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What is MLM?

Multi level marketing is a form of direct marketing. Here, the goods do not pass through the layers of intermediaries but reach directly to the end-users. The traditional method of selling through retailers is not adopted here, rather the sales take place through a network of independent dealers.

Multi Level Marketing (MLM) is a business model or marketing strategy in which the distributors' income includes their own sales, and a percentage of the sales group they recruit, which is commonly known as their ‘downline’. Customers can also sign up as a distributor to sell the company’s product. Usually, the sign up fee will be the price paid to purchase the product.


How multi level marketing differ from traditional marketing

Unlike traditional marketing, the goods are sold to the final consumers without the involvement of intermediaries. In traditional marketing, the sales team is recruited by the company but in multi level marketing the dealers further recruit members and enhance the company’s network.


Difference in marketing or advertising

Traditional companies advertise their products mostly through media outlets. On the other hand, MLM companies advertise their product through aggressive sales agents (different companies employ different names but essentially you sale products and recruit downlines. EG: Business owner) and recruitment drives.