What is Multi Level Marketing

What is Multi Level Marketing

What is Multi Level Marketing

Modern multilevel marketing is a marketing concept and projects for the distribution of goods or services, which is based on creating a network of independent sellers (distributors).

They have the right to attract to sales partners who receive similar rights and receive income, depending on the volume of products purchased both by the distributors themselves and by the network they have built.

Multi-level marketing, or in other words network marketing, is a special scheme for promoting goods in the consumer market, which gives the manufacturer the opportunity to distribute the products produced to direct consumers by direct sales. Our agency https://adrenaline-studios.com/ is working in the sphere of project management, and multi-level marketing, ready to offer solutions to all its clients.

 

The most important feature of MLM marketing is the ability to receive a second type of income – for organizing a consumer network. The companies monitor the involvement of new distributors in the network and pay to individuals who attract new partners a certain percentage of the personal purchases of newcomers and the volume of purchases of their consumption networks.

Shortly speaking, multi-level marketing can be considered as a form of retail store. Sales agents of the company establish direct contacts with a potential buyer independently on the basis of personal connections.

After selling the product to the buyer, the distributor invites him to find another company’s customers on the same terms, for a certain percentage of sales. As a result, an extensive multi-level network consisting of buyers-sellers (sales consultants) is created.

 

The advantages of MLM marketing can be considered that:

  • direct sales of goods can save on retail space and advertising;
  • sales of goods, based on its exclusivity and demonstration of the best qualities, are often more efficient sales through a network of stores with a wide range of products;
  • companies bring up a whole cohort of loyal customers who prefer to buy exclusively from familiar people;
  • the increase in sales is driven by commission payments to distributors.

Network companies, like the entire MLM industry, are much more resilient to economic crises than a linear business.

 

The main principle of multi-level marketing is that in this business the number of referrals involved in the network (distributors) is much more important than the number of personal contacts.

 

The other principles of this strategy are:

  • principle of distribution of cash flow to a network company;
  • technique of thorough analysis of the business structure of the marketing plan;
  • identification of “weak” places in the presentation of marketing plans;
  • analysis, project development, and implementation of incentives.

 

Multi-level network marketing is a form of private enterprise. Its convenience for beginners lies in the fact that the organization of business does not require large material investments. However, in reality, only a small percentage of people trying to make money in this business receive really significant profits.

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