What is Digital Network Marketing?

Digital Network Marketing refers to the use of digital channels, such as social media, email, and websites, to promote and sell products or services through a network of individuals who are incentivized to promote the products or services to their own networks. It is also called as MLM (Multi-level marketing) which is a business model that allows individuals to earn commissions on the sales made by their own network of recruits, as well as the sales made by their recruits’ networks. 

How it works 

Individuals who participate in Digital Network Marketing are called “distributors” or “affiliates.” They are provided with a unique link or code that they can share with their own networks to promote the products or services. When someone makes a purchase through the link or code, the distributor earns a commission. Additionally, distributors may also earn commissions on the sales made by their recruits’ networks. 

Popular Platforms

The most popular platforms for Marketing include social media channels like Facebook, Instagram, YouTube, and TikTok, as well as personal websites and blogs. 

Objectives of Network Marketing 

The objectives of Network Marketing can vary depending on the specific company and its products or services, but some common goals include: 

  • Increased Sales: The primary objective of network marketing is to increase sales of the company’s products or services. This accomplished by recruiting a large network of individuals who promote the products or services to their own networks. 
  • Brand Awareness: Network marketing can also be used as a tool to increase brand awareness and build the reputation of a company. By recruiting a large network of individuals who are enthusiastic about the products or services, a company can increase its visibility and reach a larger audience. 
  • Cost-effective: Network marketing is a cost-effective way for companies to expand their reach and increase sales. By relying on individuals to promote the products or services, rather than traditional advertising methods, companies can save money on marketing expenses. 
  • Recruiting: Network marketing used as a way to recruit new employees or business partners. By identifying individuals who are successful in promoting the products or services, a company can recruit them to become a part of the company. 
  • Customer Relationship: Network marketing can help companies to build a relationship with their customers. By having direct access to the customers through their network, companies can get feedback, testimonials, and understand their needs and preferences more effectively. 

Types of digital Network Marketing 

There are several different types of digital network marketing, including: 

  • Affiliate marketing: In this type of digital network marketing, individuals, called “affiliates,” promote a company’s products or services through a unique link or code. When someone makes a purchase through the link or code, the affiliate earns a commission. 
  • Multi-level marketing (MLM): In this type of digital network marketing, individuals, called “distributors,” earn commissions not only on the sales they make, but also on the sales made by their recruits and their recruits’ recruits. This creates a hierarchical structure where individuals can earn commissions on multiple levels. 
  • Direct Sales: In this type of digital network marketing, individuals sell products or services directly to consumers, often through home parties or other in-person events. They also use digital platforms and social media to promote their products and recruit new members to their team. 
  • Social Selling: In this type of digital network marketing, individuals use social media platforms such as Facebook, Instagram, and LinkedIn, to promote products or services to their own network of friends, family, and followers. They also use these platforms to recruit new members to their team. 
  • Influencer Marketing: In this type of digital network marketing, individuals with a large following on social media platforms, called “influencers,” promote a company’s products or services to their followers. They may also use their influence to recruit new members to their team. 
  • Referral Marketing: In this type of digital network marketing, individuals earn a commission or a reward for referring friends, family, or followers to a company’s products or services. The referral tracked by a referral link, code or a referral program. 

Note: It is important to research and understand the specific terms, conditions and legal requirements of any digital network marketing program you are considering joining to ensure that it is legitimate and legal in your area. 

Digital Network Marketing vs Digital Marketing 

Digital Network Marketing and Digital Marketing are similar in that they both use digital channels to promote products or services. However, there are some key differences between the two: 

  • Structure: Digital Network Marketing relies on a hierarchical structure, where individuals earn commissions not only on their own sales, but also on the sales made by their recruits and their recruits’ recruits. In contrast, Digital Marketing typically involves a one-to-many structure, where a company promotes its products or services to a large audience through various digital channels. 
  • Compensation: Digital Network Marketing often involves a compensation plan that rewards individuals for their own sales and the sales made by their recruits. In contrast, Digital Marketing typically involves a pay-per-click or pay-per-impression model, where a company pays for ads to be shown to a targeted audience. 
  • Target audience: Digital Network Marketing often focused on recruiting individuals to promote products or services to their own networks. In contrast, Digital Marketing is focused on reaching a large audience through various digital channels, such as social media, email, and classified websites. 
  • Legal concerns: Digital Network Marketing is legal, but it has been subject to regulatory scrutiny and criticism in some countries. In contrast, Digital Marketing is generally considered to be legal and is widely used by businesses of all sizes. 
  • Goals: Digital Network Marketing goal is to increase sales of the company’s products or services through a network of individuals who take incentive to promote the products or services to their own networks. On the other hand, Digital Marketing goal is to increase brand awareness, reach a larger audience, and drive more traffic to a website, or increase the conversion rate. 

Overall, Digital Network Marketing is a specific type of digital marketing that utilizes the network to reach the audience and make sales, while digital marketing is a broader term that includes a variety of strategies and techniques for promoting products or services online. 

FAQs 

What should we do in Digital Network Marketing? 

When participating in digital network marketing, there are several things that you can do to be successful: 

  1. Understand the products or services: It’s important to have a clear understanding of the products or services that you will be promoting in order to effectively communicate their value to others. 
  1. Build a network: One of the key elements of network marketing is building a network of individuals who are interested in the products or services. This can be done through social media, email marketing, and other digital channels. 
  1. Learn digital marketing skills: To be successful in digital network marketing, you should have a good understanding of digital marketing techniques such as search engine optimization (SEO), pay-per-click (PPC) advertising, and social media marketing. 
  1. Create engaging content: It’s important to create engaging content that will interest and inspire your network to take action. This can include blog posts, videos, infographics, and other types of content that demonstrate the value of the products or services you are promoting. 
  1. Use analytics: Use analytics tools to track your progress and measure the effectiveness of your digital network marketing efforts. This will help you to identify what is working and what isn’t, and make adjustments as needed. 
  1. Stay compliant: Make sure you follow the company’s guidelines, terms and conditions, and comply with the local laws and regulations. 
  1. Be Consistent: Be consistent in your efforts and stay committed to building your network and promoting the products or services. Success in network marketing takes time and effort. 
  1. Keep learning: Stay up to date with the latest trends and best practices in marketing. Join groups, attend webinars, and read industry publications to stay informed and improve your skills. 

What are the 7 tips for Network Marketing? 

  1. Define your target market: Clearly define your target market and tailor your marketing efforts to reach them. Understand their needs, wants, and pain points. 
  2. Build relationships: Network marketing is all about building relationships with potential customers and team members. Take the time to get to know people and build trust and credibility. 
  3. Be a good listener: Be a good listener and pay attention to the needs and concerns of your potential customers and team members. This will help you to better understand their needs and tailor your approach accordingly. 
  4. Be authentic: Be authentic and genuine in your interactions with others. People can tell when you’re not being sincere, and it will damage your credibility. 
  5. Be persistent: Network marketing can be challenging, and it takes time and effort to build a successful business. Be persistent and stay focused on your goals, even when faced with setbacks and challenges. 
  6. Provide value: Provide value to your customers and team members by educating them about the products or services you’re promoting, and by sharing helpful information and resources. 
  7. Continuously educate yourself: Stay informed about the latest industry trends, best practices, and marketing strategies. Continuously educate yourself to improve your skills and knowledge. 

These tips should be considered as a general guidance, and you may need to adapt them to the specific company, products or services you’re promoting. 

Which platform is best for Digital Network Marketing? 

The best platform for digital network marketing will depend on the specific products or services being promoted and the target audience. However, some popular platforms for marketing include: 

  • Social media: Platforms like Facebook, Instagram, YouTube, and TikTok are popular choices for digital network marketing. They allow individuals to connect with a large audience, share content, and promote products or services. 
  • Email marketing: Email marketing is another effective way to reach potential customers and promote products or services. It allows individuals to build a list of contacts and send targeted marketing messages. 
  • Personal websites and blogs: Personal websites and blogs can also be used for digital network marketing. These platforms allow individuals to share information about products or services, post content, and promote their business. 
  • LinkedIn: LinkedIn is a great platform for B2B marketing and recruiting professionals as team members. It allows individuals to connect with other professionals, share information about products or services, and build a professional network. 
  • Influencer Platforms: Platforms like TikTok, Instagram, YouTube, and Twitch, can be powerful tools for digital network marketing, as they allow individuals to connect with a large audience and promote products or services through influencer marketing. 

It’s important to note that the best platform for you will also depend on the industry you’re in, and the target audience you’re trying to reach. A combination of platforms may be more effective. Additionally, it’s important to test and track your results to see which platforms are most effective for your particular business. 

How can I start a career in Digital Network Marketing? 

 Here are some steps you can take to start a career in digital network marketing: 

  • Research the industry: Learn as much as you can about digital network marketing, including the different types of companies and compensation plans, as well as the legal requirements and regulations in your country.
  • Learn digital marketing skills: Develop a good understanding of digital marketing techniques such as search engine optimization (SEO), pay-per-click (PPC) advertising, social media marketing, and email marketing.
  • Find a reputable company: Look for a reputable company in the industry that aligns with your values, and that offers a product or service that you believe in.
  • Understand the compensation plan and terms: Carefully read and understand the compensation plan and terms of the company you’re considering joining. Make sure you fully understand how you’ll be compensated and what is expected of you.
  • Start building your network: Start building your network of contacts and potential customers through social media, email marketing, and other digital channels. 
  • Create engaging content: Create engaging content, such as blog posts, videos, and infographics, that demonstrate the value of the products or services you’re promoting. 
  • Continuously learn and improve: Stay informed about the latest industry trends, best practices, and marketing strategies, and continuously improve your skills and knowledge. 
  • Be compliant: Make sure you follow the company’s guidelines, terms and conditions, and comply with the local laws and regulations. 

Remember, starting a career in digital network marketing takes time and effort. Be persistent and stay focused on your goals, and you’ll be on your way to building a successful business.