business MLM

Business of Multi Level Marketing ( MLM )

Multilevel Marketing (MLM): It is selling in stages from independent distributors who have the opportunity to generate revenue in two ways. First, selling products directly to consumers, distributors benefit on the basis of the difference or the difference between distributor price and consumer price. Second, distributors can receive a discount on the basis of the number of products / services purchased by members of the group business for sale or use, including the number of private sales.

History of Multi Level Marketing

Multi Level Marketing (MLM) is found by two marketing professors from the University of Chicago in the 1940s. The first product being sold is Nutrilite vitamins and food additives.
At that time, Nutrilite Products Inc.. is one of the companies in America have been known to use methods of multilevel sales. With an initial capital of a relatively large, an ordinary salesperson earn in two ways. First, the profits obtained from any supplementary food program that successfully sold to consumers. Second, in the form of discounts from the number of products sold by the distributor who recruited and trained by a salesman from the company. As with all forms of direct sales, this method brings tremendous benefits to the market by providing opportunities to thousands of people who may be overlooked or not absorbed in the labor market. MLM is a way that is quite simple and inexpensive for anyone who wants to learn about basic business and sales management.
MLM does give opportunity to everyone, which was originally not taken into account in world trade. This business offers the convenience for everyone, in a simple way, to supplement their income. MLM allows people to do business with products or services that are unique and innovative, bringing them to market without the cost of advertising in the media is very big, and without having to compete in retail stores. A method of retail distribution with a personal touch that has spread to all corners of the world.

MLM business has many advantages, including:

• Relatively cheap capital

For people who want to have income from business ventures, but not thinking about sufficient funds to run it, then MLM business can be a choice, because capital is relatively cheap compared to other business.

• Small risk

Because the cost to start relatively small, the risk posed by the failure in this business will be relatively small also.

• The potential for high-income large enough

In MLM business there is usually a form of reward for the member who has achieved a certain level. Thus, when a Member is leading in promotion and marketing, he will easily get a lot of ordered items and also the network (downline).

• Can be run as a sideline

For people who want to do business, but do not have enough time to run his business because he was busy with routine work, then the MLM business can be a choice, because it usually is not too time consuming.