Network Marketing

Written by Blaire Chandler-Wilcox
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"Network" marketing is another term for "Multi-level" marketing, often referred to as MLM. Many experts agree that network marketing is one of the most commonly misunderstood business concepts in the United States. The biggest misconception is that network marketing is the same thing as a pyramid scheme. Though there are con artists in every industry, and certainly network marketing certainly has more than its share, the simple truth is that network marketing is a legitimate business model that is increasingly popular with mainstream companies as a way to deliver their goods and services.

Pyramid schemes have no real product. It's a money game where supposedly you pitch money into the pit and are promised that when other people toss their cash in you'll get a larger percentage back. It's a lie. And it's illegal.

Network Marketing Is Legitimate Business

Network marketing, on the other hand, is the selling of actual goods and services. Yes, there are cons out there. But not every company that uses network marketing to distribute its stuff is crooked. In fact, many successful companies that are routinely the subject of positive articles in magazines like Forbes and Fortune utilize the network marketing business model.

In a network marketing system, companies sell products through independent distributors. These distributors buy the products at wholesale prices and sell them at retail prices. They may also be encouraged to find additional distributors, from whose sales they would receive commission. Network marketing, though it certainly takes discipline, drive and a good amount of elbow grease, in many cases can offer nearly unlimited earning potential, and great personal freedom and flexibility.

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