One success factor to multi-level marketing is network. Multi-level marketing and distribution are just impossible without the network of agents, marketers, buyers, suppliers, producers, manufacturers, advertisers, distributors and managers. Networks are channels for products and services.

The popular (and somehow, traditional) multi-level marketing approach is pyramiding. It is a scheme that builds network of associates or recruits to market and sell products and services on varying levels of gains.

One business associate often recruits 3 business associates by selling them product or service packages. The first business associate earns on every sale of product or service package. One of the 3 or all 3 business associate-recruits only earn/s when he/she/they successfully sell another product or service package/s to another set of 3 business associates. The web of business associates is the network. The first business associate earns most and more as the network expands.

There had been pyramid/network scams but the multi-level marketing system is eventually a working system.

Online social networks work similar with (and probably were inspired from) multi-level marketing. Online social networks are built faster and larger. Social networks similarly invite people, but only for the intent of socializing. Social networks similarly recruit people, but faster because they do not require money. Invited people just have to accept the invitation and they become part of the network. Likewise, social networks similarly builds web of people, but more far-reaching. Social networks can simply compose different nationalities of diverse demographics.

Social networks are largely vast that marketers and advertisers are signing in Facebook, MySpace, Friendster, Multiply and others. Product and service ads now are in widgets, not in big billboards. Social networks became a multi-level marketing tool because of its wide reach. Even politicians, environmentalists, economists and social workers are joining the network to extend their messages and efforts to a closely connected web of people.

Social networks even formed online businesses, special groups and communities to take advantage of the vast range of participants and buyers.