Network marketing is a process where the company establishes relationships between clients on a one-on-one basis. A company reaches out directly to the customers directly. Individuals and independent contractors do this. This is a mutually beneficial process for the company and the who ever is sending the leads to a company. The company sending the leads gets compensation for the lead and the company gets a targeted lead.
Profits rise due to direct sales. The advantage to the company offering the services is that the company need not invest any money in advertisements payment is only made for a genuine lead or an actual sale. Network marketing has attained a new level with the ease of Internet service that is currently available. Lead generation has been associated with network marketing since its inception. Lead generation is an important marketing strategy, which involves establishing contacts between the consumer (potential consumer) and business offering the product or service.
Network marketing and lead generation have basically the same end results. They are different means to the same ends. Network marketing seeks to establish relation with customer to sell the product and lead generation helps in finding and recognising the potential customers. Lead generation establishes specific steps to reaching out to the customers, which makes network marketing easier.