What Is Multi Level Marketing? Multi Level Marketing Definition Nigeria. A Fresh Profit Focused Perspective.
What is multi level marketing definition?
That question sounds mundane especially if you have been involved with network marketing for awhile.
Thousands of internet surfers are searching for answers to this question every month.
It's because the question, "what is multi level marketing" is not as mundane as it sounds to you, the advanced mlm marketer. Secondly, a lot of people who come online searching for the RIGHT multi level marketing definition are actually looking beyond the question . . . they are actually looking for the right perspective on multi level marketing.
In effect, the question, what is multi level marketing is actually packed with meaning.
In simple words . . . people searching for multi level marketing definition are in reality searching for documentation on the right approach to start, manage, and grow a multi level marketing business.
Therefore, this section takes a look at what is multi level marketing and the best way to promote a multi level marketing business to get the desired result . . . plenty of cash in your bank account.
Multi Level Marketing Definition - A Fresh Perspective
By definition, multi level marketing is an affiliate program concept where a manufacturer sells its products through direct sales representatives who are paid based on two levels of marketing, namely; product sales performance and opportunity sales performance. And these affiliates are referred to as network marketers or mlm marketers. A number of things stand out from the above multi level marketing definition. And they are:
Let's take these points one after the other and reflect on what they mean in order to have a full grasp of what is multi level marketing.
Let's start with affiliate program.
An affiliate program is a revenue sharing partner program set up by companies to recruit independent sales people who market their products for a share of the revenue generated by them. These independent sales people are called affiliates.
Therefore, the essential difference between employees and affiliates is this . . . employees are paid a fixed salary whereas affiliates receive a share of the total revenue generated by them.
Consequently, high performing affiliates earn fat cheques that is far bigger than they could have earned as employees while low performing affiliates may earn very little or nothing at all from promoting the company's products.
The term direct sales representatives means that network marketers are distributors who sell directly to consumers and not to wholesalers.
In other words, network marketing or multi level marketing reduces the length of the distribution chain.
Here's the normal distribution chain.
Manufacturer => distributors => Wholesalers => Retailers => Consumers
Compare this with the mlm distribution chain.
Manufacturer => distributors => Consumers
See the difference?
The multi level marketing business model eliminates the need for wholesalers and retailers as distributors sell directly to consumers.
Consequently, network marketers have opportunity to earn more as the profit that should have been made by wholesalers and retailers are passed on to distributors.
That is why mlm company distributors are called direct sales representatives. And in keeping with that terminology, mlm companies are referred to as direct sales companies. And the good ones are members of the direct selling association.
Now you have at least a practical perspective of multi level marketing definition. And hopefully, what is network marketing is one question you have got answered on this Nigeria mlm network marketing web site.
The next natural question is, "How is the compensation plan of network marketing companies structured?"
How do you get paid?