What is the MLM industry?

multi -level marketing is also known as MLM industry. It is a system in which an individual buys a product with a discount and sells it for a profit and a business opportunity in which other retailers are accepted. Many companies in the MLM industry have selling operations with hundreds of thousands of independent distributors of sellers and recruitment. Most of them consider the plan to compensate as a key indicator of whether the sales organization is in the MLM industry.

In the United States in 1945, most of them considered the MLM industry to create when the California company Vitamin Vitamin began selling Nutrite ™ supplements through independent sales representatives in the new compensation plan. The characteristics of the plan included the required level of personal sale of products, profit from the sale of individuals and commissions for the sale of anyone, and bonuses based on sales and recruitment and conf.sistenance. The commissions were also obtained on recruits of recruits with multiple recruits. ThyMore levels were called downline team leader.

In the typical MLM organization, a potential new team member is presented for the first time to the product or service offered through an independent representative. The business opportunity to sell the product is often introduced with the first sale. Potential sales representatives are generally obliged to purchase a given amount of product and starting kit, participate in training and sell the product to the determined number of new customers. When these requirements are met, a new sales representative is usually released to start starting his own downline.

The company's home office in the MLM industry usually provides a number of activities of the support office. They may include advertising, presence on the web, payment procedure, transport, training and payment of commissions. The home office also often organizes sales and recruitment competitions where performance at the level earns money, awards, travel and uknowing.

Companies in Industry MLM offer a wide range of products through independent distributors. Products include nutritional accessories, cosmetics, homemade products, wine and dishes. Industry MLM also offers services such as prepaid legal services and life and health insurance.

Some companies in the MLM Industry were accused of pyramid programs. There is no real product sale in the pyramid scheme to anyone outside the downline; The profit is only the result of sales to those who have convinced the person to sell. The real MLM organization requires its distributors to sell to those who are out of downline.