Network marketing (also known as multilevel marketing) is an extremely popular business model these days for products of all kinds. In fact, there are those who think network marketing will be the dominant form of product sales and distribution in the not too distant future. Why not? The model significantly reduces the direct cost of product promotion from traditional methods of advertising, and puts a vast sales network in play on a company's behalf. At the same time, it provides motivated individuals with an opportunity to supplement their regular income, or even replace and go well beyond it if they perform.

There are many different types of network marketing programs, and a vast array of products available through them. Some are clearly better than others. At the same time, some programs have restrictions on an individual's ability to participate in other programs (competitive or otherwise). That being the case, it is important when making the decision to enter the network marketing realm that the right product offering be selected. There are three things to consider in that regard.

Repeat Sales = Residual Income The big draw of network marketing from the perspective of one becoming a representative is that it can provide a stream of residual income with little to no sustained direct product sales effort. This residual income is in the form of commissions earned on sales to one's direct customers and those in her/his network. Of course, commissions are only earned when someone actually buys something. In a program which is based on a single purchase type of product offering (as is the case with many "affiliate” programs), the whole focus becomes recruiting new representatives for your downline as that is really the only way to keep generating sales, and thereby residual income. That can be hard to sustain, though.

A better situation is dealing with products which are going to mean repeat buyers. These are consumable items used all the time. The bigger, more well-known network marketing programs generally have this covered by offering products like vitamin supplements and household goods (soap, paper products, etc.). By providing things people purchase on a regular basis, they produce a steady stream of sales, and therefore commissions.

Fewer Customer Buying Decisions is Better Products which require the customer to make just a single buying decision are generally going to be better than those which demand one to consciously make repeat purchases. Consider the case of a consumer product like soap as an example. When one needs more soap, a new buying decision is required. That soap could be purchased through the network marketing program, but that customer could just as easily stop by the local store on the way home from work.

Now consider a product which comes in the form of a monthly service or subscription - phone service, for example. These kinds of products generate repeat sales essentially automatically. In fact, the customer would actually have to make a conscious decision to stop purchasing (cancel the phone service and/or switch to another). That's the opposite of what happens with soap and other consumable physical products as noted above. The result is that customers of these kinds of products are more likely to be long-term sources of sales revenue, and therefore commissions.

The Product Offer Must Keep up with the Times No matter what kind of product offering you go with, the provider must be able to stay up-to-date. This is especially important with anything technical. As you know, the pace of change in technology is rapid, so it is critical that the provider of the products and/or services distributed through the network be able to keep pace with the changes.

Carrying the phone service example above forward, it would be a bad situation to be tied in with a network marketing program where the product offering was strictly traditional land-line service. Consider the growth and expansion of mobile and digital phone services, not to mention other telecommunications offerings. One could easily see customers falling by the wayside as they switch over to the more modern products. For that reason, it is important to see how well the network marketing program being considered does in keeping its product mix as fresh as possible.

Network marketing can be a very fulfilling venture, both financially and personally, with the appropriate effort and focus. As with any venture, success is never a sure thing. It can, however, be significantly improved by selecting the network marketing program with the right product offerings.