Network marketing, direct selling as it is also called, is where companies offer their products or services directly to the consumer through independent distributors, bypassing the advertising itself and thus eliminating the chain of intermediaries that in a traditional distribution system make the product more expensive.
The products sold by companies dedicated to multi-level marketing or MLM as they are also called, are not available in stores, supermarkets, pharmacies or traditional businesses. You can check my reference on this site. So people who want to start a business with these companies must acquire the personal franchise. This allows them to be able to sell their products, consume them and get more promoters who will belong to their distribution network. They get commissions on their own sales and on the sales of all the distributors or distributors of their distributors, who belong to their marketing network, calculated in 8 levels. It is in the interest of everyone in the company and the people who sponsored them to make sure that the new team members succeed in a win-win strategy.
Proponents of multi-level marketing point to many advantages of this venture over the traditional business. Namely:
- No need for high investment capital to start.
- Great flexibility in the schedules, it can be carried from home or in parallel with a traditional job until the necessary income is reached to live in the multilevel.
- Is carried out without employees, there are no fixed charges such as rent, telephone, electricity, commercial material, etc.
- No bosses, "you are your own boss".
- You work as a team, the people associated with a marketing network are partners.
- Linear and residual income are obtained, the former is generated by own sales and the latter is the result of downline sales.