What is MLM

What is MLM?

MLM is an acronym for Multi-Level Marketing, sometimes called Network Marketing. As the name suggests, multiple levels of people are marketing a product to consumers. An MLM sales representative (also referred to as a distributor, member, affiliate, partner or associate) gets customers and recruits and trains another sales rep to get customers.

MLM – Used by Most Businesses

Multiple levels of marketing are actually what all companies’ desire (both MLM and non MLM companies). If you’ve ever heard a traditional company announce, “Refer a friend and you’ll receive a discount on your next purchase,” this is MLM. Health clubs, real estate, telecommunications, and countless other industries use this technique.

Making A Product Known by MLM

So what is MLM (Multi Level Marketing)? The main point to understand is that distributing any product means to make it known. MLM and the other four primary ways to distribute a product (Store Front, Direct Mail, Telemarketing, Internet) are simply methods used to make a product known. The MLM industry is a fantastic model. If you strip away all the hype and noise and just look at it conceptually, it is the purest way to move a product to a consumer.

MLM Compensation, Truly Brilliant

An MLM company “starts” by recruiting one person who gets customers and recruits sales reps (just as above in the traditional company). But each sales rep is also given the option to become a manager, who can also recruit sales reps. The MLM company only pays commissions, not salaries; therefore, there are no limitations on the number of sales reps or managers an MLM company can recruit.

More about MLM:

To find out more about MLM, Tim Sales and the MLM training tools he has created, click here: First Class MLM Tools.com.