Network marketing is a business opportunity that’s very popular with people searching for flexible, part-time businesses. Some of the well-known companies in the US, including Mary Kay Cosmetics, Tupperware and Avon, are all under the networking marketing.

Network marketing features a low upfront investment and the opportunity to directly sell a product line to family, friends as well as other personal contacts. Most of these programs also ask the participants to recruit as many sales representatives as the can. The recruits constitute a “downline” of the reps, and their sales usually generate income for those that are above them in the network marketing program.

It’s important to have in mind that things can end up getting sticky where a network marketing program compensates participants mainly for recruiting others instead of selling the company’s services or products. A network marketing system where most of the revenues come from recruitment can be considered a dubious pyramid scheme.

The key to network marketing is leverage. You can increase the number of work-effort hours by leveraging your time on which you can be getting payments by simply sponsoring other people and earn small incomes on their efforts. This basic concept is the foundation stone of network marketing.

However, it is important to note that network marketing is indeed a legitimate business. First, it is based on availing people with real and legitimate products they require, and are looking to get a fair price. Whilst some individuals do make lot of money via network marketing, in most cases their financial benefit is often the result of their own hard work and dedicated efforts in creating an organization that sells real services and products.

Networking marketing is a proven system where the creation, design, and the expense a corporate team has gone through create a road map for one’s own success. It is a business that calls for seriousness and for participants to follow a simple, duplicable and proven system that is provided by good companies.