Direct Sales: Participants sell products or services directly to consumers, often leveraging personal networks
Recruitment: In addition to sales, participants recruit others to join the business, expanding their network and potential earnings
Commission-Based Income: Earnings are primarily based on commissions from personal sales and a percentage of the sales made by the recruited team, known as the downline.
Multi-Level Structure: The business model is hierarchical, with multiple levels of distributors. Higher-level participants earn from the sales made by their downline
Low Entry Barriers: Typically, there are low startup costs, making it accessible for many people to join
Product or Service Focus: Network marketing usually involves tangible products or services, ranging from health supplements to cosmetics, financial services, and more
Training and Support: Companies often provide training, resources, and support to help distributors succeed in both selling and recruiting
Potential for Residual Income: As the network grows, participants can earn residual income from the ongoing sales generated by their downline
Flexibility: Participants can work at their own pace and often have the freedom to manage their own schedules
Risk of Pyramid Schemes: It's crucial to distinguish between legitimate network marketing and illegal pyramid schemes, which focus more on recruitment than on selling actual products or services