Network Marketing, also called Direct Sales and Multilevel Marketing is a marketing structure that home based businesses have built themselves on. In this marketing structure, revenues are paid out for promoting the company and product sales. In this structure promoters, distributors, individual business owners are compensated for not only their sales but also the sales of the members they have brought into the sales force.
Basically we are paid to “advertise” and “help get the word out” about companies & products.
Big name players have come out and supported this style of business – Robert Kiyosaki is quoted saying “If I had to do it all over again, rather
than build an old style type of business, I would have started building a
network marketing business.” and Donald Trump has opened “The Trump Network” – what a great validation for the “industry”. It has just reinforced my love for this style of earning a living!
Also, this kind of structure is not unlike what internet marketers are doing in their “affiliate marketing programs” today.
It is true, years and years ago this type of marketing brought on a lot of bad press and lawsuits. It was deemed Pyramid Schemes – there were several companies not being so honest, but since those practices were brought to the front of the line, laws have been past and companies are under strict scrutiny all to protect US the business owners.
I hope this helps explain a bit about Network Marketing!