What Is The Network Marketing Business Model?

Written by Matt Zavadil
Updated April 29, 2025

What is network marketing?

This is a question that I’m asked all the time, and it’s a topic I’m passionate about.

Why am I passionate about the direct sales industry?

I built a 9-levels deep international MLM downline organization…so I’ve got the experience you need to duplicate my success in this industry.
I did it without bugging friends & family or doing the dreaded 3-foot rule.
I see so many good folks struggling to earn money in MLM because they’re taught gimmicky & dumb ways to market.
I can teach you how to become a professional network marketer.

Picture with me an my team on a company cruise — Part of my team and I on a company cruise

In this article, I’ll give you a nice overview of the direct sales industry, and then point you over to other resources to help you in your journey.

I’ll explain what MLM is, how it works, and why it offers a positive way to earn a steady pay.

If you’ve joined a direct selling organization and working to make money with it…

Or if you’re thinking of joining an MLM company, then you’re in the right place.

To be 100% clear about something:

As a whole, the network marketing industry has a bad reputation in the eyes of many.

100% Deserved.

My mission is to teach direct sellers that you don't need to operate in that ridiculous manner. The goal is to stop talking to friends & family and "hitting up" uninterested people.

Shoe companies don't sell to friends & family. Soda companies, your neighborhood bakery, a course creator, or an e-commerce store owner don't operate that way.

Business owners understand the needs of their customers and advertise/market.

So should network marketers. It's possible to be a professional who sells their product first, without letting the business opportunity get in the way of that problem-solving perspective.

Are you possibly making the MLM advertising mistakes I go over in this video:

Go here for the Business-Building Training I mention in above video

Related Reading:

How The Attraction Marketing Formula Will Build Your MLM Business

My Review Of The Attraction Marketing Formula

How To Buy Leads For Your Network Marketing Business

Feature Download (if you’re a struggling MLM rep):

I’ve put together a free “MLM Quick-Start Video Guide” that shows you How To Attract 3-7 New MLM Customers & Team Members Per Week Without Prospecting A Single Person.

In it, I show you how to intimately know the pains & goals of your prospects so that you attract the BEST leads for your business.

You’ll never have to spam strangers scripted messages OR bug your friends and family ever again…

Click here to grab it all.

What is Network Marketing and How Does It Work?

The MLM business model, also known as direct selling or multi-level marketing, is a form of referral marketing where independent representatives sell the products and services of a company.

In multilevel marketing, you’ll earn commissions from your own sales, plus you can also earn commissions from the sales made by other independent agents you bring into your distribution-based marketing network.

As you can see, this form of consumer direct marketing is quite simple.

Network marketers are not paid a salary or wage by the company.

They’re paid commissions on their own sales. It means that network marketers can earn as much money as they want. There’s no limit to their income potential.

Successful network marketing is about how hard you work and how effective your business is.

The Benefits of Network Marketing

Let’s take a look at some of the benefits of MLM.

You’re in Control Working One of the Many MLM Programs

Direct sales give you the freedom and independence to be your own boss as you work to leave your 9-to-5 that you don’t enjoy.

You can make as many of your own sales as you want.

As well, you can recruit as many, or as few, independent agents as you desire.

Earn Money While Building Relationships

Multi-level marketing is great if you want to earn money while building relationships with other people.

MLM is different than traditional sales because networkers use what’s known as “relationship-based selling” based on person-to-person sales.

It means that you’ll build personal relationships with your customers and teammates by connecting on an emotional level.

You will NOT by using pressure or manipulation tactics as some traditional salespeople do.

You Can Work from Home

Direct sales give you the freedom to work from home.

It’s a quality option if you want to stay at home with your kids, or if you just don’t want to commute to an office every day.

How to Get Started in Direct Sales

If you haven’t yet joined one of the many available MLM companies, here are the steps to take.

Choose a Company and Product

If you’re going to be successful in MLM, then you need to choose a company and product that you believe in.

Look at several network marketing companies
Do your research
Make sure that the company is reputable

Set Up Your Business Systematically

Once you’ve chosen a company and product, it’s time to systemically perform your network marketing work.

This means that you’ll need to create a plan and put in place the systems and processes that will help you succeed.

Get Training and Support from the Company

Most network marketing companies offer training and support to their distributors.

Make sure that you take advantage of this valuable resource.

Start Marketing Your Business

Now it’s time to start marketing your business.

You can do this by talking to your friends and family, posting about your business on social media, or attending networking events.

I Bought This, Then Built a 9-Levels Deep Int’l Organization (click “play” to see details in Review Video below):

What to Expect in the Early Stages of Your Business

When you first start direct sales, you’ll probably feel excited and nervous at the same time.

It’s normal to have some doubts about whether or not MLM is for you.

However, if it’s something that interests you, then don’t let fear stop you.

In this section, I’ll talk about what you can expect in the early stages of your MLM business.

You Might Have Resistance From Your Friends and Family

When I joined my first direct sales company, I had some resistance from friends and family members who didn’t understand why I felt the attraction to the industry

They thought I was crazy.

However, over time they started seeing the results that I was getting and they changed their opinion of network marketing.

By the way, I wouldn’t have cared whether they did or not!

You shouldn’t care what others think either. If you do, look yourself in the mirror and figure it out before you let others dictate your future success.

You’ll Face Challenges but You Must Persevere

In the early stages of your business, you’ll face many challenges – such as rejection, lack of leads, no sales force yet, and frustration.

But you must persevere if you want to be successful.

You WILL Feel Like Giving Up

There will also be times when you feel like giving up.

However, don’t give up – just push through these tough times and keep moving forward.

Eventually, things will start to click and you’ll begin to see results.

The key to moving past these moments, by the way, is to develop productive habits.

You’ll Start Making Money In the Long-Term

In direct sales, it’s not uncommon to experience a “slow start.”

This simply means that it may take some time before you start making money.

But don’t worry – in the long-term, you will make money if you stick with it.

How to Grow Your Business Over Time

There are certain things you need to do to grow your business long-term.

Focus on Personal Development

To grow your direct sales business, you need to focus on personal development.

Read books, listen to podcasts, and attend seminars.

Learn Online Marketing Skills

You should also learn online marketing skills so that you can market your business effectively.

Start by reaching out to your warm market.

That market will dry up, however.

Learn how to attract qualified prospects by using the following as part of your marketing strategy.

Blogging
Social media marketing
Paid advertising methods

Never Quit

One of the most important things you must remember is never to quit.

Many people give up too soon because they’re not seeing results fast enough.

As long as you keep moving forward and don’t give up, you’ll eventually be successful.

The Future of MLM

MLM is a growing industry and there’s no doubt that it has a bright future.

As more and more people become aware of multi-level marketing MLM, the industry will continue to grow.

The industry is also becoming more advanced, with distributors using new online marketing methods to succeed.

Feature Download (if you’re a struggling MLM rep):

I’ve put together a free “MLM Quick-Start Video Guide” that shows you How To Attract 3-7 New MLM Customers & Team Members Per Week Without Prospecting A Single Person.

In it, I show you how to intimately know the pains & goals of your prospects so that you attract the BEST leads for your business.

You’ll never have to spam strangers scripted messages OR bug your friends and family ever again…

Click here to grab it all.

Final Network Marketing Thoughts

I hope this article has helped you understand what network marketing is and why it’s a great opportunity for people who want to achieve financial freedom. If you have any questions, feel free to leave them in the comments section below. I’d be happy to answer them.

Explore MLM-Related Articles

MLM Leads – How to generate or buy the best MLM leads? I rank the top 5 MLM leads providers, teach lead generation tips & strategy.

Attraction Marketing Formula Review – The Attraction Marketing Formula built my international MLM team 9 levels. My Attraction Marketing Formula review unlocks the mystery surrounding the world of MLM…

MLM Scripts – Use my HOT, easy-to-use prospecting scripts to get your leads on the phone. Bonus phone script = ACTION.

MLM Facebook Posts – Which MLM Facebook posts convert into sales & sponsoring a team? I give you over 41 Facebook post ideas.

Network Marketing Tips for Guaranteed Success – In these tips for guaranteed success, discover whether get-rich-quick strategies should be your focus. Or, is MLM even viable?

Cold Market Prospecting – Discover 7 powerful cold market prospecting techniques. How to approach strangers & build rapport!

Craft Perfect Network Marketing Elevator Pitch: Step-by-Step Guide – Master the art of an elevator pitch. Engage your audience & highlight key benefits in just 30 seconds.

Follow Up with Recruits – Learn 5 effective MLM techniques to follow up with recruits. Boost retention, engagement & success in your MLM business.

10 Proven Strategies for Building a Rockstar MLM Team – Discover 10 powerful strategies for building your team. Learn how to recruit and lead your way to MLM success.

LinkedIn for Network Marketing: Boost Your MLM Success – Leverage LinkedIn for direct sales. I break down building genuine connections and converting to customers.

How To Overcome Rejection in Network Marketing – Powerful strategies for overcoming rejection. Learn how to turn rejection into opportunities and thrive.

Mastering Referrals In Network Marketing: Your Growth Key – Unlock the power of referrals. Learn 10 proven strategies to boost your business and grow your network.

Network Marketing Recruitment Funnel – What’s a recruitment funnel you ask? Learn strategies to attract, engage, and convert prospects.

Ethical Network Marketing Recruitment – Discover keys to ethical recruiting. Best practices that build trust and foster genuine relationships.

Recruiting the Right People in MLM – Struggling with recruiting the right people? Learn the essential strategies to build a strong downline.

Psychology of Network Marketing Recruiting – Use the psychology of MLM recruiting to connect with the right people & create a thriving, ethical MLM business.

Avoid These Network Marketing Recruiting Mistakes – Steer clear of common recruiting mistakes. Use strategies top earners know to create a profitable business.

Instagram Stories for Network Marketing – Unlock the power of Instagram Stories for MLMsuccess. Learn expert tips, examples, and framework.

Instagram for Network Marketing – Want to use Instagram? Discover insider tips to explode your MLM biz w/ Instagram.

Storytelling in Network Marketing – Storytelling will transform your MLM business. Learn how to do it.

Objection Handling in Network Marketing – Learn powerful techniques for objection handling. Transform challenges into sales and a team.

Network Marketing Content Strategy – Unlock the power of a content strategy. Learn expert tips to elevate your business in my comprehensive guide.

How to Brand Yourself in Network Marketing – Uncover the secrets of how to brand yourself. Start standing out in the crowded MLM landscape.

How to Use Facebook Ads for Network Marketing – Discover the power of Facebook ads. Learn how to leverage this platform to get sales for MLM.

How to Use Pinterest for Network Marketing – Unleash the power of Pinterest! My guide covers winning strategies & creating engaging content.

MLM Recruiting Tips

Your Network Marketing Strategy

How To Build a Network Marketing Business Quickly

Network Marketing Training