Meaning And Functioning Of MLM
Multilevel marketing (MLM), also known as network marketing, is a method of marketing one's products and services through a network of independent distributors instead of selling them through conventional retailers.
Online MLM business is mushrooming day by day. With increase in number of people accessing Internet, there have been immense opportunties for businessmen to market their products on a large scale. This perfect combination of time and opportunity has been exploited to maximum in establishing and promoting concept of online MLM business.
It is one of most popular businesses as you can start it from home itself. The success of online MLM business lies in fact that working from home gives you liberty of working according to your comfort level. There is no one you are answerable to, it is not time bound and best thing is that you are your own boss. The risk involved is worth it only if you are willing to work hard.
All it takes to do an online MLM business is a little bit of planning and hard work. If business runs there would be no looking back. The biggest advantage of a network marketing company is that it generates a strong network of members and makes entire business powerful. The concept of residual income is helpful in working from home within few years of getting into an MLM business.
Functioning of MLM
In a multilevel marketing business each distributor is supposed to perform two tasks. One is of selling products or services and other of bringing in some more distributors to sell company's products or services. A chain of distributors is set up as each new recruit is supposed to do same two tasks. The entire set up is like a family tree of an organization.
If a distributor sells products, he or she is given his commission. If distributor introduced by him or her also sells product then he or she gets commission on those sales too. If distributors meet their specified targets of sale they get performance bonuses too. Each distributor helps all those under him or her as he or she benefits from their sales too. This makes them united and helps company on whole.