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Defining MLM

Submitted by Benton Bernhardt | RSS Feed | Add Comment | Bookmark Me!

As the name suggests, MLM (Multi-Level-Marketing), basically involves selling a company’s product directly to the customer by way of networking. Traditional retail selling is left to the brick and mortor businesses.

MLM is executed through a multi-layered distributor system where payments by the company are made to the distributors according to the distribution level they are in. Distributors are responsible for the business development and the revenue generation for the company.

The products sold are those that are used daily. Generally MLM is done by the companies that are offering products of regular use, such as, soaps, detergents, car wash, containers and cosmetics. This is not an exhaustive list, it's merely a sample.

The convenience of shopping is another strong feature of MLM. Generally, MLM supports online shopping and at times even people network makes the shopping process easy. The distributor goes to the customer’s house, workplace or wherever it's convenient to both the seller and the buyer.

The key features of MLM include networking, flexible timing and convenience.

Networking is the backbone and the soul of MLM. Word of mouth and trust play major roles in the success of MLM. People known to the distributor trust him or her recommendations and try out the products. If the products do have the impact on the customers, then these customers most often recommend these same products to other people they know. And so the snowball rolls.

There's nothing quite like the flexibility of working for yourself. A MLM distributor can work for as long as he or she wishes to. Therefore, the time, money and efforts to be invested in MLM is totally on your choice. You may pursue it full-time or part-time as suits you.

Along with the convenience of flexible timings, MLM distributors generally work from home. They don’t have to show up in the office daily and they can work the hours that fit around other important things in their life.

Startup capital is usually very small as a MLM distributor. Therefore, you run little financial risk. But, do measure the risk-return ratio before venturing into any MLM business opportunity.

Is this a get rich quick business? NO. It takes a lot of time to grow in MLM. But, if you are determined to succeed there is nothing to stop you. Results will show.


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