Selling for Others
Network Marketing or Multi Level Marketing (MLM) is a method of product distribution, which allows an individual to resell a line of products or services while at the same time get compensated for introducing other people to the business.
For instance, let’s say I started distributing the products of oriflame, a brand of cosmetics. Apart from receiving a percentage of what I resell on behalf of the company, I also get compensated for bringing in potential partners who are interested in the distribution of the product just like me. In other words, it enables me to build a passive revenue stream on the sales of anyone I sponsor into the business, referred to as my down-liner.
One of the big benefits to network marketing is the low cost of entry. It costs roughly around $50 for a person to sign up as a distributor as he/she has to pay only for the cost of the training materials. In fact, some companies even offer the distributors, their starter kits free. So, there is minimal risk for the distributor even if he/she decides this is not right for him/her. Further if you are a consumer of a product that is sold through network marketing you might as well become a distributor for no other reasons than to buy the product at a discount.
I know you are now curious to find out more on MLM. So please refer the rest of the articles in this section as they will cover different aspects of Network Marketing more comprehensively.