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what is MLM?
Network Marketing or Multi-Level Marketing (MLM) as it is sometimes called is
a distribution method used by companies to sell and promote their goods or
services, often things like fragrances, cosmetics, jewellery, health products and
items for your home.
Why do companies use Network Marketing?
Rather than deal with shops, wholesalers, middlemen, advertising
agencies etc the company supplies the goods or services to the
customer via an Independent Distributor and pays the
Independent Distributor a percentage of the sale. On top of this
the Network Marketing company also pays the person a team
bonus on the sales generated by anyone they Sponsor into the
business (called their "downline"). The amount of this and when
they qualify for this depends on the company's actual
compensation plan.
It is often a cheaper way to sell their goods, which means
normally they can also give the end consumer a lower price than
they would selling via shops or television ads. Some products are
simply sold better on a one to one, face to face basis, that may
sound strange coming from a company that specialises in Internet
Marketing but it is true that people want to try items like perfumes
before they buy them.
The other benefit is that growth is in theory easier to respond to
and that feedback about products, offers and pricing is quicker
which should mean they market more of what people actually
want to buy.
Can you make money?
The amount of money you receive
is dependent on the time and
effort you put in. Network
Marketing is not a get rich quick
scheme or money for nothing, but
yes there is certainly money to be
made in networking and many
people around the world have
dramatically improved their
lifestyle and that of their families
by working with a Network
Marketing company.