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Network Marketing

Network Marketing is a term used interchangeably with Multi-Level Marketing and is a strategy which uses distributors as a way of selling goods or services.

The idea behind multilevel marketing is to grow a business through word of mouth. People are encouraged to introduce others to the business. In return they get a commission on sales made. Commissions may be paid several levels deep.

From a company’s perspective, multilevel marketing allows them to reduce advertising expenses. In an ideal situation, the multilevel marketing company would entirely rely on word of mouth promotion. The money that is saved on advertising expenses can then be given to the distributor network instead.

Multilevel marketing should not be confused with pyramid schemes. With pyramid schemes, people make money by simply signing up others. Usually, there is no real product involved. Multilevel marketing companies sell useful products. All profits are made on the sale of products and not the signup of new distributors.

The links on the left present information on:

  • Multi-Level Marketing Plans
  • Pyramid Schemes
  • Investment Risks
  • Specific case examples.
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