What is network marketing?

By Pattie Simone

Opinions expressed by Entrepreneur contributors are their own.

I need some clarification, because from what I've read here, it's kind of the same idea as importing and exporting.
While it's sometimes confused with pyramid schemes (in which people make money through totally illegal scams) any great boss can be considered a "network marketer" if his/her people help the company thrive under his/her leadership (assuming they get compensated for a department that outperforms!). Simply put for your purposes, network marketing is someone making money off the efforts of others who are selling tangible goods or services to a mostly consumer-based audience. Each person working for these firms has the opportunity to grow their
respective incomes by training (and making a portion of the profits
from) new company reps they bring onboard. There are several terrific companies set up under the network marketing model that are a famous including a mid-western basket company, a well-known scrapbooking firm and a natural skin care company.
Wavy Line
Pattie Simone

Digital Adventurer, Profit Alchemist, Entrepreneur

As president of Pomona, N.Y.-based marketing-advantage and founder of WomenCentric, Pattie Simone empowers ambitious companies, individuals and entrepreneurs, helping them to develop strategic, integrated, well-branded communications that engage diverse audiences and fuel sales.

Editor's Pick

She's Been Coding Since Age 7 and Presented Her Life-Saving App to Tim Cook Last Year. Now 17, She's on Track to Solve Even Bigger Problems.
Lock
I Helped Grow 4 Unicorns Over 10 Years That Generated $18 Billion in Online Revenues. Here's What I've Learned.
Lock
Want to Break Bad Habits and Supercharge Your Business? Use This Technique.
Lock
Don't Have Any Clients But Need Customer Testimonials? Follow These 3 Tricks To Boost Your Rep.
Why Are Some Wines More Expensive Than Others? A Top Winemaker Gives a Full-Bodied Explanation.

Related Topics

Growing a Business

How Embracing Your Inner Artist Skyrockets Your Business Success

Here's how engaging in an artistic outlet benefits business leaders.

Marketing

How to Effectively Utilize Video in Your Franchise Brand's Marketing Strategy

Knowing where to focus your effort will help you in many ways.

Science & Technology

How AI Is Transforming the Accounting Industry — and What the Future Will Look Like

It's time to harness the power of AI and transform bookkeeping.

Business News

'I'm Not a Very Good Businessman': Kevin Costner Is Risking a Ton of His Own Money on New Project

The "Yellowstone" star discussed how he bankrolled his new epic movies — and his accountant isn't happy.

Business News

California Colleges Are Flooded With 'Ghost Students' Attempting to Steal Financial Aid

About 20% of applications for California community colleges are fraudulent, according to the State Chancellor's Office.