What is Network Marketing?



Network Marketing is a type of direct selling where distributors are compensated in both selling the products and the business opportunity. This encourages them to build and maintain there own network distributors, each with their own retail customers. It comes with many aliases: MLM, Multilevel Marketing, Word of Mouth Marketing, Multiplication-of-Efforts Marketing, among others. The distributors, who are independent contractors and not employees of the company's customers base as well as the marketing and sales arm for a company's product or services and business opportunity. They are compensated in two ways:

1. When the sell products.
2. When their recruits sell products.

Merely recruiting new distributors into the network  no compensation. The term multi-level marketing describes the various levels of recruits qualified for compensation in a company by independent distributors even if they are not directly involved in the sale of a product or service.

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