MLM
(Multi-level marketing) or network marketing is a method of marketing products
from the company that created them directly to the end customer. In order to
market and sell goods, as well as spread information about them, the
manufacturer engages the consumers themselves (agents, distributors), who are
offered different types of rewards in return. In turn, consumers who have
become sales agents also attract new members, which ensure constant growth in
the network.
Network
sales typically take place through direct sales, where the distributor
addresses the customer directly, often with a limited number of
products. The network is often expanded by involving
acquaintances. The purpose of the system is to move products over the
largest possible network, so that the company can sell as many products as
possible.
Because
network companies often use acquaintances to expand the network, it is
traditionally not marketed via mass media. Instead, person-to-person
advertising is used. Such a form of marketing contributes to a personal
relationship between the distributor and the customer, and the customer thus
gains greater confidence in the distributor's information about the product and
its properties. In recent years, marketing has increasingly become online
and moved to social media.
MLM is completely legal
Like
illegal pyramid schemes, MLM business is based on a pyramid scheme. MLM
differs from pyramid schemes in that it sells actual goods and / or services.
It
is a problem that pyramid schemes seem to be an MLM business - disguised behind
the sale of goods and services. The MLM software
Pune also offers the MLM business a new path. The companies focus their
external marketing typically on the sale of goods and services, while the
company’s central purpose, recruitment, are communicated to participants in
closed rooms. This type of marketing means that the business can appear to
the outside world as legal and covers the actual nature of the business, which
is disseminated in closed rooms.
Many
people equate MLM companies with Pyramid schemes. That's probably
wrong. There are both similarities and big differences. MLM companies
use network marketing to distribute the products. The same method is used
in pyramid schemes. But here the similarities also stop. The differences
lie in what is sold. Is it a real product, which has a real value, or is
it just money transfers. The first is legal activity, while the second is
illegal. Although the Toyota car brand (just an example) is a car, not all
cars are Toyota. The same goes for the relationship between pyramid
schemes and MLM companies.
The
question then becomes; what are the products being sold? Serious MLM
companies have good products, good customer follow-up, a long business
perspective and good compensation plans.
So
to how MLM works within the four revenue models.
As a
partner in an MLM company, we act both as self-employed and as business
owners. The deposit is very low (usually some products that you can try
yourself), against up to several million that are needed to start other
traditional companies. The web
development India offers the best MLM software to the new MLM business
structure.
If
we choose to sell products, we work as independent. If we do not sell, we
do not earn anything. Our own efforts are a direct cause of our
income. On the other hand, we can earn very well if the volume of turnover
is large.
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