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MLM (multilevel marketing) or – a form of nonstore retailers, in which agents (distributors) with the manufacturer’s make contacts with potential buyers. Sell a product, salesperson asks the buyer to find new buyers, who in turn asked to find regular buyers, etc. The agent receives a percentage of the sale of all he created a network of sellers. So, mlm or Network Marketing – means the delivery of goods direct from the producer to the consumer through multi-layered structure consisting of distributors. mlm – is one form of retailing in which each partner maintains its business, because the main problem is not the direct sale of goods, and create a network through which products are promoted and trained team members the art of doing business. Earnings from direct sales (straight commission) Distributors are much lower than that of the reward (team fees) that they receive from sales made by partners of the team. The projects mlm, usually being restricted width of the first line that is stipulated in the marketing plans.
This means that when constructing a network of distributors, each initially at the first level must be a certain number of new buyers, which he personally sponsored. For example, the draft Whole Wellness Club Initially, each distributor on the first level may be only two people, while creating a network of up to 6 levels (ie in your matrix will be 64 people) you can expand your first line of one person, this action You are greatly expanding its business. Limitations of first-line help to create a large and powerful hierarchical organization. mlm distributors are often referred to as a networker, sales agents, managers, authorized representatives or sponsors. Sponsoring means that each distributor takes on certain obligations under the training and support team members. Internet has expanded the mlm opportunities due to the possibility promotion on the Internet and the formation of a distribution network of online marketing methods. For e-MLM-business distributor is granted a commercial website. To create a network of distributors use banner advertising, email marketing or E-mail marketing, which is one of the areas of Direct marketing. The most effective way to create a distribution network to the Internet is in its own automated mailing letters. The main task of mailing letters is that it creates a database of buyers, which make up distribution network.