Network Marketing Structure

What is Network Marketing?

Network marketing, also known as multi-level marketing (MLM), is a business model that involves selling products or services through a network of independent distributors.

Distributors earn commissions on their own sales as well as on the sales of their recruits, creating a potential for residual income.

Types of Network Marketing Structures

There are several different types of network marketing structures, each with its own advantages and disadvantages.

The most common types include:

Unilevel
Binary
Matrix
Hybrid

Unilevel Structure

In a unilevel structure, distributors can recruit an unlimited number of people directly under them, forming a single level.

Distributors earn commissions on the sales of their recruits, but not on the sales of their recruits' recruits.

Binary Structure

In a binary structure, distributors can only recruit two people directly under them, forming a binary tree.

Distributors earn commissions on the sales of their two recruits, as well as on the sales of their recruits' recruits, down to a certain level.

Matrix Structure

In a matrix structure, distributors can recruit a limited number of people directly under them, forming a matrix.

Distributors earn commissions on the sales of their recruits, as well as on the sales of their recruits' recruits, within their matrix.

Hybrid Structure

Hybrid structures combine elements of different network marketing structures.

For example, a hybrid structure might allow distributors to recruit an unlimited number of people directly under them, but only earn commissions on the sales of their first few recruits.