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Network marketing is a business model that relies on a network of distributors to grow a business. Pyramid Schemes. How do you tell whether it's a legitimate business opportunity or a scam? This term applies to network marketing that pays you for direct sales or traffic you refer to a website and for direct sales or referred traffic made by affiliates or distributors you recruit to work under you. Continue Reading. Be careful. As always, when you're investigating a potential business opportunity, you'll want to gather all the information you can about the MLM company's products and operations. An enthusiastic sales force leads to more sales, but also to more recruits into your marketing network. You do not need to recruit other distributors and are only paid if you make a direct sale. Avon, is a company that uses single-tier networking marketing. Deceptive marketing practices and pyramid schemes can land you in hot legal water trouble if you are not careful. Check with the Better Business Bureau to see if there have been any complaints about the company.
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