What is MLM or network marketing?

Network marketing - a business, the basis of whichare partnerships. Another name for it is MLM or multi-level marketing. The difference between network marketing and traditional business is significant.

Let us consider in detail what MLM is. The essence of it is that the direct sales company organizes turnover by creating a network of partners that perform the bulk of the search for clients. In this case, people involved in the promotion of goods are simultaneously customers of the company, since they make purchases at wholesale (distribution) cost. Then resell the products at a higher price. The company spends less money on advertising, its customers themselves take care of selling goods to customers.

The percentage of sales is not the only pluswork in network marketing. What is MLM? First of all, this is the company's own business of distributors. Network marketing benefits partners that they get a good reward for their work. So, for attracting new people to the company, active distributors are paid additional compensation for turnover from their entire team. This income is called passive, because once inviting a person, registering it and training, the partner now receives permanent deductions from his work. But often the structure of such a leader grows to tens, hundreds, thousands and tens of thousands of people. The income in this case continues to flow to the founder of the structure. Thus, in a few years anyone can secure a comfortable future.

Many people ask themselves: "What is the MLM business?"First of all, it is a huge work to promote products, to recruit new distributors. But the reward for the efforts made can not be compared with the payment of the usual work. It is in the field of network marketing that now a large percentage of millionaires. This applies not only to European countries or America. A huge number of MLM-leaders in Russia.

Consider, network marketing - what it is, whatterms used in this business? The marketing plan is the rules, according to which all accruals to distributors of the company occur. It identifies all types of income and the conditions under which they are received.

A check is a monetary document with a payment indicated on it. Here, the partner is also indicated, to whom the payment is made and other necessary data.

Auto-concept is a term that has increasingly becomeused in network companies. Particularly active partners are able to fulfill their plan for turnover, defined by the structure, to obtain a car.

What is MLM for most of the population of Russia? Many believe that network marketing is a fraudulent activity, thanks to which especially impudent people want to collect more money in their pocket. In fact, MLM is an opportunity to have a business for people who can not open their company. Any network company is absolutely legal. Negative opinion is formed by the fact that distributors promise new partners "golden mountains". Yes, the opportunity to earn in MLM company is huge, but people forget that first it is necessary to make great efforts for this. And for the first few months the newcomer will mostly hear denials, ridicule and unpleasant statements. But if he crosses this line, he will gain confidence that he will continue to follow the right path, he does not care about the opinions of other people. A person will strive for his goal, because he knows that the company will succeed. And in the future, people who are now mocking will simply envy his victories and perseverance.

So, what is MLM? This is an opportunity that anyone can use. Network marketing leads to financial independence, free disposal of own time. And whether to choose a business in a MLM-company or stay on their previous work is the right of every person.