Defining MLM
Monday, December 28th, 2009As 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.
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