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Multilevel marketing (also called network marketing), describes systems in which companies contract with individuals to sell a set of products door to door or office to office. It is called multilevel because a contractor can also invite others to work and earn money on their performance.
MLM is a sales system under which the salesperson receives a commission on his or her own sales and a smaller commission on the sales from each person he or she convinces to become a salesperson.
Multi-Level Marketing (MLM) 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 that they recruit. This recruited sales force is referred to as the participant's "downline", and can provide multiple levels of compensation.
Thank you for your invite. MLM is a marketing model where products are sold through direct marketing by independent sales persons who work on free lance basis. They are not on the payroll of the company who's products they sell. They are paid commission on the sales made by them also under MLM model they are expected to enroll more sales person under their team and are entitled for commission on the sales made by the sales person enrolled by them. This marketing model is followed by Amway and World Book Encyclopedia that I am very well aware of.
I rreally and totally agree with you
A Good Question Rahaf ,
Multi-level marketing is one type of direct selling MLM is a business strategy where multiple People are promoting a company product as a representative, distributor or affiliate.
Find here a nice demo about Multiple Level Marketing .
A marketing strategy in which you are compensated for the sales you provide , in addition to the sales of the people you have recruited.
Most of the companies who have chosen the Distributors as their Distribution System are engaged in the Multi Level Marketing. Distributors recruit the sales team which is not part of the regular sales team of the company. Normally they get commission over the sales they made.
The sales force of the company who are getting salaries from the company upon the sales they are making but also they get incentives over the sales made by the Distributors sales team as they fall in the territory of a particular sales person,
It covers different kinds of medium.
It can be equivalent to a pyramid scheme. distributors sell products to the public and earn a commission based on the sales of the people they recruit as well as their own sales.