Network marketing is a type of direct selling business model that offers entrepreneurs the opportunity to build their own business with a limited capital investment. Despite some myths and misconceptions commonly associated with this model, network marketing or multi-level marketing (MLM) is a legitimate business opportunity with a long and successful track record.

Network marketing involves product or services sales, either online or in person, to customers or a network of other distributors. You earn money through retail sales and through what is called team sales or recruitment commissions. When you recruit other distributors, you build a team of downline members and you can earn additional income based on their sales and the additional people they in turn bring into the business. This model is very attractive as it allows a profit to be built up over time through residual income streams.

An ideal candidate for a network marketing business is someone with high energy and excellent sales and persuasion skills. This business model is ideal for people who have great customer service skills, because they rely heavily on building relationships with existing and potential customers.

However, before considering starting a network marketing business, it is important to research the company and its products or services thoroughly. There are many network marketing companies that require you to purchase expensive products or training material upfront, while others create multiple tiers of salespeople, which can cut into your bottom line.

To find the best opportunity for you, consider the company’s track record, the quality of their products or services and the commission rates for their distributors. Check their policies and ensure that the income opportunities are realistic and achievable. Once you get excited about the product or service and understand that you can create a profitable business with a modest investment, you can carefully assess each opportunity and make an informed decision.