Network Marketing Explaining:
Network marketing, also known as multi-level marketing (MLM), is a business model in which a company distributes its products or services through a network of independent representatives or distributors. These representatives are encouraged to recruit others to become distributors, creating a hierarchical or multi-level structure.
The distributors earn commissions on the sales they make, as well as on the sales made by those they recruit into the network. As the network grows, so does the potential for earning passive income through residual commissions.
Network marketing companies often rely on direct selling techniques, such as in-home presentations and online marketing, to promote their products and recruit new distributors. Advocates of network marketing argue that it can offer flexible work arrangements and low start-up costs, while critics claim that it can resemble a pyramid scheme and that the vast majority of participants end up losing money.