California Vitamins (1954), a company that originated in the United States where it specialized in cosmetics, cleaning and nutritional supplements.