“The concept of network marketing is simple, and it consists of two primary principles. First, a company relies on independent representatives, or distributors, to sell its products and services directly to consumers. That’s why it’s called direct selling. The company is spared the expense typically associated with the middlemen in business. In direct selling, you don’t need retail space or massive and costly advertising campaigns. The independent representatives, using a variety of marketing vehicles, dynamically advance products and services to the point of purchase.
Second, the representatives are granted the opportunity to build their own independent sales organization and network of marketers-giving rise to the phrase building a downline. The representatives receive a percentage of the cash revenues generated monthly by the network. Some levels of the network pay a higher commission that others.