what is multi level marketing

Also called as MLM, Multi-level marketing is a strategy where profit is directly proportional to the direct sales done to the customers. Also, the company calculates the commission from the purchases made by appointed members or downline distributors. The direct sales organizations use this marketing strategy to encourage their current distributors to hire some new distributors.

The companies do this by paying the old distributor a little percentage of their recruit’s sales. Therefore all the distributors make some money through this procedure. The organizations choose perfect MLM software based on their current compensation plan.

Different MLM Compensation Plan:

– Binary

– Matrix

– Board Plan

– Gift Plan

– Unilever

– Hybrid MLM

– Generation MLM

– Party MLM Plan

– Australian Binary

– Australian X-Up Plan

– Spill Over Binary

– Monoline MLM

– Stair-Step

– And more.

Tips to Help You with Multi-level Marketing

– Before proceeding, gain some knowledge about the direct sales industry.

– You may not make $100,000 in a year. Hence be realistic.

– Do not annoy your friends as well as family to increase your sales.

– Also, do not mislead your clients with hypes.

– Instead, find your target market and focus on them.

– Set a realistic goal for your target.

– Learn some basics of marketing.

– Also, study new techniques to stand out from your competitors.

– Be punctual and systematic in following up the client.

Advantages of Multi-level Marketing

– Less risk involved.

– It does not include traditional business procedure.

– So, you can start a business without hiring the employees.

– It does not require any inventory.

– Hence low operating cost.

– The distributors can enjoy the residual income.

– Also, the distributors can enjoy a flexible schedule.

– They can work part-time from home based on their necessity.

– Besides, it does not require a long-term commitment.

Disadvantages of Multi-level Marketing

– It comes with hidden expenses some time.

– This strategy is not always legitimate.

– Also, the expectations of the distributors are sometimes unrealistic.


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