Network Marketing

Network Marketing, also known as multi-level Marketing (MLM), is a Business Model that involves a pyramid-shaped structure where individuals sell products or services directly to consumers while also recruiting new distributors to join the business. Each distributor earns commissions not only from their own sales but also from the sales made by their recruits, creating multiple levels of income potential.

For example, if a distributor sells skincare products and recruits three new members, they earn commissions from their own sales and a percentage of the sales made by their recruits. This creates a network of salespeople, where income can be generated from multiple levels of recruitment.

One well-known case of network Marketing is Amway, which offers a wide range of products and allows individuals to earn income through direct sales and by building a network of other distributors. Another example is Herbalife, which specializes in nutritional supplements and weight management products, utilizing a similar MLM structure for its sales strategy.