Network marketing has been around for ages. It is built around a theory that you create a network of sales people in a hierarchal manner to promote a given product. Some of the more recognizable network marketing companies are Amway, Avon, and Mary Kay.
The companies sell products that they manufacture themselves or have made for them and then use a sales force of independent distributors to market the product. These independent distributors are paid a commission or a mark-up on the products. The distributors are also encouraged to recruit new distributors and they are paid override commissions when someone they sponsored makes a sale.
The structure of most network marketing programs is set so that the people highest up the ladder make the most money. Several do not even have to sell a thing they make enough money from the sales of all of their directly sponsored distributors. Network marketing can be very profitable to someone that is willing to work hard and is not afraid to make cold calls.
Network marketing has caught a bad wrap from the acts of a few bad companies. There are several legitimate and successful network marketing companies. These companies have excellent products and solid reputations. They can be viable business opportunities either part time or full time for people that are looking for something with flexible hours. Most network marketing businesses can be operated from your own home.
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