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What is Network Marketing PDF Print E-mail
Mar 01, 2010 at 08:10 PM

   MLM (Multi-Level-Marketing), also sometimes called Network Marketing, essentially involves selling a company’s products directly to the consumer thru networking. Conventional retail selling is left to the brick and mortar businesses. Multi level marketing is implemented via a multi-layered distributor system where compensations by the company are made to the distributors according to the distribution level they are in. Distributors are responsible for the business expansion and the income generation for the company.  

     The products sold are those that are used on a daily basis. Generally, MLM is peformed by the companies that are offering products of ordinary use, such as soaps, detergents, car wash, containers and beauty products. This is not an extensive list, it's merely an example. The convenience of shopping is another powerful aspect of MLM. In general, MLM supports online shopping and at times even people network makes the shopping process easy. The distributor is the one who goes to the customer’s house, office or wherever convenient for the customer.

   The important elements of MLM include networking, flexible timing and convenience. Networking is the core and the soul of MLM. Word of mouth and trust play very important roles in the success or failure of MLM. The customers trust the distributor’s recommendations and try out the products. If the customers are satisfied with the products, they usually recommend them to other people they know.

    An MLM distributor also has the luxury of flexible work hours. They can work for as long as they want to. They can work part time or full time, depending on their needs and convenience. Thus, the time, money and energy to be devoted in MLM is up totally up to the distributor. With the convenience of flexible work hours, MLM distributors also usually work at home. They don’t need to show up in an office daily and they can work hours that complements around other significant things in their life.

   Startup investment is usually very minimal as an MLM distributor. Therefore, you have little financial risk. But you have to assess the risk-return ratio before undertaking into any MLM business opportunity.


 

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