The simplest explanation of network marketing is that it is a method of marketing that utilises independent representatives to reach potential customers that a company otherwise would not reach with traditional marketing methods. They know that word-of-mouth marketing is a far more powerful and effective method of marketing. Companies are willing to pay you to communicate their message to your friends and family. A network of people doing a little work is very powerful.
You introduce Sue, but as you can see you now have 5 new people in your group because you have shown Bob and Ann how to build their businesses. Your bonus is based on the whole of your growing team.
You introduce Bob, Tom and Ann to the business and show them how to earn money. The company reward you by paying you a bonus based on your whole groups turnover.
When you start in the business, you will not have a group. Your bonus will be based solely on your personal turnover.
YOU
YOU
BOB
BOB
ANN
ANN
YOU
TOM
TOM
SUE
A
C
D
B
NETWORK MARKETING
Basically you get a bonus paid to you based on your whole groups turn over.