A lot of people would shy away when we start talking about home based business in network marketing for the simple reason that they don’t want to sell goods and services. If you take a closer look into network marketing, you will find out that it does not necessarily mean peddling or offering goods and services to your friends or family members. In fact, network marketing is really a system of income sharing and cost sharing.

How does a home-based business on network marketing work? Network marketing works by recruiting members who will use the product it is selling. The system is multi-level where a person who becomes a member of the network can recruit a friend or a family member to register under his or her network. Every time the recruit purchases a product of the company, the recruiter gets a commission. The good thing about network marketing is that you do not only get a commission on your direct recruit but also on the purchases of your recruit’s recruit usually up to the fourth level. Some networking companies give commission up to the eight level of recruits which really a big advantage if you have a wide network.

Many people have benefited for network marketing. People who set up a home based business in network marketing have succeeded in earning a huge income from their networks. The key to success in the networking business is helping each other build a wide member base. A member who helps his or her recruit in recruiting more people would most likely enjoy the benefits of earning commissions from their recruit’s recruit so it is really a good idea to help each other.

There are many critics who would say that network marketing only makes the people on top of the network rich while those at the bottom will not get anything. Well, that is a matter of opinion. The system is really about pooling of resources by creating a network of consumers. If you build a network, not everybody could be on top at once but everyone will have a fair chance of making it to a "relative top" with enough hard work. Look at ANY business and you will see a hierarchy or "totem pole" order. In any corporation only a handful of bosses are at the top, and often employees never get a chance to be promoted, even if they work hard. In contrast, a home based business in network marketing is created to function as a team business, meaning you help each other out, and everyone has the same rules to be able to rise in the network.

Remember also that in modern network marketing there is a product (or products) being sold, and that commissions are usually limited to a few levels deep: both of these factors distinguish it from any simplistic "pyramid scheme." Organizations like the Better Business Bureau recognize this, and that is why they can approve of organizations like SFI, the link to which you can find HERE - See SFI.