Network marketing is a type of business model that is based on recruiting and selling services or products through a network of independent entrepreneurs. It is a multi-level business structure whereby independent representatives, known as “network marketers”, can earn commissions on the sales they make, as well as on the sales made by others they have recruited, or sponsored, into their own team.
In some ways, it is similar to direct sales, but unlike direct sales, it is based on an ongoing relationship with the customer, and is designed to offer some level of support to the customer base. The other key difference is that in most cases, the network marketers are not paid a salary, but rather a commission based on the sales they facilitate.
Network marketing is a relatively low-cost option for entrepreneurs to start a business, as there are typically no large outlays of initial capital required. It can be a great way to build a strong, residual income with time and effort. With the right team, mindset and strategies, network marketing can be a great way to make money and build a business.