Glossary
Distributor
A distributor is an independent contractor who sells a direct selling or network marketing company's products, and in most plans can also recruit other distributors and earn commissions on their sales. Companies use different titles for the same role, such as consultant, representative, or brand partner, but the underlying independent contractor relationship is usually the same.
Also called: independent distributor, consultant, representative, brand partner
Why it matters
A distributor is not an employee, so the relationship usually carries no salary, benefits, or guaranteed income, and earnings depend entirely on personal sales and, where the plan allows it, recruited team sales. This distinction matters for taxes, for legal liability, and for setting realistic income expectations.
Example
A person signs up as an independent distributor for a wellness company, buys a starter kit, and begins selling products to friends and family while also inviting some of them to join as distributors under her.