Industry

What Is Network Marketing?

Network marketing is a business model that depends on person-to-person sales by independent representatives, often working from home. A network marketing business may require you to build a network of business partners or salespeople to assist with lead generation and closing sales.

There are many reputable network marketing operations, but some have been denounced as pyramid schemes. The latter may focus less on sales to consumers than on the recruitment of salespeople who may be required to pay upfront for expensive starter kits.

KEY TAKEAWAYS

Network marketing appeals to people with high energy and strong sales skills, who can build a profitable business with a modest investment. A network marketing business can be a single-tier program, whereby you sell the products, or multi-tier, where you also recruit additional salespeople. Beware of network marketing companies that create many tiers of salespeople or require you to purchase expensive products or training material up-front, Make sure to thoroughly research the company before you join.