As you begin to do your research, you'll hear certain keywords and phrases that you may not even know the meaning of. One of those phrases is called Multi-level marketing. I found the following definition on Wikipedia and thought this would bring some clarity.
Multi-level marketing (MLM), also known as Network Marketing, is a business-distribution model that allows a parent company to market its products directly to consumers by means of relationship referrals and direct selling.
Independent, unsalaried salespeople of multi-level marketing, referred to as distributors (or associates, independent business owners, dealers, franchise owners, sales consultants, consultants, independent agents, etc.), represent the parent company and are awarded a commission based upon the volume of product sold through each of their independent businesses (organizations).
Independent distributors develop their organizations by either building an active customer base, who buy direct from the parent company, or by recruiting a downline of independent distributors who also build a customer base, thereby expanding the overall organization. Additionally, distributors can also earn a profit by retailing products they purchased from the parent company at wholesale price.
Distributors earn a commission based on the sales efforts of their organization, which includes their independent sale efforts as well as the leveraged sales efforts of their downline. This arrangement is similar to franchise arrangements where royalties are paid from the sales of individual franchise operations to the franchisor as well as to an area orregion manager. Commissions are paid to multi-level marketing distributors according to the company's compensation plan. There can be multiple levels of people receiving royalties from one person's sales.
Now, based on the above definition, it may appear that MLM and Network Marketing are the same. While the two do work together, it's important to recognize one big difference.
When it comes right down to it, MLM is really all about how we get paid. Network Marketing (or networking) is all about the actions that we take to build our business.
Every successful business person learns how to network, whether they are part of a multi-level marketing company or not! So get plugged in and begin learning the basics of networking. You'll find many great resources right here on my site!
Multi-level marketing (MLM), also known as Network Marketing, is a business-distribution model that allows a parent company to market its products directly to consumers by means of relationship referrals and direct selling.
Independent, unsalaried salespeople of multi-level marketing, referred to as distributors (or associates, independent business owners, dealers, franchise owners, sales consultants, consultants, independent agents, etc.), represent the parent company and are awarded a commission based upon the volume of product sold through each of their independent businesses (organizations).
Independent distributors develop their organizations by either building an active customer base, who buy direct from the parent company, or by recruiting a downline of independent distributors who also build a customer base, thereby expanding the overall organization. Additionally, distributors can also earn a profit by retailing products they purchased from the parent company at wholesale price.
Distributors earn a commission based on the sales efforts of their organization, which includes their independent sale efforts as well as the leveraged sales efforts of their downline. This arrangement is similar to franchise arrangements where royalties are paid from the sales of individual franchise operations to the franchisor as well as to an area or
Now, based on the above definition, it may appear that MLM and Network Marketing are the same. While the two do work together, it's important to recognize one big difference.
When it comes right down to it, MLM is really all about how we get paid. Network Marketing (or networking) is all about the actions that we take to build our business.
Every successful business person learns how to network, whether they are part of a multi-level marketing company or not! So get plugged in and begin learning the basics of networking. You'll find many great resources right here on my site!
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