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Multi-level marketing is a system of retailing in which consumer products are sold by independent businessmen and women (distributors) usually in customers' homes. You can set your own hours and earn money based on your efforts and ability to sell consumer products or services supplied to you, the distributor, by an established multi-level marketing company.
The multi-level company also will encourage you to build and manage your own sales force by recruiting, motivating, supplying and training others to sell the products or services. A percentage based on the sales of your sales force would be your compensation, in addition to personal sales.
Multi-level marketing is a strategy of encouraging sales through networking in a pyramid form. That's why it is usually called "Network Marketing" or "Pyramid marketing/selling".
It works in a way that direct sales companies/ persons encourage their existing distributors to recruit new distributors by paying the existing distributors a percentage of their recruits' sales. These recruits are known as a distributor's "downline." All distributors also make money through direct sales of products to customers.
The essence of the ideas incorporated in the title. This marketing concept, implying the creation of a multi-level organization designed to promote goods and services from producer to consumer, using the direct contact of man with man. Income in the form of a commission, is distributed to all levels of the organization. In the traditional situation of retail sales in the store a few vendors are working all day long, usually earning very little in comparison with the income of the company. In multilevel marketing many people are involved in the dissemination of the product. As a consequence, each particular person is doing a lot less work, promoting the product. The complex advertising, sale and distribution of the product - (in other words - the "marketing" of the product) is carried out through multi-level organization or network of people.
Multi level Marketing is a marketing strategy in which the sales force is compensated not only for sales they generate, but also for the sales of the other salespeople they recruit.
A strategy that some direct sales companies use to encourage their existing distributors to recruit new distributors by paying the existing distributors a percentage of their recruits' sales. The recruits are known as a distributor's "downline." All distributors also make money through direct sales of products to customers. Amway is an example of a well-known direct-sales company that uses multi-level marketing.
