Network marketing is a more efficient and cost effective way for a company or manufacturer to sell their products.
Products sold through network marketing tend to be of higher quality and less expensive than similar products sold through retail locations. This is because retailing is a more expensive business model compared to network marketing.
What most consumers don’t understand is the cost of sales and marketing at retail locations. They assume that if they pay $100 for a widget, that’s what it’s worth. The truth is to survive in retail your markup needs to be at least 50% or more. In other words if a store buys something for $50 they need to sell it for a minimum of $100 to pay for overhead and hopefully make a small profit. To understand why markups are so high, here’s a good article in Entrepreneur
With network marketing companies pay distributors for retailing their products. This is a win-win situation for the companies and distributors.
Instead of paying for expensive advertising, retail locations, furniture, utilities, salaries, and employee benefits, networking marketing companies pay their distributors who assume all the costs of sales and marketing.
In network marketing you need to be a user of a company’s products before you can be a ‘distributor’ or sales person for the company. This makes sense because it’s hard to sell something you don’t use personally. Imagine going into a department store and asking someone about how good a product is or how to use it. Chances are the sales rep has never used the product and is no help at all.
With Enagic®, distributors are not really distributors. They are sales reps or ‘sales agents’. This is because Enagic® sales agents don’t stock inventory and machines for resale. They simply do the marketing and submit orders directly to Enagic®. All customers buy factory direct. Sales agents get paid after every sale.
To be an Enagic® ‘distributor’, all you need is one machine. Your distributorship is included with your machine at no extra cost. This doesn’t obligate you to sell machines, but if someone sees your machine and wants one, the company will send you check. All it takes is a few sales to pay for your machine. The machines have a life expectancy of 25 years so you can continue to receive commissions year after year just by sharing water and information.
Here are some good links on network marketing from reputable sources.