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Elizabeth sells makeup and has a team of distributors that she has recruited to sell makeup with her. She earns a percentage from all of the sales that the distributors make. What type of business opportunity is Elizabeth a part of?

0000

Network marketing

Dealership

Licensing

Franchise

User Mikemay
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1 Answer

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Final answer:

Elizabeth is engaged in network marketing, where she earns from her sales and those made by her recruited team of distributors. This differs from a dealership, licensing, or franchise as it focuses on recruitment and sales with usually no upfront cost.

Step-by-step explanation:

Elizabeth is part of a network marketing business opportunity. This type of business is also known as multi-level marketing (MLM). In network marketing, an individual earns income not only from their own sales but also from the sales made by people they have recruited to join the business, often referred to as their 'downline'.

This structure allows a person to build a team of distributors and benefit from the cumulative sales of that team. Unlike a dealership or franchise, there's generally no upfront cost to purchase a business, and unlike licensing, the focus is on recruiting and selling rather than granting permission to use a brand or product.

User Jitendra Vyas
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