For many business people, the thought of multi-level marketing can seem kind of scary. It is often misrepresented as a ‘pyramid scheme’, which can make some business owners weary. Others may simply not have any information about it. With a little education and training, many people find it a great tool for their company.
How Does Multi-Level Marketing Work
Multi-level marketing, also known as MLM, is a business marketing strategy that many companies use to encourage current agents to perform, while at the same time, growing the team by recruiting and training new agents. This tactic of marketing helps boost the company’s sales force not only from the sales of the primary agent, but also from the sales and profits of the agents they have recruited. For many companies, it can prove to be a valuable tool for building revenue, but also for building their marketing and networking circles.
Network marketing is a type of business that is known for its part time and flexible business practices. It is typically based on the recruit’s effort and how far they can go with the product or service. Recruits are required to supply a low, upfront investment, which usually covers some sort of starter kit as well as product samples. From here, recruits are trained to sell the product or service on their own, but are then encouraged to recruit other sales representatives to create a “downline”. A downline is a process in which the original employee is paid for their sales, and also receives a portion of the sales from the people they recruit. As the recruited agents gain business, they can recruit representatives as well as earn revenue on their sales, continuing the downline.
Common network marketing companies:
- Mary Kay
With this course , you will discover the specifics of how multi-level marketing works and how to effectively source agents. For many companies, it can prove to be a valuable tool for not only building revenue, but also for building their marketing and networking circles.
- Know how multi-level marketing works
- Build contacts
- Recruit new agents
- Be familiar with social media and marketing
- Provide training for recruits