There's a lot of talk about network marketing, also called multi-level marketing, and people have strong opinions about it, both pro and con. While some people love it, and seemingly make a good living at it, others feel it is a scam, just like the pyramid or ponzi schemes. The fact is that many people don't understand what it is or how it works, so they are unable to ascertain whether it's a good fit for them.

Let's take an in-depth look at Network Marketing as a business model. The first point is that, yes, it is a business. There is product to be sold, salespeople to sell it, and customers to sell it to. That makes it a business. If you want to get involved with network marketing, recognize that fact, and consider yourself a business owner.

Just like any other franchise, a person who wants to get into network marketing buys into the business. Usually, this is a fairly small fee, especially compared to the price of buying into an established, brick and mortar, retail franchise. This person is now called a representative or agent. He or she works on establishing a customer base, and selling the product, whatever it may be.

The difference between network marketing and standard retail franchises is that now the agent--we'll call her Agent A--besides selling product, also tries to recruit other people to sell the product, and any who sign up come in under Agent A. If she recruits three people, who are now Agent B, C, and D, they are at a lower level than Agent A. They, in turn, establish a customer base, sell product, and try to recruit more agents, who will be one level lower than themselves. This is why it's called multi-level marketing. It's also a network of agents, all working for the same goals, although on different tiers.

Part of the business model is that each agent is entitled to a percentage of his recruits' sales as well as his own. In turn, of course, he pays a percentage of his sales to the person who recruited him. The person or persons at the top make more money than those at the bottom, but that is standard business practice.

There are a few variations of this basic model. Sometimes the numbers of recruits on each level is limited. When that number is reached, a new level begins. In other models, the number of levels which pay up the ladder to any given agent is limited to a specific number, such as five or seven.

So the questions remains, is network marketing a good fit for you? If you are person who has taken business or marketing classes, or had real-life business experience in business or sales, then you would probably do well. Like any business, it takes energy, time, knowledge, and determination to succeed.

Even if you have not had any business experience, network marketing may be a good first business for you. The initial investment is low, and there is often support available from team members and fellow agents. However, if you want to make a go of it, you must be prepared to learn about networking, marketing techniques, business strategies, and business plans and development. Take classes, go to seminars, study, work hard, and you will make your business a success.

Harry Fassett has been in the Internet Marketing Industry since 1995 and is currently an SEO/SEM Specialist. See http://www.harryfassett.com for more information about his services. Plus currently an Independent Agent for Zurvita in Calif at: http://harryfassett.zurvita.biz