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What do you understand by the Multi Level Marketing Business?

Wednesday, March 17, 2021

 

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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