Translated from English MLM (MULTI-LEVEL MARKETING, MLM) - multi-level (network) marketing, so-called multi-channel marketing systems. This concept implies the creation of a multi-level organization in which direct contact is used to promote goods (services) directly from the manufacturer to the final consumer. Each level of the organization receives a certain income - commission remuneration.
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Most often, companies operating on the principle of MLM do not have their own stores. The goods are moving exclusively through distributors, "from hand to hand." In fact, a person becomes a consultant to the firm, advertising it with his friends, relatives, friends, even someone else's people. The distributor receives the difference between the wholesale price of the acquisition and retail price of the sale and, as mentioned earlier, some commission remuneration.
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For the successful development of business, it is important that the distributor itself liked the promotable product. It is difficult to sell something bad quality, especially since finding regular customers in these conditions. Maximum what you can count on is one-time transactions. But if the distributor successfully uses the goods that promotes, he can show how high-quality products are convenient, functional, useful, etc.
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The distribution of goods is not the only task of the distributor in MLM. He should also strive to create its own network - to connect to the dissemination of other interested people. Thus, you can allocate the following directions in the company's employees:
promotion of goods, services;
dissemination of information about business, its capabilities and prospects;
attracting people in their structure (learning to the art of dissemination of information).
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A distinctive feature of MLM is the lack of retail space, which significantly reduces the cost of the company's business. There is no need to rent or buy out the premises, pay for the work of managers, sellers. Even advertising as such is not required. The whole process is built preferably on direct sales. At the same time, each distributor is responsible, receives pleasure from its activities, because he works "on himself."
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Profit is provided both by expanding its own distributor network and by increasing the range of products offered. An important point is the choice of the company where there is a prospect for getting good income. If the company has long existed on the market and covered a huge territory - there is not a lot of chances to earn money in it. It is better to choose a company "on take-off", for example, such that has proven well, is stable, and plans to expand the spheres of activity, the development of new territories. It is in this case that the probability of good earnings is sufficiently high.
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Also should pay attention to the uniqueness of products. If the goods simply have good quality, competitors may appear on the market and set lower prices. But when similar technologies are no longer used in the world - there are all the chances of achieving success in this direction. Naturally, it is worth choosing a manufacturer to cooperate, producing its own products, rather than engaging banal trade. In addition, the goods must be relevant, in demand at the covered territory. And not only at the moment, but also in perspective.
Today MLM got quite widespread. Many companies known worldwide: Canon, Lipton, Gilette, Coca-Cola, Visa, Colgate, etc. applied to this method of organizing activities.
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