Sunday, January 11, 2009

Exposing Network Marketing / MLM

By MLMAbsolute

MLM in Short

In short, MLM can be defined as a business that engage in Multi-level Marketing. In this type of business, there are various levels of distributors. These distributors of the company represent the company to bring the company's products to the individuals of the public.

Independent, nonsalaried salespeople of multi-level marketing, referred to as distributors (or associates, independent business owners, dealers, 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 that purchases products from the parent company regularly, or by recruiting a group of downlines whom in turn also builds their customer base, thereby expanding the overall organization. Additionally, distributors can also earn a profit by retailing products they purchased from the parent company at wholesale price.

Distributors earn commission from their personal sales effort as well as the leveraged effort of their downlines. Commission is paid to distributors based on the companies' compensation plan. There can be multiple levels of people receiving commission from one person's sale.

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