In popular usage it is a synonym for multi-level marketing and often mistakenly considered the same as a pyramid scheme.

In marketing however, it is widely used to describe a paradigm that stresses the connections between market actors and transactions. According to accepted theory other paradigms see network marketing as a two way relationship (i.e. one buyer and one seller). Network marketing is trying to overcome this limitation by looking at transactions and relationships from the viewpoint of every stakeholder involved, taking the lead from industrial or b2b marketing, where multiple stakeholders are the norm. For example, It is not uncommon to have several decision makers in a company's "buying centre", and the marketer can be organized into a "selling team". With so many stakeholders involved on each side of the transaction, a complex network is created. This network often expands over time as more people get involved, for example information gatekeepers and advertisers. So network marketing is perhaps best seen as a system of social networks where the relations between each of the links must be understood while, at the same time, viewing the system as a whole.

Do not confuse Network Marketing with Pyramid selling, which is a non-sustainable business model involving enrolling others into the scheme, often with no product or service being delivered.

Network marketing is an entirely different model and can offer a very real and sustainable business opportunity.

• Always carry out thorough research and ensure that the opportunity is legitimate and right for you. Some pyramid schemes claim to be offering network marketing opportunities, but they are usually fairly easy to spot. If you have any doubts always seek independent advice. To find out more about the potential pitfalls of Pyramid Schemes visit: http://en.wikipedia.org/wiki/Pyramid_selling_scheme
• All business opportunities require hard work, dedication and discipline…don’t be drawn in by the ‘make £10k per week from your bed.’ The old adage of ‘if it’s too good to be true, it usually is’ invariably applies.
• Many successful network marketers share networking skills and this can be essential depending on the market. Establishing yourself in a market place where you have few or no contacts could make life difficult and expensive. Effective networking can cut costs. For more information visit the moneyjungle.net training and education section.
  
  

For a list of UK and international Network Marketing Opportunities visit the moneyjungle.net business directory

In the UK, Network Marketing is regulated by the Direct Selling Organisation. If you have any doubts or concerns visit http://www.dsa.org/