Have you ever heard of Multi-Level Marketing? Some people may even confuse it with a pyramid scheme, but the two are very different. Multi-Level Marketing (MLM), also known as network marketing, is a business model based on resellers, in which resellers receive a share of the profits obtained from their own sales and from recruiting other resellers.
What is Multi-Level Marketing?
This type of marketing not only encourages the sale of a product, but also the affiliation of the company as a reseller to obtain a share of fusion database the Demystifying multi level marketing profits. Initially, this variation of marketing was based on the individual earnings of sales commissions, configuring unilevel marketing. As they saw that it was possible to increase profits by adding resellers, the principles of MLM were formed.
The reseller’s goal is to attract customers
who buy the product offered and build a pakistan phone number library network of resellers to form a team. Every time a new distributor is recruited, there is a process of Demystifying multi level marketing insertion into the sales culture with training, workshops, and awards in order to keep the reseller network engaged.
MLM is based on a meritocracy policy, because the better the team’s performance, the greater the profits. In addition, work is a reflection of the hours dedicated to productivity.
Multilevel Marketing Companies
Multilevel Marketing has its origins mobile list commonly associated with the businessman Dr. Carl Rehnborg, owner of the American giant CVC (California Vitamin Company). A vitamin supplement company. Today in Brazil. There are several brands that have become popular and created their empires. Just like CVC, using Multilevel Marketing. Some examples are:
Herbalife: Teas and weight loss shakes
Mary Kay, Jequiti and Hinode: beauty cosmetics.
>AMway: Home and self-care products.
>The vast majority of these brands grew due to the great appeal that MLM has for classes C, D and E. Through incentives created by the brand itself. Who charm them with the idea of flexible working hours and commissioned profits per sale.
The bad reputation of businesses that practice
generating financial losses due to lack of sales, and Demystifying multi level marketing thus being directly associated with the pyramid scheme.
Why is Multi-Level Marketing not a Pyramid Scheme?
Unlike MLM. In a pyramid scheme there is no possibility of circulating products to people who are not part of the scheme. Another characteristic is that the profits obtained are only from the recruitment of new members, with the prior investment required to join. In this way. It is possible to generate individual and exponentially greater profit for those at the top of the pyramid.
As a result, there comes a time when
there are no more people to recruit, making it impossible for money to come in and circulate. Furthermore, it is not common in pyramid schemes to have a sales culture immersion through training and workshops, since there are no actual salespeople.
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