In simple terms, network marketing is a network of people
who have access to a range of products and services that are
distributed through that network.
Rather than operating via a shopfront, people can buy these
products and services for personal use or to sell to others.
Further to this, people can assist in expanding the network
by inviting others to join the network, thus extending the
concept to their sphere. Over time, and with more people
introduced, the volume of products and services being distributed
increases. Along the way, a portion of the profits on
those products and services are paid to you and people in your
‘down-line’ (we’ll explain some of this terminology later). In
time, the opportunity to create a regular income from a team
of people using and selling products becomes a reality.
Over the years, network marketing has attracted some
less than favourable perceptions. The industry’s image was
tarnished in its early days of development, when there
were no systems in place to educate those involved to go
about their business in an ethical and professional manner.
Additionally, there were many disreputable companies around
who took the attitude of selling products at any cost, to
anyone, with no long-term strategy; there were also some
illegal pyramid schemes that entered the market disguised as
network marketing companies.