What Is The True Definition of Network Marketing?

To set the tone for discussions/review on who can succeed in network
marketing let’s first examine what truly defines network marketing.

Network Marketing – also called Multi-Level Marketing or MLM – is a legal
system used for product distribution and distributor compensation.

In the United States, Network Marketing has repeatedly been upheld by the
federal and state courts for more than 50 years as a legal distribution and
compensation method when the following legal guidelines are followed:
1. The main objective of the business is selling viable products or services
at a reasonable price.
2. Each independent distributor maintains a retail customer base.
3. Potential incomes for recruiting others are not promised.
4. Distributors are not paid (head hunting fees) for the mere act of
recruiting others.
5. Distributors are not encouraged to buy more product than they can
reasonably resell.
6. The company must refund unsold product and sales materials,
including enrollment fees, if the distributor chooses to resign.

(These guidelines may vary slightly from company to company
but the basic overall requirements must be adhered to)

Because Network Marketing is legal, there is a great opportunity for
Network Marketing corporations and distributors to be highly successful.
Because of the opportunity Network Marketing offers the concept attracts
very dynamic promoters. Many Network Marketing companies have
crossed the line legally and as a result have been the subject of negative
media, as well as civil and criminal penalties.

Listen to how a Network Marketing company’s distributors present the
opportunity, and review the company’s business materials to discern if
the company is engaged in legal product distribution. Any business
opportunity promoted in a fashion similar to a lottery or chain letter will
not pass established legal guidelines. If you have questions about a
company, the Direct Selling Association (DSA), in Washington, D.C.,
is the professional association that represents and sets high standards for
the Network Marketing industry. The DSA has been in existence for over
100 years. You may visit their website at DSA.org.

Check back often for additional information and updates