Network Marketing is a home business model that many successful companies use to market their products directly to consumers. These companies realize that their advertising funds are best spent paying independent distributors to market their products to the public by means of the most effective form of advertising known to man, word of mouth. Just like when you go out to a great restaurant, you want to go out and tell your family and friends about it. This is free word of mouth advertising that you just provided to the company.

In the network marketing home business model, independent distributors are paid commissions by the parent companies for their own personal referrals and, in most cases, the referrals of the business associates they recruit to help them build their business.

The independent distributors in a network marketing company develop home their home business incomes by developing an active customer base or by recruiting partners who also want to build a home business promoting the companies' products. Distributors my also earn an income, with some companies, by directly selling products to consumers, which they purchased wholesale from the parent company.

Network marketing companies that use word of mouth advertising usually have very reasonably priced products and services. The companies that offer consumable products have products which can usually be consumed in a short time. Some of these companies may have services offered by subscription only as opposed to consumable products.

This business model is a great way for people with limited or low business start-up capital to get into a home business for a few hundred dollars. The initial cost of this business should only involve the initial product purchase or the subscription cost of the network marketing companies' service.

Sometimes you may here a network marketing home business referred to as Multi-level marketing (MLM). This is actually an excellent business model where the cost of advertising is paid to the distributors of the companies' products and services, which in turn produces a business for the individual that leverages the time of others and builds residual income. Residual income is income which continues to come in regardless of whether you work or not. To build this type of income and business requires time and patience. This is not a get rich quick scheme.

Many people believe they can quit their jobs in about a month or so. This is possible for people who already possess the skills needed to run this type of business. But the fact is that it will take most people a few to several months to produce any type of measurable income that may be enough to replace their current income. Great training and consistent effort is what you need to succeed. Also a great support structure will go along way as well.

If you are looking for a great business model with low start-up cost and the ability to build a residual income that can last a long time without much effort to maintain once it is properly setup. Then a network marketing home business may be just what you have been looking for.

Look for future articles that will teach you how to setup, advertise and maintain your network marketing home business with very little or no cost.