What is MLM(multi-level-marketing)

What Is MultiLevel Marketing (MLM)

What is MLM

In past few days many people asked me What is MLM (multi level marketing) ? as you all know my dear friends I am very happy  to answer and solve my viewers questions . So that made me write an article on this topic today.

Here you can learn more about What is MLM and all you need to know about MLM

What is MLM or Multi Level Marketing ?

Any company which comes in the market comes to make profits.And it is true if the company makes profits (in the legl way)vthen only they will be able to survie in the market and serve the people.To get profits obviously the product or services offered by the company need to reach the consumers or the coustomer.

Now to ensure the product reaches the consumers companies adopt various promotional and marketing activities . Like Television Advertisement Newspaper Advertisement Online Advertisement Sms Email marketing .etc,.

As we discussed above in MLM companies don't spend money on promotional activity.behalf of that they distribute to the people because of whom the sale of their product is made and happens

Now if you try to understand, Multi level Marketing this is one of the best form of promotion of products, it’s beneficial for both Companies as well as Consumers. Here we have to know the differences between Traditional business promotions and MLM business promotion ways.

 In a Traditional Business,How a product reaches the customer ?

From the above diagram you can easily understand how a product reaches the consumer.First Manufacturer / factory produces the product . After then company's distributor gets the product .From the distributors Wholesalers get the product .From them Retailer and At last the customer / consumer buy's it. In this process the cost of the product gets increased a lot because every mediator involved wants to gai some margin . Hence at the end the customer ends up by bearing it and paying high prices for the product it is done in every product. Even today Millions and bilions are spending on the Advertisement of a product as a result at the end customer  ending up by paying high prices.

How MLM is Beneficial to Companies?

You might have noticed of late many companies have started promoting their products through MLM / Multi Level  Marketing model because in this model companies don’t have to spend unnecessary money on advertisements.

If you see the Traditional Business model, companies FIRST spends Millions & Billions on advertisements, then they make some profit, only if the product gets sold. Even after spending Millions & Billions on advertisement it’s not 100% sure that the products will be sold. Hence it carries huge risk for the companies.

But if you closely study MLM / Multi Level Marketing model the companies who adopt this model get huge benefit, because companies don’t need to spend on advertisements. There are people who get associated with the company as Independent Representative  for the company & those  promote the products for the company.

But those people only get paid if the product of the company gets sold. Hence companies spend money on promotional activity after they generate the profit. Which is great way of doing business.

How MLM is Benificiary for customers ?

In MLM / Multi Level Marketing there is no intermediary apart from an Independent Representative (IR) that could be your friend, and the product directly reaches to the Customer from the Company.

Hence unnecessarily the customers need not to pay the high amount for the products. This way the customers are served in a big way as they are not funding for those advertisements.

HOW INCOME GENERATES  ?

more than product selling MLM/NM provides a lucrative option to earn great part/full-time money and most importantly passive income. Once you sign up somebody in the business by selling a product and he signs-up someone else and so on, you create a network of people who are recommending a product or offering a business opportunity thus generating sales for the company and also earning 10-125 of the total sale happening through your network. In MLM u get percent of every sale that happens in your group of people directly (when u personally sell to someone) or indirectly (your team member sells to someone). So, if you have a network of 10 people and your team sold product worth $1000 then you would earn $100-150 as commissions. For direct sale u get more money.

So the bigger your network, the larger will be the sales thus big commissions every week or month. Best part is passive income/residual income. Once you have a big team you get commission from sale made by people u dont even know because they were referred by some 100th guy but u still make money for that sale although your effort was nothing in it. It may sound easy but creating and training  your network takes a lot of time and efforts. THIS IS NOT A GET RICH QUICK SCHEME !!  But if you work hard you can earn money in short period of time u would never earn in jobs. 
There are many fraud companies too so beware of them and do your own research before getting into MLM.

To Conclude

Multi Level Marketing is business model where the company sells its products through individuals instead of usual retailers or shops. Individuals for the job are recruited by those individuals who were already recruited. Individual earns for his sales of products and also some commission in case other individuals who were recruited by him also get orders. For eg. Amway , Avon , forever , vesitage and many more.

thank you😊

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