Network marketing polarises opinion. For some, it is a modern form of recommendation-based marketing; for others, it is a model surrounded by scepticism and assumptions. Between bold promises and justified criticism, it is often forgotten what it is fundamentally about: products, trust and personal recommendation.
In this article, we take a balanced, critical and unfiltered look at network marketing and place the model into context using RINGANA as a practical example.
What is network marketing?
Network marketing (also known as recommendation marketing or multi-level marketing) is a distribution model in which products are sold through personal recommendation rather than traditional retail channels. Customers purchase directly from the company, often through independent partners who recommend the products.
These partners receive a commission – not for recruiting people, but for actual product sales. Depending on the structure, a team may also develop over time, and a proportion of its sales can be remunerated.
What matters is this: legitimate network marketing is product-based, not member-based! This is what fundamentally distinguishes it from illegal pyramid schemes.
Why companies choose network marketing
Traditional retail does not work equally well for every product. Particularly with products that are complex, sensitive or very fresh, limitations quickly arise:
- long storage times
- multiple intermediaries
- limited room for personal consultation
- pricing pressure through retail margins
Network marketing offers a more direct route: manufacturer to customer. Advice, trust and product experience are at the centre.
Why RINGANA chose this distribution model
An important point that is often overlooked: partner-based distribution was not RINGANA’s first idea, but a consequence of the product itself.
RINGANA initially intended to sell its fresh products in pharmacies. However, this revealed a fundamental challenge:
- no synthetic preservatives
- short shelf life
- temperature-sensitive formulations
- production on demand rather than in advance
Traditional retail relies on long supply chains, storage periods and product returns. For a product designed to remain uncompromisingly fresh, this simply was not compatible.
The conclusion was clear: the supply chain had to be as short as possible!
The distribution model developed gradually in practice:
- first recommendations within personal circles
- increasing demand through word of mouth
- growing order volumes without a traditional retail structure
Not a marketing concept, but genuine demand led to the model used today. Person-based distribution was therefore not a strategic trend, but the only structure capable of:
- guaranteeing freshness
- enabling consultation
- avoiding overproduction
- conserving resources
RINGANA therefore adapted the distribution model to the product – not the product to the distribution model.
How does network marketing work at RINGANA?
RINGANA combines two elements that consciously belong together and complement each other.
- Personal recommendation and consultation
Partners recommend products based on their own experience. They advise, share knowledge and support customers in making informed choices. Recommendations arise from genuine use and personal conviction, not from scripts or sales pressure.
Depending on the situation, the partner may also place the order on behalf of the customer or assist them in doing so.
→ This is recommendation marketing.
For this consultation, support and ongoing customer care, partners receive a commission. It is based on actual product sales.
If, over time, a team of independent partners develops, a proportion of that team’s sales may also be remunerated. However, this only applies if the partner remains active and continues to recommend and advise personally. The foundation is always genuine product recommendation and sustainable collaboration – not simply recruiting people.
- Ordering and fulfilment directly via RINGANA
Whether a customer orders with or without a partner, the entire processing runs directly through RINGANA:
- orders are placed online with RINGANA
- products are freshly produced on demand
- shipping comes directly from the manufacturer
- partners do not handle payments, storage or logistics
This structure ensures freshness, transparency and fairness, and allows partners to focus on what truly matters: consultation and customer support.
In short: people recommend. RINGANA organises.
This clear separation is a key quality difference compared with many other models.
Critical aspects and why they matter
Speaking seriously about network marketing also means addressing criticism.
- Income
Network marketing does not guarantee income. Anyone who promises this is not being honest.
Income depends on:
- time invested
- commitment
- advisory competence
- consistency
At RINGANA, there is:
- a transparent compensation plan
- no obligation to meet minimum sales volumes
- no financial risk through stock purchases
However, it remains self-employment, with all its opportunities and responsibilities.
- Image and prejudice
Many negative perceptions stem from:
- questionable providers
- aggressive sales tactics
- lack of transparency
- illegal pyramid schemes
RINGANA addresses this through:
- published transparency reports
- clear codes of conduct (GC Rules)
- training rather than sales pressure
- numerous awards and sustainability recognitions
All awards, including the Austria’s Best Managed Companies Business Award 2022, 2023 and 2024, can be found here.
Is network marketing right for everyone?
No. And that is an honest answer. As important as the opportunities are, clear boundaries matter.
Network marketing suits people who:
- enjoy advising others
- value relationships
- think long term
- want to work independently
It is less suitable for those who:
- expect quick or fixed income
- do not wish to take responsibility for self-employment
- dislike communicating with people
- want to recommend products they do not use themselves
- confuse selling with pressure or persuasion
This is not a weakness of the model, but an expression of realism.
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By its very nature and design, network marketing is a strikingly fair, democratic, socially responsible system of generating wealth.
Why recommendation marketing is more relevant than ever
Traditional advertising is losing trust. People prefer to listen to:
- experiences
- recommendations
- authentic stories
Network marketing works precisely in this space – provided the products are strong.
RINGANA focuses on:
- uncompromising product quality
- freshness over mass production
- knowledge rather than sales pressure
Conclusion: Network marketing is not a promise, but a path
Network marketing is neither a miracle solution nor a scam. It is a distribution model. How well it works depends on the company, the products and the mindset of the people involved. In RINGANA’s case, this path arose from necessity: fresh products require short supply chains. Personal recommendation replaces the retail shelf.
Network marketing is not suitable for everyone, but for some it may be exactly the right path.
If you would like to explore further and understand what a partnership with RINGANA can look like in practice, you can find all relevant information in a calm and transparent format on my Become a RINGANA partner page.
