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What is multi level marketing?

Multi Level Marketing is known as Network marketing. This is the type of business where franchising and direct sales are combined. This company makes people related to the company in an independent transaction approach. This is an approach in which companies create relationships for people who want to contact develop their business.

Members make their income based on their sales have reached this particular product or service. It also includes sales of the people they have recruited to join the company. Most of the time, the individual who recruited more members and gives a good sales outlet on the product compensate higher because an attempt to make in two different areas.

What is multi level marketing


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There's a schematic of the pyramid, or the Ponzi scheme, which is illegal. Most people associate multi-level marketing schemes of this kind because they themselves recognize themselves as a legitimate business network. Because of the bad image was raised by this scheme, many choose to use their name for their business as  "Home based business franchise " or  "Affiliate Marketing ".

The board received in the process of selling a particular product or service in a legitimate network marketing. There are no gains in what they call "fee registration" or simply recruit you. This type of marketing has always been criticized for the dubious recruitment process where they get their income and profits. They get their sales from members and new members, which is considered the end user of the product and as a distributor.

This critique led to a big change in multilevel marketing at the beginning of the 1980 when many companies began to allow their members to focus solely on marketing and not on the distribution or storage of Products. Most multi-level marketing companies nowadays perform as executing companies by taking the task of delivering the products, paying commissions and taking orders from their customers.

Many people who have become victims of illegal regimes in multi-level marketing needed to buy expensive products, but most of these plans do not last long because most sales are not easily resold .


Well, this is a small short explanation on understanding multi-level marketing, can be useful, if you like this article, do not forget to share it with your friends and please leave suggestions in the comments field below
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