Network marketing, also known as multi-level marketing (MLM), is a business model in which individuals sell products or services through a network of distributors. Distributors earn commissions not only for their own sales but also for the sales made by the distributors they recruit into their network. MLM companies often have a hierarchical structure, with higher-level distributors earning a percentage of the sales generated by those lower down the network.
It's important to note that while some people have been successful in network marketing, it has also been criticized for its resemblance to pyramid schemes and the potential for individuals to lose money if they are unable to recruit enough people or sell sufficient products. Before getting involved in any network marketing opportunity, it's essential to thoroughly research the company and its compensation plan to understand the risks and potential rewards.