What is Network Marketing?
Also known as Multi-Level Marketing, Network Marketing is a direct selling business model in which independent contractors are supported to manage and execute their own sales as well as recruit other contractors.
How Network Marketing Works
Be Your Own Boss
When buying into the network marketing model, you are in total control of your operations. This can be an attractive scenario for someone looking to work part time or manage their own hours.
Buying In and Getting Started
Often network marketing companies have a low buy in rate or "set up fee" in order to get started. You may also come to the table with a generous contact list (network) that woudl buy from you.
Most Network Marketing companies feature two ways to make money - through actual sales of the product (revenue) and through recruiting other independent agents to join.
Network Marketing Best Practices
Before joining a Network Marketing company, do the most research on the company as possible. How long has it been around? What have others stood to make by joining the sales force?
What does success in a network marketing career look like? First off, it can be very lucrative. Well established network marketing companies such as Amway and Mary Kay Cosmetics have made a lot of money for a lot of people. There is also the success and experience gained in running your own sales force and being your own boss.
Listen to your Gut
If you notice any red flags about a Network Marketing company, then keep researching. Network Marketing is notorious for being shady, especially when the model is heavily focused on recruiting other sellers. This can be a Pyramid Scheme and not something you want to be involved in.