Sunday, January 11, 2009

Network Marketing / MLM In a Nutshell

By MLMAbsolute

What is MLM

In short, MLM can be defined as a business that engage in Multi-level Marketing. In this type of business, there are various levels of distributors. These distributors of the company represent the company to bring the company's products to the individuals of the public.

Most MLM / Network Marketing company pay their distributors a commission based on the sales volume achieved personally and team effort, there is no fixed remunerations to the distributors. Therefore, distributors are also termed, independent business owner and franchise owners of the company.

Mentioned in the previous paragraph, distributors are awarded commissions when sales is made through personal and group volume. Therefore to grow their individual business, distributors will have to source and recruit people to join him as a distributor of the company to increase his group sales volume. Another way is to increase his customer base to increase his personal sales volume.

Different companies adopt different compensation plans. But generally, commissions will be paid out on individual sales and group sales volume. As such, commissions can be paid out to more than one person when one sale is made. This allows an individual to leverage on his group sales volume to increase his income. - 14915

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