What is Network Marketing?

Network Marketing Definition

Network marketing is a direct selling business style in which salespeople promote products or services on their own time. The salespeople or agents are self-employed.

They are encouraged to recruit and train new agents by whoever recruited them. The agents they recruited are then encouraged to do the same, and so on.

Network marketing is divided into several categories.


Network marketing is divided into three distinct groups. These categories are similar in that they encourage people to run their enterprises through their personal networks.

Direct marketing

Network marketing is divided into three distinct groups. These categories are similar in that they encourage people to run their enterprises through their personal networks.

Affiliate marketing

Network marketing is divided into three distinct groups.

These categories are similar in that they encourage people to run their enterprises through their personal networks.

Multi-level marketing

MLM is a distribution-based marketing network that incorporates direct sales as well as a downline of distributors.

Because of their resemblance to pyramid schemes, these home companies get a lot of bad press.

Direct Sales: Rather than using a well-defined distribution channel, network marketing organisations promote and sell their products directly to clients. The participants are assigned the task of selling the things, and for each sale they make, they are paid a commission.

Self-employed entrepreneurs (IBO): Participants are referred to as IBOs because they operate as if they are running their own business.

Distributor: Rather than salespeople, most multi-level marketing businesses refer to their members as distributors.

The distributor’s downline is made up of members recruited by the distributor or fresh recruits registered by these members. Every distributor reaps the benefits of their downline.

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