Network marketing is a business model that depends on person-to-person sales by independent representatives, often working from home. A network marketing business may require you to build a network of business partners or salespeople to assist with lead generation and closing sales.
There are many reputable network marketing operations, but some have been denounced as pyramid schemes. The latter may focus less on sales to consumers than on recruitment of salespeople who may be required to pay upfront for expensive starter kits.
- Network marketing appeals to people with high energy and strong sales skills, who can build a profitable business with a modest investment.
- A network marketing business can be a single-tier program, whereby you sell the products or multi-tier where you recruit salespeople.
- Beware of network marketing companies that create many tiers of salespeople and thoroughly research the company before you join.