What are the different types of network marketing systems?
Network marketing systems, also known as multi -level marketing (MLM), pyramid marketing or direct sales, introduce a hierarchy where managers are not only compensated for their own sales, but also for the sale of other distributors they are able to hire. Most network marketing systems relies on sale and recommendations on oral and relationship recommendations for sale directly to customers. Managers and their downline distributors are therefore able to expand the presence of society. However, most network marketing systems are financial and offer their distributors opportunities. Network marketing systems have different compensation plans depending on society and system. One of the most common and easiest is Unilevel Structure, where sponsors can hire the front line of distributors and receive overwriting from their sale. The depth or number of people that may have a sponsor on board is no limit; Distributors are then encouraged to do the same, and a sponsor canto receive commissions from distributors who are five to seven levels.
The staircase secession plans have a representative responsible for individual and group sales targets. When the numbers are met, the representative then moves one level in the commission structure. Group leaders are considered anyone with one or more downline recruits. The groups that reach their highest sales volume will also break away from their upline. However, distributors on the ladder usually receive commission and overwritten from the detachment group.
Plansmatrix are similar to the structure of Unilevel, except for the number of representatives at the first level. In addition to this number, new recruits are automatically inserted into lower -level downline positions. When the maximum number of distributors is achieved, the new matrix structure is launched. There are usually limited levels of volume and minimal sales quotas for both Unilevel and Matrix plans.
in binThe distributor must have only two representatives; More than two are automatically set in downline positions. With only two representatives, the distributor gives the distributor a chance to start quickly see the commission. The main disadvantage of the binary structure is the problem of balancing two binary legs - most of the plans determine that each binary leg can represent no more than a specified percentage of sales. It is then up to the distributor to motivate representatives to achieve their numbers.