What Is Multilevel Marketing?

These days, probably we have heard about the MLM Business or Network Marketing. But many of us underestimates the effectiveness of Network Marketing. Therefore, we are going to focus on some of the key elements involved in this type of business or marketing.

In this type of business the sales force is compensated not only for the sales he made but also for the sales of the other people. That means we can bring more sales, profits and better connections. On other hand traditional marketing does not allow you to do this thing. Well after you make sales from other people, those people go to your “Downline.” In other words it also known as Pyramid Selling.

MLM is a direct selling marketing. In this type of marketing you are selling companies products directly to the consumers. You can sell products by your own connections and word of mouth and encourage them to become a member for the company’s product distribution.

Historically, this method of direct selling was invented by Dominique Xardel. MLM was exist in the 1920’s and 1930’s. In the 1990, The Direct Selling Association (DSA) reported that 25% members used to grow MLM TO 77.3% in 1999. Afterwards in 2009, 94.2% of DSA were using MLM techniques. Which has grown to 99.6% of sellers, and 97.1% in sells. Some big companies such as Electrolux, Avon, Tupperware and Kurby originally used single level marketing to sell their products and later they introduced their marketing as Multilevel Marketing.

As by talking about numbers, DSA has more than 200 members but it is stated that there are more than 1000 using multilevel marketing in the United States alone. In future these numbers may grow rapidly because of its ease.

Let’s take look at the some of the income levels you expect from this –

In June 9 1998, The Wall Street Journal stated that “Mr. Nakajimas Amway income is now about $2.5 million. In 2012, article about double crowned ambassador Holly Chen told that “Her total haul is estimated by one direct sales magazine at 8 million a year.”

There are so many misconceptions were raised about this type of marketing but in real time, it is fairly one of the greatest way to generate income as well as selling products without taking that much amount of time or hard work. MLM is a simple idea and anyone can start their own MLM business or become a member for those businesses.