Mlm Developer Verified Company

In multilevel marketing, a direct sales or a B2C (business-to-consumer) company sells products or services to individual sales representatives who often act as their own small business owners. In turn, these representatives focus on selling a product or service directly to consumers, normally without a storefront. The independent distributors within the MLM structure act as sales reps, brand ambassadors, or micro-influencers.

The structure of an MLM business may include a flat hierarchy, which means there are only a small number of levels between the top executives and the newest members. Some roles within an MLM business model may include CEO, distributor, sales representative, and sponsor or recruiter. Usually, there is a compensation plan in place. Commonly, when a sales representative at the bottom level makes a sale, each person above them also earns a portion of the income. Sales representatives within MLMs are not paid hourly but instead receive structured commissions at all levels. While recruiting new distributors is the focus, the representatives also earn money by selling the company's products.

The sales teams for MLMs often attract women, young mothers, or those seeking alternative employment. MLM companies recruit former satisfied customers to sell with the promise of independence and new business opportunities. Part of the strategy of an MLM business is the concept that customers may have an easier time trusting friends and acquaintances who act as representatives rather than strangers selling the products. Representatives who use their communities as their customer base may also find that their friends and family are quick to support their business ventures.

Some popular ways that goods are sold in MLM include:

• farmer's markets and fairs

• online events

• social media groups

• social media marketing

• home visits

• word of mouth

• Influencer marketing

• viral marketing

• in-person or virtual parties