What is MLM
MLM also known as Multi-Level Marketing can be defined as a distribution business that brings products from a central location to distributors and finally to an individual. There may be several levels, but eventually they all lead back to the same place, the company that makes the items.
Independent, nonsalaried salespeople of multi-level marketing, referred to as distributors (or associates, independent business owners, dealers, franchise owners, sales consultants, consultants, independent agents, etc.), represent the parent company and are awarded a commission based upon the volume of product sold through each of their independent businesses (organizations).
Independent distributors develop their organizations by either building an active customer base that purchases products from the parent company regularly, or by recruiting a group of downlines whom in turn also builds their customer base, thereby expanding the overall organization. Additionally, distributors can also earn a profit by retailing products they purchased from the parent company at wholesale price.
Commissions are paid out to distributors based on personal effort as well as team effort. Therefore there are multi levels of commission paid out per sale achieved. Different company adopt different compensation plans that may differ in the way commissions is being paid.
MLM also known as Multi-Level Marketing can be defined as a distribution business that brings products from a central location to distributors and finally to an individual. There may be several levels, but eventually they all lead back to the same place, the company that makes the items.
Independent, nonsalaried salespeople of multi-level marketing, referred to as distributors (or associates, independent business owners, dealers, franchise owners, sales consultants, consultants, independent agents, etc.), represent the parent company and are awarded a commission based upon the volume of product sold through each of their independent businesses (organizations).
Independent distributors develop their organizations by either building an active customer base that purchases products from the parent company regularly, or by recruiting a group of downlines whom in turn also builds their customer base, thereby expanding the overall organization. Additionally, distributors can also earn a profit by retailing products they purchased from the parent company at wholesale price.
Commissions are paid out to distributors based on personal effort as well as team effort. Therefore there are multi levels of commission paid out per sale achieved. Different company adopt different compensation plans that may differ in the way commissions is being paid.
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