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What is Network Marketing?

Network marketing is often referred to by many names such as multi-level marketing (MLM), direct sales, and home-based business.

Although the exact creation of the business model is often disputed, it’s believed that network marketing has been in existence since the 1920s.

The structure and compensation plan ultimately is dependent on the individual company, however, most companies follow a similar approach.

The company’s products or services are sold through independent representatives of the company.

These independent representatives are also referred to by many names such as reps, distributors, independent business owners, and consultants to name a few.

Representatives can either choose to build a customer base that solely consumes the product or uses the service, or they can also choose to build a team of other representatives that build the business in addition to building a customer base.

These people are your team are known as a downline.

Despite what many people believe…
Network marketing is NOT a pyramid scheme.
Those that don’t understand how to explain it or hound their friends and family with the “next best opportunity” can definitely create some skeptics that instantly think “pyramid!” – No question.
But again, this is just because of improper experience and training of the reps, not because of the actual model.
Network marketing is perfectly legitimate, legal and in fact, endorsed by some of the biggest names in finance.
Most people wonder if network marketing is a pyramid scheme because of two things.
The structure is shaped like a pyramid
Can you think of one corporate structure or organizational chart that isn’t shaped like a pyramid?
It’s a common misconception that people have because of the stigma that salesy, untrained network marketers have given the profession with their approach.
Almost anything out there that has a company structure is shaped like a pyramid in some way, shape or form, and it has absolutely NOTHING to do with the legitimacy of the model.
To build a network marketing business YOU HAVE TO BE TOUGH.
If you can…
Not require acceptance or approval from friends and family Commit to attend your company events, work on your skills and regularly ask people if they are open to your product/service/opportunity Have a 5-year plan vs. a 30 day or less plan…
Then network marketing is a great option.