Network Marketing

2933 Words12 Pages
What is Network Marketing?
Multi-level marketing (MLM), also known as Network Marketing, is a business-distribution model that allows a parent company to market its products directly to consumers by means of relationship referrals and direct selling.
Independent, unsalaried salespeople of multi-level marketing, referred to as distributors (or associates, independent business owners, franchise owners, sales consultants, consultants, independent agents, etc.), represent the parent company and are awarded a commission based upon the volume of product sold through each of their independent businesses (organizations).
Independent distributors develop their organizations by either building an active customer base, who buy direct from the
…show more content…
They usually do some personal retailing, which may involve talking to their friends and relatives about a particular product or service. Some organisations encourage the development of a substantial retail base, which is always a good idea. As you will be making a tidy sum of money on the side, you might now want to recommend this business model to some of your friends. After all - they probably want to earn some extra money too! They start at the head of their own business, and they also build up a small retail turnover. They make exactly the same money from that as you do from your own retail business. However, because you introduced them, you also get a small bonus payment from the company by way of a reward for spreading the word. After all, because of your efforts, the company is now making more money.

This first person is a member of your downline. They are on your first level. As time goes on, you will introduce other people to the organization, and these people will in turn introduce a second level and so on. These are all members of your downline, and you are their upline. Your own upline is the person who introduced you to the business. Your upline will offer you help and advice because they won't succeed until they help a number of their downline also to succeed! The more money you make, the more money they make. Clearly your organisation will never be as
Get Access