Multi-Level-Marketing (MLM)

Multi-Level Marketing, abbreviated as MLM, is a sales model in which products or services are sold through a network of independent sales partners. These partners earn not only from the direct sale of products but also by recruiting new partners who also sell products and generate commissions.

A central aspect of multi-level marketing (MLM) is its commission-based income model. Sales partners earn a commission on their own sales, as well as on the sales generated by new members they bring into the network. This creates a hierarchical structure where income increases as the team grows.

Another important aspect is direct customer engagement. MLM often relies on personal contact and leverages the social networks of sales partners to sell products directly to friends, family, and acquaintances. This sales approach is usually based on recommendations, fostering a closer relationship between seller and customer.

Example: A cosmetics company using MLM might recruit sales partners who introduce their products to friends and are also encouraged to recruit additional partners. These new partners then contribute to the income of the original partner.

In summary, multi-level marketing is a model based on personal sales and network building. It offers sales partners the opportunity to earn income through both direct sales and building a team of their own partners.