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.
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?