What Is Network Marketing?

Updated: September 13, 2022
Network marketing is a type of business model in which a company distributes its products and services through a network of independent contractors. These contractors, also known as "distributors" or "salespeople," are usually compensated not only for the products they sell, but also for the sales of the other contractors they recruit.
Detailed answer:

Network marketing is a business model in which products or services are sold by distributors, also known as network marketers. Network marketing companies typically use direct selling, multi-level marketing, and referral marketing.

Network marketing is often referred to as multi-level marketing (MLM) because it typically involves a hierarchical structure in which people at the top of the pyramid recruit others to sell products or services beneath them. The majority of participants in MLM are women and do not use the term “network marketing” to describe themselves but rather direct selling or MLM.

People who join MLM companies can start at any level of the company and work their way up. This is called “working your way up the pyramid.” If you have a large network of friends who are willing to buy from you, you can make money by starting your own MLM business or becoming an independent distributor for an existing one.

Network marketing is a popular way to earn income online and offline, and it can be an effective way to supplement or even replace a traditional job. It’s not uncommon for people who work full-time at their regular jobs to decide to become network marketers with their free time after discovering how much money they can make from home with these programs.

What Is Network Marketing?. (2022, Sep 13). Retrieved from https://graduateway.com/qa/what-is-network-marketing/