The term multi level marketing or MLM is commonly used by certain companies to promote their products or services. It is also commonly referred to as ‘network marketing’ or ‘referral marketing’. The strategy employed by individuals employing this system is often called ‘word of mouth’.
The structure of the system is designed to compensate the independent representatives or ‘distributors’ who look to promote and market the companies products through their own personal, individual activities. These distributors are also able to built their own business with the organization by bringing their own reps on board and earning further commissions depending on their activities.
These representatives do not get paid in a salary or wage by the company, but through a commission structure set out by the business. Not one will you get paid commission based on your own personal activities in gathering customers and selling products, but also through the actions of those you have recruited. The more you recruit, therefore, the more you can earn.
Whilst the money you earn through your own customer gathering will be a lot more that the small commissions you receive from your team, building a large team can lead to great wealth. The company will offer a compensation plan that also offers bonuses and promotions.
There have however been numerous skeptics towards the activities of multi level marketing companies. Often these companies are seen to have a greater view on recruitment rather than on sales, and are thus viewed in a negative light. They are also often compared and related to pyramid selling. This is however a common misconception and an unfair comparison. Pyramid selling itself is illegal and there are actually no products that change hands. It merely involves the recruitment of other sellers who have no tangible product to sell.
However, for many people this form of business can offer a lucrative alternative to their daily work. It can be done either part time or full time and offers an escape for some who feel they can never make enough money in their current line of work. It requires no experience or qualifications whatsoever and can offer regular people a way of making very good money through good solid effort.
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