1.

Rationale of the Study

Fundamental changes during the past century have had a staggering

effect on every aspect of human life. Management systems and commercial

relationships are some of the most important factors in advancement of

technology, information and methods of work that have experienced

fundamental transformation and evolution. The marketing system with daily

innovation in creating new and modern methods, have created and provided

a new environment for marketing mix (product, price, distribution and

promotion) of a variety of products or services to the consumer’s market.

Network marketing is a modern method of selling products with the use of

social communication tools and networks that promotes its products with the

use of verbal marketing that has eliminated traditional intermediaries and no

longer requires expensive advertisement procedures to achieve its goals.

2. Setting of the Study

The research will be conducted in the towns of Alitagtag, Taal and Lemery

since network marketing businesses are abundant in these towns. Network

marketing business agents of the said business were the respondents of the

study.

3. Definition of Terms

For better understanding of the study, the following terms are defined

conceptually:

Commercial relationships go much deeper than the customer snapshot

you’ll find in your sales or billing system alone. It represents a complete

understanding of the most current terms, entitlements and commitments you have

in place with a customer.

Commission is a formal written warrant granting the power to perform

various acts or duties.

Direct Selling refers to selling products directly to the consumer in a non-

retail environment.

A Distributor is an entity that buys noncompeting products or product lines,

warehouses them, and resells them to retailers or direct to the end users or

customers.

Downline refers to the members you have recruited or who

have joined the program after you did and whose sales or referrals also generate

income for you.

An intermediary is a firm or person (such as a broker or consultant) who

acts as a mediator on a link between parties to a business deal, investment

decision, negotiation, etc. In money markets, for example, banks act as

intermediaries between depositors seeking interest income and borrowers seeking

debt capital. Intermediaries usually specialize in specific areas, and serve as a

conduit for market and other types of information. It is also called a middleman.

Marketing refers to activities undertaken by a company to promote the

buying or selling of a product or service. Marketing includes advertising, selling, and

delivering products to consumers or other businesses.

 Multilevel Marketing (MLM) is a system for selling goods or services

through a network of distributors. Multilevel marketing is also referred to as

Network Marketing or Direct Sales.

Network Marketing Business is a business model that depends on person-

to-person sales by independent representatives, often working from home. It is a

business model in which a distributor network is needed to build the business.

Networking is a socioeconomic business activity by which business people

and entrepreneurs meet to form business relationships and to recognize, create, or

act upon business opportunities, share information and seek potential partners for

ventures.

Salespeople are persons employed to sell goods or services.

Terms of employment are the responsibilities and benefits of a job as

agreed upon by an employer and employee at the time of hiring.

Upline is the person you are mentored by and connected to for any specific

type of bonus.