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Network marketing is not something new to the industry, it has been used for years by both large and small businesses looking to expand their customer outreach, by relying on the "freelance sales worker".
Companies such as Mary-Kay cosmetics and Lia Sophia jewelry have done this in the past by sponsoring housewives to throw mixers among their social circles, in which, the organizations products would be sold at. In return for the sales made at the event, the company then compensates the "freelance sales" housewife for her efforts.
This same concept has now become more relevant as social media has become the main tool for product exposure. Organizations look to social media influencers with large followings to sponsor their products. By compensating the influencer to use and support their products, the organization will establish credibility within their target market.
This also does the job of what direct mail used to, by targeting specific influencers, companies can target specific markets and play into their interests. There is no issue of spam mailing, or wasted paper and postage for direct mailing.
The use of network marketing in the modern organization covers in one transaction, a wide range of the marketing and advertising spectrum that used to need several business divisions to develop separately. This method cuts down on costs, time, and research.
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