About Network Marketing
Network Marketing or Multi-Level Marketing (MLM) is a business concept which allows the parent multi level marketing company to market and distribute their products, or/and service, directly to the consumer by direct selling and relationship referral.
According to the WFDSA (World Federation of Direct Selling Associations), direct selling is defined, as the face-to-face marketing of products and services directly to consumers in a non permanent, retail location.
Independent, unsalaried sales Consultants represent the company and make commission based on the volume of sales. The sales consultants often build their own organisation by recruiting a downline of other independent distributors who do the same; as a result the entire organisation expands..
As a consultant you earn commission not only based on your own sales, but also on the entire sales of your downline group. The amount of rewards paid out is decided according to the company's compensation plan.
Pyramid scheme
You can ask yourself 3 question to find out whether a company is a serious MLM company or a pyramid scheme.
View the questions
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