What is a business multilevel?
11 March 2009 - 17:39
A business multilevel (also known as marketing multilevel or network marketing) is a model of business based on a network of salesmen or independent distributers, where a person (salesman or independent distributer), obtains gains of money through:
- the commercialization (it buys and sale) of the products that supplies the company to him owner of the business.
- a percentage of the sales that the participants realize who have recruited.
- a percentage of the sales that the participants realize who the people who recruited, as well, have recruited.
The participants whom the first person has recruited, would conform the first level, the participants who have recruited the people who recruited the first person, would conform the second level, and so on.
Following the type of business multilevel, a person could obtain commissions by the sales that the participants who are within their network, until by several levels realize.
Then the objective of the person enrolled in a business multilevel, is to sell the products that the first company provides to him, but also the one to recruit the greater number of participants possible and, as well, to enable them so that these can sell products, and to recruit other participants.
Normally who register in a business multilevel, a small sum of investment must pay, which gives the right him to commercialize products of the company, and to receive qualification, basically in sales.
Many people confuse a business multilevel with a plan or pyramidal scheme, and fear to see themselves surrounded in the same.
Perhaps both share the same structure of business, but they are different concepts.
In a plan pyramid, the objective is to recruit people so that they pay extreme of money to other people who already are within the network, with the promise of which a greater amount will be given back to them the inverted thing.
But so that it is fulfilled, the recruited person must worry with recruiting other people who do just like she.
Therefore, the unique form to make money is recruiting people, reason why the pyramid collapses when no longer there are more people than to recruit.
On the other hand, in a business multilevel it exists of by means a legitimate product, to enter it is not required of much investment, and it does not exist risk of not recovering the inverted thing, because in case it is not managed to sell any product or to recruit to anybody, one can take compensated the inverted thing, by the qualification that I offer the company him or the person recruited that it and, in some cases, by the gratuitous products that the company at the time of register offered him.
Labels: Concepts, Creation of businesses, Businesses multilevel
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Related contents:
- How to choose the business indicated multilevel
- Advantages and disadvantages of a business multilevel
- More well-known and recommended companies multilevel
- Alternatives to initiate a business
