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'.
Commonly referred to as network marketing or referral marketing, it is a very simple and can be effective way of making money for the average person. The way that the system works is that individuals sign up to promote the company and to sell their products independently. They are able to gather their own customers and recruit their own 'distributors' who become part of their 'downline' or team.
It is these un-salaried, independent distributors who represent the company products and are solely responsible for the sales that the business generate. They can develop their own organizations within the business by building their own team or downline as well as their own active customer base. Loyalty will often lead to repeat sales, therefore good communication and inter-personal skills are key o the success of any independent representative.
Commission are paid out through the companies compensation plan which will reward busy and hard working distributors with bonuses and different promotional ranks. These will depend on their level of activity and will help offer incentives to help new distributors get off the ground.
There are of course many skeptics to the activities of MLM companies. Due to the links made with pyramid selling and the nature of selling through word of mouth and to your friend and family, a negative spin has covered the activities of MLM.
Furthermore, negative light is shone on MLM due to the essence of selling primarily to ones close friends and family. This is viewed as hassling your loved ones, yet it is usually used for a distributor to kick start their own activities. For many people, it can be a useful source of supplemental income and can often lead to great wealth if pursued in the correct manner. - 33373
Commonly referred to as network marketing or referral marketing, it is a very simple and can be effective way of making money for the average person. The way that the system works is that individuals sign up to promote the company and to sell their products independently. They are able to gather their own customers and recruit their own 'distributors' who become part of their 'downline' or team.
It is these un-salaried, independent distributors who represent the company products and are solely responsible for the sales that the business generate. They can develop their own organizations within the business by building their own team or downline as well as their own active customer base. Loyalty will often lead to repeat sales, therefore good communication and inter-personal skills are key o the success of any independent representative.
Commission are paid out through the companies compensation plan which will reward busy and hard working distributors with bonuses and different promotional ranks. These will depend on their level of activity and will help offer incentives to help new distributors get off the ground.
There are of course many skeptics to the activities of MLM companies. Due to the links made with pyramid selling and the nature of selling through word of mouth and to your friend and family, a negative spin has covered the activities of MLM.
Furthermore, negative light is shone on MLM due to the essence of selling primarily to ones close friends and family. This is viewed as hassling your loved ones, yet it is usually used for a distributor to kick start their own activities. For many people, it can be a useful source of supplemental income and can often lead to great wealth if pursued in the correct manner. - 33373
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