Quick Definition

Network marketing is a business model where individuals sell products or services through a network of distributors, earning commissions based on their own sales and the sales of their recruited team.

Examples

• 1A person joins a company that sells health supplements and earns a commission on every product they sell, as well as additional commissions from the sales made by people they recruit.
• 2A network marketing company specializing in beauty products where distributors host parties to showcase products and recruit new members.
• 3An individual starts selling educational books under a network marketing scheme, earning bonuses for reaching certain sales thresholds and for the sales achieved by their recruits.

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