Sunday, January 11, 2009

Exposing Network Marketing / MLM

By MLMAbsolute

MLM in Short

In short, MLM can be defined as a business that engage in Multi-level Marketing. In this type of business, there are various levels of distributors. These distributors of the company represent the company to bring the company's products to the individuals of the public.

The distributors of the company are not paid a fixed pay. They are only paid a commission when they successfully make a sale. Commissions are awarded based on the volume of their personal sales volume and also based on their group volume. These distributors can be termed as independent business owners or franchise owners because they are not an employee of the company.

Mentioned in the previous paragraph, distributors are awarded commissions when sales is made through personal and group volume. Therefore to grow their individual business, distributors will have to source and recruit people to join him as a distributor of the company to increase his group sales volume. Another way is to increase his customer base to increase his personal sales volume.

Distributors earn commission from their personal sales effort as well as the leveraged effort of their downlines. Commission is paid to distributors based on the companies' compensation plan. There can be multiple levels of people receiving commission from one person's sale.

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