Network marketing, also known as multi-level marketing (MLM), is a business model where individuals sell products or services directly to consumers, while also recruiting and training others to do the same. In this model, individuals earn commissions based on their own sales as well as the sales of the people they recruit and train.
The structure of network marketing typically involves a hierarchical network of distributors or salespeople, with those at the top often earning the most money. The model has been used by a variety of companies in various industries, including health and wellness, beauty, and home goods.
Critics of network marketing argue that it can resemble a pyramid scheme, where the emphasis is on recruiting others rather than selling actual products or services. Additionally, some MLM companies have faced legal challenges over claims of false advertising and deceptive business practices. However, proponents of network marketing argue that it provides individuals with a flexible and low-cost way to start their own business, with the potential for significant income.
As with any business model, it is important to thoroughly research the company and understand the risks and potential rewards before getting involved in network marketing.