Network marketing (MLM) is a marketing concept for promoting goods and services. The key link in the MLM system is the distributor. He not only deals with products, but also has the right to attract partners (sales agents).
Network marketing can also be considered as a form of ectoped retail trade. Sales, in this case, are carried out from the buyer. This significantly expands the audience of potential customers.
The idea of MLM. Or a concept.
In fact, the MLM idea is quite simple: the company offers to distribute its products. That is, you, in fact, become a distributor whose goal is to attract other people who will also attract other t. D.
So the distribution network is formed. Its main feature is that a person will receive a percentage of sales of people attracted to him (referral system).
Financial pyramids and mlm
Sometimes network marketing is not easy to distinguish from a financial pyramid and many reviews and sites on this subject created, for example, mgoldex reviews. However, this is not at all bad of them, because the financial pyramids gained negative coloring after the collapse of the well -known MMM.
Modern companies comply with the laws of the pyramids: distributors create networks, teach people and receive in return their commission.
It should also be noted that some financial pyramids can lure under network marketing.
Distinctive features of financial pyramids:
– The promise of superprofits;
– Lack of product;
– Not uniqueness or low product quality;
– Illegal status;
– Payment by virtual money.
Conclusions
Be careful when choosing a network company, take your time, study the company and ask questions of interest to your sponsor.