Multi-level marketing, also known as network marketing/ direct marketing, is where participants sell products directly to consumers independently, often by word or through direct sales. With different business practices emerging globally, Multi-level marketing reached controversy of whether or not it’s another pyramid scheme. This article will elaborate on understanding what multi-level marketing is.
Within companies, there are multi-level marketing companies that recruit people by promising them wealth and flexible work schedules and its system of distributing products with the support of MLM companies that sometimes would offer training and products to distribute. However, these people are not considered employees of the MLM company but are individual business owners who are recruited to run their distribution network to make revenue. Consequently, these MLM distributors earn money from selling products based on their network of distribution which is then multiplied after another MLM recruiter recruits other people to expand their networking distribution for more revenue. In addition, another controversial topic Multi-level marketing raises is the effect of how manipulative this business practice brings to the distributors of the extended network, especially how 99% of people lose money rather than gain the wealth they were promised by joining an MLM company, and through its reputed pyramidical schemes. Understanding how Multi-level marketing is crucial to financially strategizing income, especially leaving it to potential business owners who want to take the lead in their income; however, also realizing the setbacks and efficiency of multi-level marketing.
__________________________________________________________________________________
Sources & References
__________________________________________________________________________________
For any and all inquiries, please fill out our contact form on our website, or send us an email at theglobalbusinessscholars@gmail.com
Our executive team will be in touch shortly.
Comments