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Network marketing, also known as multi-level marketing (MLM) or direct selling, is a business model that relies on a network of distributors to promote and sell products or services directly to consumers. In this model, independent distributors not only earn commissions from their own sales but also from the sales made by the distributors they introduce into the network. The structure of network marketing typically consists of a parent company that offers products or services, and a network of distributors who act as independent contractors for the company. Distributors are responsible for promoting the company's products or services and recruiting new distributors into their downline. One of the defining features of network marketing is the emphasis on building a network or team of distributors. Distributors are encouraged to recruit new members, who in turn can recruit others, creating a hierarchical structure. As the distributor's downline grows and sales volume increases, they can earn higher commissions and bonuses.
