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Multi-level marketing (MLM), also known as network marketing, is a business model in which individuals sell or recommend products or services through a network of distributors.
This model relies on the recruitment of other distributors into the network, creating several levels of remuneration based on the sales achieved by the recruited distributors as well as those they have recruited.
Here are the main features of multi-level marketing:
Product sales: MLM companies generally sell tangible products or services. Distributors earn commissions on the direct sales they make and on sales made by the distributors they recruit in their downline.
Recruitment: Distributors are encouraged to recruit new members into the network. They receive bonuses or commissions based on the sales achieved by their recruits, creating a hierarchical structure.
Hierarchical structure: MLM companies often have a hierarchical structure in which distributors progress by recruiting more members and achieving certain sales targets. Each distributor usually has a team (downline) below him or her.
Compensation: Distributors earn money through commissions on their own sales and on the sales of their downline. Compensation plans can vary considerably from company to company, with some offering bonuses for reaching certain levels or ranks within the organization.
Controversy: MLMs have been the subject of criticism and legal scrutiny for their resemblance to pyramid schemes. The main difference is that MLMs involve the sale of real products or services, while pyramid schemes focus primarily on recruitment without legitimate products or services.
Challenges: For many participants, it can be difficult to succeed in an MLM due to factors such as market saturation, difficult product sales, high turnover rates and the need to constantly recruit new members to expand the network.
It’s important for people considering entering an MLM to thoroughly research the company, its products and its compensation plan in order to understand the potential risks and rewards involved. In addition, regulatory bodies in different countries have specific rules and guidelines governing MLM activities to protect consumers from deceptive practices.
We at Opportuniweb prefer to remove the difficulties and simplify the concept.
We use the term “business introducer” because people who join our MLM program don’t sell directly, they advise and direct potential customers to our website, which handles all orders. In exchange, they receive a commission on sales generated. They have the opportunity to sponsor other business introducers to earn additional commissions.This means they don’t need to invest in anything financially.
Our program is only 2 levels deep and unlimited in width.
And registration is totally free.
Our site is a marketplace, which means you can add dematerialized content (Ebooks, Audiobooks and other products or services to come).
