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Business model of Multi-Level Marketing

Written by Ashish Kumar

Multi-Level Marketing is an influential business model for marketing products and services. Multi-Level Marketing is a structure in which the business model has a fairly literal meaning where every marketer or distributor is at a level. There are marketers above and below. If a person as a marketer introduces someone in the company will be at the lower level than the person who has introduced him. The sales generated by the marketer will provide a commission to the marketers who are a level above of that marketer. So the profit depends on the sales team’s productivity and effort for every single person.

Many industries have started using the business model of the multi-level marketing business model. Maximum MLM opportunities offer great products. As a promoter one’s work is to recruit more promoters so that more products can be distributed in the market. The idea is to increase customer activity by developing a vast sales force or a large number of promoters.

This marketing structure relies profoundly on word of mouth. It is a great model if you follow the principles here and get hooked way to get to the market. One doesn’t have to wait for someone to die or perform out of the box to achieve a promotion or a hike. Every payout is based on results. The possibility for growth is same and equal for everybody. It is just the matter of the will. It doesn’t matter where one has started but what matters is production.

Some of the few basic business structure is mentioned below.

  •  Small investment.
  •  No boss system. Work is same for every person.
  •  Generally any previous experience in relevant field is not required. A good firm provides constant training.
  •  One can choose either full time or part time.
  •  There will be business and marketing plan in place that distributors can follow.

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