Most network marketers that have been working the business for any amount of time will
develop and exhibit expert power. Knowing and understanding the product or service builds
expert power. Knowledge of the products and services is a valuable resource and provides
power for the network marketer. Similarly, since the higher-ranking network marketers have
achieved the higher levels in the organizations, other network marketers feel they must know things and being doing the right things, so they desire to listen and learn from the high
achieving network marketers. This derived power is information power. One obtains
information power by being well informed, staying up-to-date, and using one’s knowledge to
persuade others.
The network marketing organization uses reward and coercive methods of power. This is
apparent in the rank structure, promotions, and rewards offered for performance. Individual
network marketers also use rewards and coercive methods within their downline to help
manage and motivate the downline. The network marketer may develop competitions within
the downline to drive sales performance. Rewards are offered for downline that recruits the
most new network marketers in a specified timeframe.