What is Relationship and Referral Marketing?

Network Marketing, also known as Relationship and referral marketing is exactly what it reads. It is all about developing strong relationships with people and referring people to your marketed products and services. It is also about using the relationships you currently have in order to create the ultimate business for you. This industry is also known as network marketing or multi-level marketing.

Here are the basic principles to relationship and referral marketing:

  • It is a business model in which you acquire customers to build both residual income and fast track bonuses
  • It is a business model that puts you in a position to leverage your time, efforts, and money by inviting and sponsoring more like-minded people into your team so they can also have the opportunity to make money whilst making you money also
  • The aim of the game is to create a real customer base and invite business-minded leaders into your team so that you can both benefit grow a residual empire

This is the business model in the basic sense. This type of business is for people who want to develop their entrepreneurial skills, personal empowerment, and personal power. It is also an opportunity to develop strong leadership skills and presentation skills.

You may be wondering, can’t I just make money by myself and not sponsor anyone?

That depends on the compensation plan that has been created. The fact of the matter is it profits both the economy, businesses and other people who need the opportunity if the system is followed. You can make money by yourself, however, it may not be a lot residual or per sale, or it may be temporarily based on the fast track bonuses you have.

Do my team and I have to get customers?

Put it this way, Asda has many stores across the nation, but if their shutters are closed preventing from customers to even have a look, wouldn’t you agree that they will not make any money? I’ll save you from thinking… No they won’t. Normally your compensation plan can allow you to calculate roughly the minimum amount of customers you would need in order to do well in your relationship and referral marketing company. However why just settle for the minimum!

How much should I pay to enroll in a network marketing company?

It should not be thousands of pounds, it should be a very low investment. However, there are some companies that have product packs which benefit yourself, your sponsor, and the company in the chance to make money. This will make the cost higher if you decide to pay them all together, yet it should still not be in the thousands. It’s easy to see a product pack as expensive, however as time goes on you soon realize it is a great investment to have.

How do I know if my company is legitimate?

It’s very simple, there are many companies that are regulated by independent bodies such as the DSA (Direct Selling Association), and Seldia. The policies and procedures developed by each company should incorporate some of the policies displayed by these independent governing bodies. Check the companies website and try to understand what the company does, and objectively and analytically understand both the positives and negatives of that company.

I have heard some very negative things about some companies and network marketing in general, I’m not sure if it’s for me.

Network marketing is not a problem in itself, the industry has taken a hit based on particular individuals. However, the focus is on the individuals, not network marketing. People make the industry cheap and bad sounding. The solution is simple, be part of a person’s team that you trust, read the information provided accurately, read the compensation plan, and ask the people part of the business any question you so wish to. Remember they are also human too so they may not know all the answers, however, create a balance to sense whether they are being genuine or fake. It can be a fine line at times, most of the time the IBO (Independent Business Owner) wants you to be comfortable, but also want to heighten the environment to allow you to make an informed decision; hopefully in both your favours.

Why is it important to know the co-founders?

It may be difficult to speak to the co-founders face to face depending on how big the company is, however, the history of the cofounders and the length of time they have been part of the business will give you an idea of the integrity of these co-founders. That will allow you to understand what direction the company is going.

What should I look out for in the products and services?

The products and/or services should have a real market and should create real value. You should be able to sell these to various customers. It is good to be a product of the product and try them for yourselves so you can be your own testimonial. It is very important to do this, however, you should not only be your own customer. There will also be one or two products and/or services that really stand out from the rest, which is enough to make the business work. Do not try to understand everything about a product or service, understand what is required and use the companies marketing and advertising tools to help you explain it to your customers. Many people get analysis paralyze and try to learn everything, yet take no action. Don’t let this be you.

What about training and support?

It is pivotal that there are training and support provided by the company, in addition to the person who sponsored you. It should be in their best interests that you know exactly what you need to do in order to be successful because it shall also make them successful. If your upline leaves for whatever reason, consult your next person in line. If this is difficult go to a local meeting and find someone to speak to in order to get the training you need. There will also be training online, via your back office or online portal, in addition to the use of social media.

Do you really make money?

The short answer is yes! Only if you put in the work, hence why you develop so many business savvy skills on the way. If you go to the gym to chill and not workout, you will forever remain fat. However, if you go in with a 6-12 week plan, doing the workouts properly, pushing yourself when need be, in addition doing the extra like eating well, you will have a body to die for; this industry is the same. Relationship and referral marketing is not easy but at the same time doesn’t have to be difficult. Your mindset, identifying the right leaders, and the current market will determine the speed of how quickly you make money. The speed of implementation is key in this game, not getting hit by negativities and Nos helps in the game, for whatever does not kill you makes you stronger!


Just to finish off relationship and referral marketing is a beautiful business when done properly, it makes $182,000,000,000 in revenue, and there are over 100,000,000 network marketers worldwide. It is an opportunity to develop great core skills that no other industry will teach you. There is an unlimited earning potential and the chance to become financially free. It is a business where you work for yourself, but never by yourself.

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