Some characteristics of network marketing are:
- It depends on personal selling and expands distribution throught networks.
- Here each seller has to take personal responsibility for achieving sales.
- You often see wide differences in sales results because sellers vary in their skills and effort.
- Success in selling usually depends more on individual ability than on how much money is invested.
- Sellers need to spend a considerable amount of time if they want to achieve good results.
- Because of the way the system works, products can be available in many places without physical outlets.
- As more people become involved, market coverage tends to increase gradually.
- New regions can be entered without making heavy investments in buildings or infrastructure.
- Operating costs generally stay lower because effort is shared among many participants.