Network Marketing
/ˈnɛtwɜrk ˈmɑrkɪtɪŋ/
Definitions
- (n.) A business model in which individuals sell products or services directly to consumers and earn commissions from sales by themselves and their recruited network.
The company adopted network marketing to expand its sales reach through independent distributors.
- (n.) A legal structure subject to regulation to prevent pyramid schemes and deceptive sales practices.
Regulators scrutinize network marketing practices to ensure compliance with consumer protection laws.
Forms
- network marketing
Related terms
See also
Commentary
Network marketing arrangements often require careful drafting to distinguish lawful direct selling from illegal pyramid schemes.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.