If you are not familiar with Network Marketing (also known as Multi-level Marketing, Direct Selling, Referral Marketing), here’s a quick summary of how it works and why.
Network Marketing is simply a marketing and distribution model, the same way television advertising, magazines and retail stores are marketing and distribution models.
The advantage of the Network Marketing distribution model is that it eliminates the need for companies to spend millions of dollars on advertising, which in turn is paid to its independent agents like you and me for representing their products/services.
The theory behind Network Marketing is that when you experience something that you like, you naturally share it with others. For example, when you see a movie that you like, you will naturally tell your friends and family. The same goes for a new car purchase, concert you saw, etc.
This referral marketing is free for the company, and is received much better by a potential customer than tradition advertising because it came from a trusted source (a friend, family member, etc.).
With almost every home business that uses Network Marketing, the goal is to share the products with a few people who want to use them and also a few people who want to have a home business of their own. This is much better than trying to only represent the product because Network Marketing compensation plans focus on leveraging.