network marketing
Network Marketing is a business distribution model that allows a parent multi-level marketing company to market their products directly to consumers by means of relationship referral and direct selling.

Independent, unsalaried salespeople of multi-level marketing referred to as distributors (associates, independent business owners, franchise owners, sales consultants, consultants, independent agents, etc.), represent the parent company and are rewarded a commission relative to the volume of product sold through each of their independent businesses (organizations). Independent distributors develop their organization by either building an active customer base, who buy direct from the parent company and / or by recruiting a downline of independent distributors who also build a customer base, expanding the overall organization. Additionally, distributors can also earn a profit by retailing products which they purchased from the parent company at wholesale price.

Distributors earn a commission based on the sales efforts of their organization, which includes their independent sale efforts as well as the leveraged sales efforts of their downline. This arrangement is similar to franchise arrangements where royalties are paid from the sales of individual franchise operations to the franchisor as well as to an area or region manager. Commissions are paid to multi-level marketing distributors according to the company’s compensation plan. There can be multiple levels of people receiving royalties from one person's sales.
This is a list of companies which utilize multi-level marketing, also known as "network marketing", for most of their sales.

ACN Inc.
Agel
Alticor
Amsoil
Amway
BioPerformance
Coastal Vacations
Cobra Group
Deutsche Vermögensberatung
Equinox International
Excel Communications
Forever Living Products
Freelife
Fuel Freedom International
Fund America, Inc.
Herbalife
Juice Plus
Kleeneze
Mannatech
Mary Kay
Mini IQ
Monavie
National Safety Associates
Neways
Nu Skin Enterprises
Omegatrend
Oriflame
Pre-Paid Legal Services, Inc.
Primerica
Quixtar
Shaklee Corporation
Stream Energy
Success University
Sunrider International
Tahitian Noni International
USANA Health Sciences
Vector Marketing
Vemma
Watkins Incorporated
World Financial Group
YTB Travel
XanGo
Zija
What is Network Marketing?

It is a relationship business; it is about helping people build a business or focusing on your customers for your products and services. Network Marketing really is an unseen business and it is all about sales.

It is businesses in which anyone can invest a small sum of money and through sheer tenacity achieve staggering levels of financial reward and personal freedom. But it requires education based on market tested results.

Network Marketing does not have giant signs or large offices, yet according to the Direct Selling Association (DSA) over 13 million people in the U.S. are working in the network marketing / direct selling industry.

The Network Marketing / MLM industry has a very shady reputation. Many of the people you will talk to feel it is a scam.   Are they justified in this opinion? In many ways they are justified, but you can make a difference with the way you market your business.

In the 1950's when Franchise’s first emerged they where labeled a scam, illegal etc.  Fortunately a franchise is not labeled as such anymore or quite possibly you would not be enjoying your favorite hamburger today.

Let’s look at the type of business models that you could be involved in or approached with:

They usually offer reasonably priced products and services that people consume in a short time. Generally the commission structure is less up-front then the direct sales companies, but it has a benefit that most direct sales companies do not have and that is residual income.

It costs much less to get involved with this form of business, a few hundred dollars.
- Allows more people to become involved.
- Builds Residual Income.
- Leverages the time of others.

Network marketing is all about sales and distribution, but a different kind of sales. It’s more of a soft sale or recommendation then the hard closing type that you’re accustomed to with the typical salesman or saleswoman in the direct sales.   The best approach by far in network marketing is a consultative sales approach. This is used very successfully today.
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