MLM stands for multi-level marketing. MLM is also called network
marketing. Understanding this concept support to start a successful new
business.
This means that in MLM company there are several levels of sellers who
contact the buyer directly.
In a regular company, as a rule, they act like this: they advertise a
product, offer a gift for purchase, form an image, and then expect customers
to come to them. In the MLM business, they seek customers on their own:
they ring up, go around the apartments, turn around on the street. This
is called direct sales.
MLM is a direct selling system and the company that uses it is called a
network marketing company.
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Promotion Vectors by Vecteezy |
The essence of MLM
The idea of MLM is to make the buyer a seller and a sales
manager. Here they benefit in three ways: for their purchases, for
their personal sales, and for the sale of their structure.
Buyer benefit. You become a partner of the company. The company delivers the
goods, you buy it at a discount. If the company gives a discount to
everyone, the price for partners will be even lower.
The benefit of the seller. You can use the product yourself, or you can resell it to others and
get a percentage of purchases.
Benefit from its structure. You offer your friends to become the same consumers and sellers,
educate them, and get a percentage of their personal purchases and
sales. These people are your team, or structure. They also
build their structure. Their structure is the second level of
yours. This second level of your structure also invites people to
become your third level. That is why this is multi-level
marketing.
Your team members can receive goods from you directly, or they can buy
at the warehouse themselves or order delivery. The purchase of each
"your" person is automatically taken into account for you and brings you
profit.
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What is MLM Structure |
Levels in network marketing. You invited Two, those three also invited 2-4 people each. Those also invited people. As a result, you have 4 levels of sellers and growing.
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