Entrepreneurship and Small Business (ESB) Certification Practice Exam

Which business opportunity focuses on recruiting marketers to join a team?

1. Franchise

2. Licensing

3. Network marketing

4. Consultancy

The correct answer is: Network marketing

The business opportunity that focuses on recruiting marketers to join a team is network marketing. This model typically involves individuals selling products or services directly to consumers, often through personal relationships and networks. In network marketing, a key component is that participants not only earn income through their own sales but also by recruiting others into the business. As new marketers join the team and begin selling, they contribute to the networker's income, creating a multi-level structure where earnings can grow based on the performance of recruits. In contrast, a franchise involves licensing the right to operate a business using a brand’s name and support, but it doesn’t inherently focus on recruiting marketers as part of the business model. Licensing allows for the use of intellectual property without the recruitment aspect central to network marketing. Consultancy revolves around providing expert advice and services rather than recruiting individuals into a sales team. Thus, network marketing distinctly emphasizes building a team of marketers, making it the correct answer for this question.