Network marketing, also known as multi-level marketing (MLM) or pyramid selling, is a business model that relies on individuals harnessing their personal networks to grow a business or sell a product. In network marketing, independent representatives sell products or services to their personal network, and they earn a commission on the sales they make. They can also earn additional income by recruiting new representatives to join the network and earn commissions on their sales.
Some key features of network marketing include:
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Person-to-person sales: Network marketing relies on person-to-person sales by independent representatives, often working from home.
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High energy and strong sales skills: Network marketing appeals to people with high energy and strong sales skills, who can build a profitable business with a modest investment.
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Single-tier or multi-tier program: A network marketing business can be a single-tier program, whereby you sell the products, or multi-tier, where you also recruit additional salespeople.
It is important to note that network marketing is a controversial marketing strategy, and some people view it as a pyramid scheme. Pyramid schemes are illegal and involve making money primarily through recruiting new members rather than selling products or services. Therefore, it is important to thoroughly research a network marketing company before joining to ensure that it is a legitimate business opportunity.
