Multi level marketing is a marketing structure where independent business owners (IBO) are compensated for reselling products to consumers. You will also have the opportunity to earn commissions on the sales volume of your downline. This type of business structure is also referred to as matrix marketing, network marketing, affiliate marketing, and tiered marketing.
As an independent business owner, your income is based solely on your sales volume and the sales of your downline. You will not receive any medical or unemployment benefits and will not receive a salary. Your financial compensation depends on how active you are in selling and recruiting. Many multi level marketing businesses offer bonuses for high sales volume.
Businesses that use the multi level marketing structure have different compensation plans. Some common plan types multi level marketing businesses frequently use are unilevel, binary, matrix, compressed, stairstep, or hybrid.
Multi level marketing offers independent business owners with flexibility and an opportunity to earn as little or as much as you desire. You earn your income by reselling products or services. Recruiting new independent business owners is part of what can make you successful because you can earn a percentage or royalty each time your recruits make a sale.
Multi level marketing has received some bad publicity and some people mistake these types of companies with pyramid schemes. Although your downline will resemble a pyramid, there is a big difference between the two. A pyramid scheme is used to describe the illegal act of forcing independent business owners to purchase more product than they can sell or by using referrals as the primary way to earn money. A pyramid business model simply means that you earn from both your direct sales and the sales volume of your downline. In a legitimate business, referral commissions are an extra way for you to boost your earnings, but actually selling the product is the goal.
There are resources on the internet you can use to check up on a company before committing to become an independent business owner. The Direct Selling Association has a grueling one-year application process and multi level marketing businesses are required to follow the Code of Ethics to remain a member. The Better Business Bureau will give you a report on the company and you can access their files online to see the number of complaints and whether or not they were resolved. The National Fraud Information Center provides information on internet scams and assists victims in reporting fraud to law enforcement. There are also several watchdog groups that focus on providing the public with detailed information on multi level marketing opportunities.
Multi level marketing has received a negative image because of the publicity surrounding scams, however, there are many business opportunities that are genuine and legitimate. You can find your perfect business opportunity to achieve financial freedom if you do your research and trust your instincts.
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