Võrguturundus

Võrguturundus, also known as network marketing or multi-level marketing (MLM), is a business strategy where sales representatives are compensated not only for the sales they generate but also for the sales made by the people they recruit into the company. This recruitment forms a hierarchical structure, hence the term "network" or "multi-level." Participants typically purchase products or services from the company and then sell them to end consumers. A significant portion of their income, however, comes from commissions earned on the sales of their direct recruits and the recruits of those recruits, extending several levels down the network.

The products or services offered in võrguturundus schemes can vary widely, ranging from health and wellness products to financial services and household goods. Critics often point to the emphasis on recruitment over actual product sales as a potential red flag, suggesting that some operations may resemble pyramid schemes, which are illegal. In a pyramid scheme, revenue is primarily derived from recruiting new members rather than from the sale of products or services.

Võrguturundus companies emphasize independent entrepreneurship and the potential for significant income. Success in this model often depends on strong sales skills, effective recruitment strategies, and the ability to motivate and train a downline. Companies are typically registered entities that have been operating for a substantial period, and their business models are legal in most jurisdictions, provided they meet certain criteria regarding product sales and compensation structures. Regulatory bodies in various countries monitor these practices to ensure compliance and protect consumers from fraudulent activities.