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DEFINITION: Network marketing is really a business that markets a line of products or several lines of items through independent salespeople. A self-employed salesperson is recruited; she, in turn, recruits other people; mortified recruit others, and for that reason it goes. Each representative builds her own home based business with her recruits and the recruits under her, and she makes commission on product sales volume of her class. The people under the independent salesperson are called the downline. The opportunity for increasing the downline and earning money is exponential.

For example, some need to invite 6, 8 or even more people with your first place. Others require a person to invite only 2. Most will pay you over just what exactly everyone that joins your network purchases from the company, others will limit your commissions to the specific number of levels deeper. Some will pay out the comission a set price while others will change the rate depends upon the area. Finally, some allows your down-liners with outstanding performance to "jump" above you inside organization, while others will always respect your own in the network. A superior book to see if you want to be aware of all of your compensation plans is Understanding Multi-Level Commissions by Rawlings.