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Network Marketing

Direct Marketing, Selling is a type of business opportunity that is very popular with people looking for part-time, flexible businesses. Some of the best-known companies in America, including Avon, Mary Kay Cosmetics and Tupperware, fall under the direct marketing umbrella.

Direct Marketing and Selling programs feature a low upfront investment--usually only a few hundred dollars for the purchase of a product sample kit--and the opportunity to sell a product line directly to friend, family and other personal contacts. Most network marketing programs also ask participants to recruit other sales representatives. The recruits constitute a rep's "downline," and their sales generate income for those above them in the program.

Things can get sticky when a direct marketing network compensates its participants primarily for recruiting others rather than for selling the company's products or services. A direct sales & marketing system in which most of the revenue comes from recruitment may be considered an illegal pyramid scheme.

Since direct marketing programs are usually exempt from business opportunity regulation and aren't defined as franchises under state and federal franchise laws, you'll need to do your own investigation and due diligence before investing any money.

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