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We have come to observe the enormous growth of the network marketing industry. It is manifested from the billions of people who have participated in it, to the billions of dollars* worth of goods and services that have been sold through it and by it.

But what is Network Marketing?

Network marketing (also networking/multi-level marketing) is an industry made up of a chain of independent distributors, whose tasks are to sell the company's products or services and at the same time recruit more distributors who would likewise sell the company's products or services. It is often called *people's franchise,* because the seemingly endless recruitment eventually results to a hierarchical organization, which is also referred to as a distributor's *downline*.

In networking, each distributor earns: (1) commissions through direct product sales, and (2) residual income from the sales of the distributors in their downline. Bonuses may also be given upon attaining specified sales levels.

Perhaps what makes network marketing appealing is that it is generally conducted at home, and this greatly reduces the operating costs that are incurred in the traditional business, such as employee wages or office rent.

Although others have made fortunes in network marketing, a lot of people find themselves unable to achieve any kind of success. This is because while there are legitimate network marketing plans, there also exists a great deal of illegal pyramid schemes.

So what does it take to be successful in networking? First, we must learn how to get started in a network marketing business:

Know the basics: evaluating a plan.

The reason why many people end up as failures and drop out of a particular business enterprise is that they readily join a program without having any idea what to do or, worse, what the program really is all about.

Proper education about a particular business is necessary before paying or signing a contract. Take the time to learn about the network marketing opportunity, and take the time to think it over. You may want to consult your family, friends, or lawyer before making your decision.

In evaluating a particular business opportunity, consider the following:

The Company

There are numerous network-marketing companies that flood the market today, with more emerging at a faster rate. There is always the risk of these companies* going out of business, either through collapsing like a house of cards, or being forced to shut down by law enforcement. This is why careful consideration should be made in choosing a company.

Know the company's track record. Check with the local government where the company is based (or the agency where the company is registered) for lawsuits or any other records.

Also, choose a network marketing company that is known for its integrity. Above all, the company should adhere to high moral principles or professional standards, and should stand behind their products or services. Talk to people who have had dealings with the company. Beware, though, of shills * they are *decoy* references that make outrageous claims or exaggerations that are in favor of the company.

The product

Know the products or services that the company sells. Ideal products and/or services are those that are unique, are used by the average person everyday, and are competitively priced. Be cautious of *miracle products* * there should be substantial evidence/s that would back up their claims.

The key to an effective and successful networking is for distributors to love their products. It is very easy to promote products or services that you like and you personally use.

Capital

Remember that Network Marketing, like any other legitimate business, is a real business. There will always be a *cost of doing business*