Network marketing, also known as multi-level marketing (MLM), is a business model where individuals earn income through direct sales of products or services and by recruiting new members into the distribution network. Participants in a network marketing program typically earn commissions on their sales and the sales made by the people they recruit.
Here's a simplified explanation of how people make money in network marketing:
Direct Sales Commission: Individuals earn a commission on the products or services they sell directly to customers.
Recruitment Commission: Participants can also earn commissions by recruiting new members into the network. They receive a percentage of the sales generated by those they recruit.
Team Building and Overrides: As the network grows, participants may build a team of recruits. They can earn additional bonuses or overrides based on the sales generated by their entire team.
It's important to note that while some people have found success in network marketing, it has also faced criticism for resembling pyramid schemes. It's crucial for individuals to thoroughly research and understand the specific network marketing program they are considering, as success often depends on various factors such as the product or service being offered, the compensation plan, and one's ability to build and lead a team.
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