(n) (also known as "multi-level marketing") an effective form of direct-selling in which independent distributors are financially compensated for their efforts in (1) selling products to consumers, and (2) recruiting and training other distributors to do likewise. A distributor's earnings depend on (1) the individual's personal sales volume, (2) the size and scope of the individual's "successline" or sponsorship group, and (3) the sales volume generated by the successline group. In the case of NSP, qualifying distributors earn bonuses on four levels of sponsorship and overrides on managers up to five levels deep.
A form of franchising in which products are moved from the manufacturer to the consumer via networked agents who are users themselves but sell the products largely by word of mouth.
A business in which a distributor network is needed to build the business. Usually such businesses are also MLM in nature in that payouts also occur at more than one level. Network Marketing is sometimes also used incorrectly to indicate that the business uses a network of product suppliers in order to offer a broader selection of products. It is usually used this way to differentiate themselves as a way to suggest that their program is superior to other such programs.
Most often used to describe the sales efforts of a chain of independent distributors who purchase sales rights and products within assigned territories. Network marketing has been used in recent years to sell a wide variety of items, most notably personal care and household goods.
A business in which a distributor network is needed to build the business. Usually such businesses are also Multi-level Marketing (see above).
First done in the offline world, and also known as "multi-level marketing" or MLM, this is a form of marketing in which you are encouraged to promote the products of some company for commissions. Unfortunately, many of these companies are scams or pyramid schemes, which has given Network Marketing a bad name. Also, most MLMs require you to be a paying customer yourself, so many people end up spending far more than they can ever hope to earn.
Any form of selling that allows independent distributors to recruit other independent distributors and to draw a commission from the sales of those recruits.
A non-storefront type of selling where a manufacturer, or its IMA (a network marketing company) sells directly to the consumer through a “network” of independent contractors rather than through conventional outlets. IMAs multiply themselves directly and indirectly by sponsoring other IMAs and are paid accordingly on multiple levels.
Term that MLM companies prefer to describe themselves because "multilevel marketing" sounds more like a pyramid scheme.