What Is Multi Level Marketing

What Is Multi Level Marketing



What is​ Multi Level Marketing?
Multi level marketing is​ known as​ network marketing .​
This is​ a​ kind of​ business where franchising and direct selling are combined .​
This business makes a​ person associated to​ a​ company in​ an​ independent transaction approach .​
It is​ an​ approach where the​ company creates a​ contactor relationship to​ the​ person who wants to​ expand his business .​
The members make their earnings based on​ the​ sales they have reached in​ that particular product or​ service .​
It also includes the​ sales of​ the​ person that they have recruited to​ join the​ business .​
Most of​ the​ time the​ individual who has recruited more members and provided a​ good sales output on​ the​ product compensate higher because of​ the​ effort to​ transact in​ two different fields.
There are pyramid schemes or​ Ponzi schemes,​ which are considered illegal .​
Most people associate multi level marketing to​ these kind of​ schemes because they also recognize themselves to​ be a​ legitimate networking business .​
Because of​ the​ bad image brought up by these schemes,​ many prefer to​ use their names for their businesses as​ home based business franchising or​ affiliate marketing .​
Commissions are earned in​ the​ process of​ selling a​ particular product or​ service in​ a​ legitimate network marketing .​
There can be no earnings in​ what they call as​ a​ sign up fee or​ for just recruiting yourself alone .​
This kind of​ marketing is​ always criticized because of​ the​ questionable recruitment process where they get their revenue and profit .​
They get their sales from members and new members,​ which are considered the​ end users of​ the​ product and as​ the​ distributors .​
These criticisms led to​ the​ major changes in​ the​ multi level marketing in​ the​ early 1980s when many companies have started to​ allow their members to​ concentrate only on​ marketing and not on​ distributing or​ stocking the​ product .​
Most multi level marketing firms nowadays perform as​ fulfillment firms by taking the​ tasks of​ shipping the​ product,​ paying the​ commissions and taking orders from their clients .​
Many people who are victims of​ the​ illegal schemes in​ multi level marketing are required to​ buy expensive products,​ but most of​ these schemes do not last long because most of​ the​ sales are not easily resold.




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