Network marketing, otherwise known as multi-level marketing, is a business structure in which “hiring” consists of recruiting others into the company, and “payroll” consists of personal sales and commission from downline sales.
Often stigmatized as get-rich-quick or pyramid schemes, network marketing companies are nonetheless establishing solid reputations and pulling more and more interest from people disillusioned with the job market, failing pensions, and their lack of financial independence.
While the myth that all network marketing companies are scams is steadily being dispelled, some still question whether these businesses are actually worth getting involved in — can ordinary people be successful at them?
One of the greatest pitfalls of many network marketing companies is their failure to properly train recruits and equip them with the skills necessary to be successful.
Even though you don’t need a degree or a background in business to succeed as an independent contractor in a network marketing company, you’ll need to know how to run your “business” to maximize your profit. How far and how fast you go will usually depend on how much training you’ve had. Unfortunately, most of these companies don’t offer much in the way of training. They psych you up, hand you your materials, and let you loose.