What is network marketing?

Webster’s says Network Marketing exhibits a business model which exemplifies direct marketing. Typically, independent business owners (IBOs) become associated with a parent company in a contractor-like relationship. Independent business owners receive compensation for shopping within their own business, for selling products and for expanding their network of people ("downline") doing the same. An independent business owner receives a percentage of the profits generated by the network of all independent business owners introduced to the system by him or her, and also of the profits generated by the people introduced by those independent business owners, and so on. A points system, where the points represent the volume of products sold through the independent business owners’ network, tracks rewards.

Network Marketing Facts has in my opinion the most comprehendible definition. It is that Network Marketing is a business model that utilizes the power of referrals and relationship building to sell products and create income.

This makes the most logic sense to me. The other definitions allow room for misinterpretation leading to all the myths that is hurting the business.

Network Marketing is also called multi level marketing. This is also a true descriptive term for the business. In network marketing you are actually tapping into multi levels of referrals to provide an income to the originators of that down line.

So what is network marketing?

There are many things that can be considered as network marketing. Too much if you ask me. So maybe we should concentrate on what it is NOT. Maybe if we know what it is not then we can deduce what is network marketing.

It is NOT:

• pyramid Scheme

• A ponzi

• A get rich quick scheme (although you can get rich quickly in MLM)

I decided to write about what is not because I want to clear your head about the myths that surrounds the business. Just the words network marketing turns off most people. Network marketing has a recognized image problem because of difficulties in making a clear distinction between legitimate network marketing and illegal "pyramid schemes" or Ponzi schemes. Nonetheless, many Network marketing businesses operate legitimately in various parts of the world. What is network marketing has been asked many times but never answered correctly. The answer: Network Marketing is a Business model.

I hope that some day I can bring out the positive aspects of network marketing companies like Excel, Quest, Herbalife and Send Out Cards. These are the few companies that I am familiar with. These are great companies and they provide excellent income earning opportunities.

Join network market facts and help by posting your stories of network marketing on this website. No matter if it is positive or negative, fact or fiction they are very important to help other people learn what is really happening in network marketing.