Network marketing is a type of business model where the people who sell the product or service receive a commission on these products and services. As well, those who you recruit to also help sell the products and services give you a part of their commission to those above. You may find that this business model forms a pyramid shape and because of this many have equated this business model to a scam.
However, a pyramid form of a business does not necessarily indicate that it is a scam. Rather, it is how these businesses operate that determines if you are being scammed and also scamming others by participating in the business.
The test of whether or not the business you are in is a scam or not is actually discussed in a different article. That being said it is something to keep an eye out for as well as help others understand so that they are not falling prey to another scam or pyramid scheme.
The practice of network marketing allows a business essentially to go viral, in modern parlance.
Basically, the more people who spread the word about a business the more likely others will do the same, that helps grow a business. Instead of spending hundreds of thousands of dollars to a high priced marketing firm the company instead chooses to spread the wealth among those who are successful at advertising and selling the business.
Of course, there are some businesses that are shady or sketchy in that they can take your customers away from you if you happen to get very successful. Those businesses are pretty easy to find these days with internet forums and such, and it is strong advised you stay away from such businesses as they are unethical.
That is a business that you really want to succeed because of its overall goals and mission statement. If you know you can recruit others to the mission of the business and also help those succeed then network marketing may just be the business you should pursue. Those that tell you it is an easy job or that you can have lots of wealth without really working for it are misleading you. It will take some hard work and dedication but this work will eventually pay off and you may find yourself with a nice side income or even a whole different way of life.
Network marketing is gradually being seen as a legitimate way of doing business, if the product is right and the business is set up to help you and others succeed. Sure, there are some naysayers that will try and steal your thunder, the trick is to ignore those who want to stop you from changing your life.