An Introduction to Network Marketing...

Network marketing or multi-level marketing (mlm) is a business system used by companies who recruit individuals to sell their products or services as independent contractors. The independent contractors receive money from the products or services that they themselves sell. Each contractor also receives commissions  based on the sales made by people they have brought into the company.

Mlm network marketing relies on current contractors to recruit new contractors. The exact structure of recruitment varies form company to company. However, some companies offer different levels of promotion with financial bonuses depending on sales and the size of a contractors sales team.  

Exercise caution  when you are investigating network marketing opportunities. There are many legitimate mlm network marketing businesses available. However, some illegal pyramid schemes are disguised as network marketing businesses. 

Pyramid schemes usually put more focus on recruiting new members than actually selling products. Be wary if the business emphasizes earning money through sales commissions of people you recruit rather than through products you sell yourself.

Thoroughly research any network marketing business before you join. An established company has a better chance of stability than a relatively new one. Make sure that the company has a product that is in demand in the consumer market. The company should be making money from actual product sales instead of recruitment alone. Also, make sure the products are being sold to the general public as well as people who have joined the business. 

Many companies will have a small start-up cost. However, you should beware of network marketing businesses that have a very large start-up cost.

Do not invest in a company that promises riches without work. Any legitimate network marketing business will require selling a product or service. Make sure that the business offers good training. Don't be afraid to ask the person who recruited you for advice and help getting started.