Network Marketing is a business model that relies on strategies to attract distributors to grow their business. Network marketing is used to make money through a set of processes, which usually involves three steps: first, introduce their product to the customer, second, attract customers or business partners into the distribution network, and the third step is Use coaching and ideology to get people in their network to expand your network and increase sales. There are also informal strategies that experts do not use, but you see some people use in Cambodia: using reputation building methods through charitable activities, showing off wealth, acting as a name, etc., and posting on social media as soon as possible. They know a lot, easy to sell products. There are many forms of web marketing, but this article apamat.com offers only two types to the following readers.

1. Network Marketing with Single or Single Layer Networks

This type of network marketing is as you can see some self-created cosmetics brands in Cambodia are using this strategy to attract distributors on social media.

For example, you own a new brand and you need people to join your distribution network. A single reseller pricing target for distributors means that distributors do not have to choose a new distributor as their subgroup, which is why I use one or more classes.


This relates to the price list, which you will surely know about if you own a brand or are acting as their distributor. For example, you set your product price to $ 25 / bottle as a retail price for consumers and $ 18 / bottle as a fixed price for a distributor, with no price order based on the number of orders. Therefore, their distributors can not choose distributors to put under him, because there is no profit gap, can only sell to consumers directly. 

This type of network marketing is easy to manage because there is only one transaction between the host and the subnet, but the sales speed is slow due to the slow increase in the number of distributors, only the brand owners are the ones who find and select their distributors.

You can also set your network to two or three levels depending on the goals you want and the strategy you have devised.

2. Multi-Level Network Marketing

Unlike the first category above, multi-layer network marketing is more than two layers, involving three or more third parties and subsequently as a network. In this form, your distributor can select subgroups to serve as their reseller network based on the resale price list you set. For example, Distributor "A" is the seller of your product and he charges 100 bottles for $ 15 / bottle with a retail price of $ 25 / bottle. In order to make a profit in addition to retail, individual "A" can choose a distributor of "B" or "C" or more by reselling to these individuals at a package price of less than 100 bottles. Obviously, as you can see, they are announcing the distribution of packages for a number of different products, or so-called VIP, Gold, Diamond… distributors, etc., where these networks can earn money by recruiting subgroups to buy smaller packages. From them to resell. 

The more classes you have, the harder it will be to manage. As you can see, many new brand owners have not been able to stand on their own two feet for a number of reasons, such as lack of clear management, poor quality products, scandal of brand owners, misinformation. New brands and better strategies to compete in the market and some other reasons. A network marketing business that chooses social media as a core way to expand its network and increase sales is generally difficult to stand on for more than a year, or to put it simply, it is only a matter of time before you see the brand owner. They try to bring new products and brands to distribute to sub-groups, and some

Before you choose to use network marketing as a business model

If you are thinking of starting a business based on a network marketing strategy, you should make sure of two things: having a marketing team and understanding the rules.

With a stronger team, your network marketing business is stronger and more viable. The team will implement network marketing strategies, marketing strategies and other business strategies to accompany your network marketing business that you need to have them before starting a business.

The second point is related to the law. Using network marketing, you need to avoid the practice of fraudulent marketing methods and network scams, also known as Pyramid Schemes, which can lead to legal action. You should find out about the Consumer Protection Law passed at the National Assembly's plenary session in October 2019, which in Chapter 5, Article 20 of the law deals with the ban on pyramid sales projects in Cambodia.

If you are planning to start your own business and do not have the confidence to start a business for the first time, I recommend you to read the book "The way out of business" which is already on the billboard below. Small business owners and family businesses can also increase their capacity by reading this book.