Today, many people speculate about how the actual Network Marketing business, or better known as Multi-Level Marketing and this abbreviated MLM. MLM itself is an investment business that involves payment of participants by promising goods or services, especially to register other people in the scheme which makes it the main expected profit from this business. MLM has its own heyday because the system of MLM itself provides benefits for various parties and it is able to attract the interest of economic players increasingly day by day with the establishment of thousands of MLM companies around the world today. To get the fastest growing mlm companies, you can visit our website.
But unfortunately, most of the MLM companies that are found forget the outline of the MLM business itself, which has a clear product. Therefore, MLM companies are sometimes considered negative because most of them are moving as “money game” companies that only prioritize membership, not selling products with a marketing method called multi-level marketing (MLM) itself, which if implemented according to procedures will bring many benefits. This situation makes MLM business tarnished in the eyes of the community and the community itself becomes skeptical of the business.
So, the danger or not depends on the MLM prospective MLM members who will register to the MLM company. Require accuracy before becoming a member and investing some money as a sign of mandatory membership by first researching everything about the company. In addition to researching the company, prospective members are also advised to understand and be aware of the MLM business scheme.
How does MLM work?
Following the MLM business must work. From starting to build networks, retail products and so on to get money. In contrast to money games where members are required to make a first deposit in the form of money, then without doing anything or only in the form of easy money. If you behave like that, then business members who are both investors generally do not know and do not want to know where the company is paying profits. In other words, knowledge of MLM itself is very important before actually entering the world.
Why Do Companies Choose To Use MLM?
With so many negative issues circulating in the community, especially the people of Indonesia about MLM, but there are still companies that use MLM as a means of distributing their products, here are some reasons.
– Low overhead
Unlike retail companies, MLM companies do not need to allocate large funds in advertising to attract customers. As a substitute, funds are diverted to provide a commission for distributors to market products to customers. In addition, companies only need to give a commission to distributors based on the results, namely from the percentage of products sold.
– Low distribution overhead
A typical distribution through retail uses a series of regional, state, city, and local retailers to distribute goods. Each needs to get profit and mark up the price of the goods.
Non MLM distribution channels: manufacturer -> transporter -> wholesaler -> retailer -> advertisers -> customers
MLM distribution channels: manufacturer -> representative -> customer
– High growth rate
A well-regulated MLM company can grow with a growth rate of 20%, 50%, even 100% every month
– Motivated sales and marketing teams.
There are many products that flood the market. It takes a large marketing fund to be able to get a place in the customer. In addition, many products require detailed explanation compared to what can be done on TV ads for 30 seconds.