What is network marketing? definition and meaning

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Direct selling method

in which independent-agents serve as distributors of

goods and services

, and are encouraged to

build

and

manage

their own

sales force

by recruiting and

training

other independent agents. In this method,

commission

is

earned

on the agent’s own

sales revenue

, as well as on the sales revenue of the sales-force recruited by the

agent

and his or her recruits (called downline). Also called multilevel marketing (MLM), cellular marketing, or by other such

names

, it is a multi-billion

dollar

worldwide

industry

that distributes practically any portable item, although

restricted

or banned in several countries due to its history as a vehicle for

consumer fraud

.

Said to have been pioneered by the now-defunct California Vitamin

Company

in 1941, it is a method

employed

by large firms such Amway, Melaleuca, Nikken, and Shaklee-Nagamuchi.

Source

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