Network marketing is an ever-growing industry as more and more people want to escape their monotonous nine-to-five life and gain financial freedom, flexibility, and a steady income. You cannot simply leap into the business, instead, you must know thoroughly how network marketing works and then decide.
Network marketing is a network created by millions of people around the world. It involves a network of people who sell products and services of a company. These people are known as distributors. The people they add to the network are called downline members or recruits. Distributors are usually compensated on a commission basis. That is, people in this network earn commission each time they perform a particular task, like when,
Sale of a product is carried out.
Downline member is recruited.
Sale of a product is carried out by their downline member.
This is how a network is built. Suppose a person A has a person B recruited under him. Now A will get commission whenever he makes a sale. He also receives commission on B’s sales. B will try to earn more money by recruiting a person C under him and so on. The main focus of the members in the network is on recruiting and selling as much as they can to earn more commission. Based on the sales they make, members are entitled to earn commissions, bonuses or incentives.
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