Network Marketing Programs

Network marketing programs, when executed properly, are very successful. They are based on sales and distribution: a distributor sells goods or services to friends and family, and makes a commission. That distributor then recruits a network of other distributors, who in turn, further the network by recruiting others. Network marketing programs--also know as multi-level marketing--continue to develop levels and levels of distributors.

Why would a seller want to create competition by recruiting someone else--especially someone in the same social circle--to market the same goods? On a fundamental level, it doesn't make sense. But here's the reason why network marketing programs like Avon and Amway thrive: distributors make a percentage when their recruits make a sale.

That's the loophole--I won't care if someone around the corner is selling the same thing I am if I'm making a commission whether I sell it or they do. And they won't care if they recruit someone else to sell it, either. It isn't a bunch of individuals competing against each other, but rather a network of co-workers that is in support of each other. That's why Avon is still calling.

Caveat: Some Network Marketing Programs Are Fraudulent

Be warned, though: some multi-level marketing programs have found ways to cheat the system and create illegal pyramid schemes. There aren't many, but enough to make the papers and ruin it for the businesses that operate legitimately. Be very cautious when approached by a network marketing representative, and research the company thoroughly before agreeing to join their network.