What is a network marketing distributor?
network marketing distributor is an independent representative of a network marketing company. Network marketing, also known as multi -level marketing or MLM, uses a marketing strategy that relies on independent distributors to sell its products or services. In addition to selling products on its own retail sales, network marketing distributor is encouraged to develop personal sales organization by hiring other distributors and helping these distributors with the same. The MLM distributor then earns a percentage of sales made by persons in his sales organization, in addition to retail profits from products that he sells to customers.
become a distributor of network marketing is often a matter of signing an agreement and paying a distributor fee. The prospect is approaching or is approached by a network trader who receives a person to the company. The cost of the state with a distributor is usually minimal and the new distributor usually receives an Adonitor KIT, which includes training materials and corporate literature. Some companies offer new distributors paid or free of charge. In some countries, however, it is against the law for a potential distributor to pay any amount of money for joining a network marketing company.
As soon as someone becomes a distributor of network marketing, he can start buying company products at a reduced or wholesale price that can be sold for a retail brand to customers. The difference between wholesale and retail price becomes earnings. Some network marketing companies pay other retail sales bonuses. For example, the company can pay a 10% bonus for retail sales in a given month. This bonus would be paid directly to the distributor MLM. Each company has its own policy for paying commissions for selling a distributor. These politiciansKA is often usually known in the MLM sector as a compensatory or marketing plan and usually includes paying the distributor the percentage of sales at several levels of recruits.
According to the law, network marketing distributors are considered self -employed and are not entitled to the same benefits or protection as workers who are employed by companies. MLM distributors are responsible for paying their own taxes and social security, they must secure their own health insurance and do not receive a sick holiday or holiday. Distributors who violate the rules of the company are subject to the end of network marketing and are not entitled to unemployment benefits. At the same time, network marketing distributor has many advantages of self -service, including deductions of taxes and the ability to set up their own hours without having to bother with the production of their own marketing literature, obtaining products, rents or buy the retail space in which to do business.