Tweamster's Blog

Word of Mouth | November 29, 2010

Why Is It Called Network Marketing?

Network marketing is called network marketing because we market through a network.

By utilizing our networks, we’re bringing customers, customer gatherers, people who get other people interested in the company, and market exposure to their company and products.

By doing this, they make it possible for someone to start with no business experience and yet have the potential to become very comfortable, and even wealthy by learning on the job and applying what they learn.

Why Do They Do This?

With the use of our networks, the company can get lots of exposure, lots of customers, and lots of profits (if they do it right).

By so doing, they eliminate most of the expense of PR firms, marketing agencies, branding agencies, market research firms, focus groups, etc.

Then they can take all that expense that they’re eliminating and pay that money to the field of sales reps and marketers that are bringing the customers to the company.

The more people you bring to the company who gather customers, and the more customers you bring to the company, and the more leadership you provide, the more handsomely you’re going to be rewarded.

Why Does This Work?

Because of the power of word of mouth. Here’s what one writer has to say about word of mouth: “In our business lives, positive word of mouth generates referrals and referrals generate business. So, word of mouth is one of the most important marketing tools that can contribute to our success. What could be better than a customer mentioning how pleased they were with a service you provided to others who may need this service? Free advertising… that’s what word of mouth is.”

Here’s another: “Media Guerilla points to interesting research from Intelliseek that finds that consumers are ‘50% more likely to be influenced by word-of-mouth recommendations from their peers than by radio/TV ads.’ ”

And finally, “Even more important than its credibility, reach, speed and ability to break through the clutter is its power to get people to act. In study after study with almost every category of buyer, word of mouth has been shown to be what is known as the proximal cause of purchase – the most recent thing that happened before purchase. In other words, the purchase trigger. People tend to make major purchases on the advice of trusted peers or experts.”

What Role Does Advertising Play?

The whole role of advertising in network marketing could be called finding new launch points for word of mouth. In other words, you advertise to find someone who will start a word-of-mouth campaign among his/her friends, family, acquaintances and business associates.

If you’re good at networking and getting referrals, you may never need to resort to advertising, but that’s the subject of another article.

Helpful Information

To learn more about the brilliance of the how you get paid for your word-of-mouth avalanches, check out Brilliant Compensation.

To learn more about how to determine if a company is a good candidate for word of mouth to catch on, go to and sign up for the “7 Days, 7 Insider Secrets” email newsletter.


In the end, all business operations can be reduced to three words: people, product and profits. Unless you’ve got a good team, you can’t do much with the other two. – Lee Iacocca



  1. I wish to thank you for your comments on my blog and to also say that your blog is outstanding , very informative !

    Comment by mck5 — December 1, 2010 @ 9:58 am

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