A business model in which a distributor network is needed to build a business. Usually such business is also multilevel marketing in nature in that payout occurs at more than one level.
Network marketing is a type of business opportunity that is very popular with people looking for part time , Flexible businesses.
Some of the best known companies in America, including Avon, Mary Kay cosmetics and Tupperware etc are fall under the network marketing umbrella.
Network marketing programs features a low upfront investment usually ponly a few hundred dollars for the purchase of a product sample kit and the opportunity to sell a product line directly to friend, family, relatives, neighbors and other personal contacts. Most network marketing programs also ask participants to recruit other sales representatives. the recruits constitute a rep's down line, and their sales generate income for those above them in the program.
Things can get sticky when a network marketing network compensates participants primarily for recruiting others rather than for selling the company products or services. A network marketing system in which most of the revenue comes from recruitment may be considered an illegal pyramid scheme.
Since network marketing programs are usually from business opportunity regulation and aren't defined as franchises under state and federal franchise laws, you will need to do your own investigation before investing money.
Thank you guys this are basics to know about network marketing .
Try to choose best companies, best products, best services. Beware of scams.
Thank you guys for reading this article
On next article I will write about my experience with network marketing and about company which I prefered for this business
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