What is a MLM?
MLM 101The word MLM is just an abbreviation for multi-level marketing.So what is the definition? A mlm is a sales structure used by companies to build a business. The company has some products just like any other company. The difference is instead of having a physical store, they sell their products through individuals. The individual that signs up for a fee, is allowed access to the companies products. It is then the individuals personal business, but they use the companies products as inventory. The company trains individuals about products and explains to them the compensation plan. They will also provide them with some marketing tools and a kit to help them get started with their business. What is a MLM compensation plan? Why is it called multi-level?Compensation plans varyThe company gives the individual a percentage of sales (usually 20-50%). If the individual gets people to join her team and they start a business, she will also receive a commission from their sales. It may seem minimal, but if their team recruit individuals, they will also receive a commission from their sales and so on and on. It is making money from different levels. The larger your levels are, the more money the individual will make. The individual has almost complete control over marketing and selling the product and building a team. What is a companies job and benefits from multi level marketing?The mlm companies job is to come up with a salable product and come up with the marketing tools to make it successful.They then must come up with a way to get the word out about the products by recruiting distributors (small business owners). They then train the distributors to train to sell and teach other distributors about the system. The Company now have built a complete business without an actual building. They have their products, salespeople, marketing and are making money. What is a mlm? in story form.
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