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What is Network Marketing?

Generally speaking…. Network marketing is a word-of-mouth based distribution system of products typically from the manufacturer to the end-consumer. The consumer can choose to become a distributor themselves, and be compesated on a result basis.

This is very similar to any kind of word-of-mouth based marketing of any product, where the main difference lies in the compensation system.

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In other words, most people do network marketing every day for brands, products and services they like, but they just don’t get paid for it.

In network marketing there usually is a multi-level-marketing type compensation system applied – meaning that you not only get paid on the sales volume created by your customers – but also your customers customers.

Multi-level-marketing is very democratic system, because everyone gets the opportunity to become a franchisee and create their own organisation of franchisees on which salesvolume they get compensated for.

It’s just one person talking to another – multiplied. Simple, right?