Multi-level marketing (MLM), also known as Network Marketing, began more than 60 years ago as part of the direct selling industry and has served a significant role in the introduction of many new consumer products and services to the marketplace. MLM has had particular success as a vehicle to introduce many of the “new to the world” concepts in natural health products, weight loss and skin care products that we now consider commonplace in our everyday life.

MLM is a marketing strategy that compensates promoters of Direct Selling companies not only for product sales they personally generate, but also for the sales of others they introduced to the company. The products and company are usually marketed directly to consumers and potential business partners by means of relationship referrals and word of mouth marketing.

Independent, unsalaried salespeople of multi-level marketing, referred to as distributors (or associates, independent business owners, dealers, franchise owners, consultants, independent agents, etc.), represent the parent company and are awarded a commission based upon the volume of product sold through each of their independent (organizations).

Independent Distributors develop their organizations by either building an active customer base, who buy direct from the parent company, or by recruiting a downline of independent distributors who also build a customer base..

Independent Distributors earn a commission based on the sales efforts of their organization, which includes their independent sale efforts as well as the leveraged sales efforts of their downline. This arrangement is similar to Franchise arrangements where royalties are paid from the sales of individual franchise operations to the franchisor as well as to an area or region manager. Commissions are paid to multi-level marketing distributors according to the company’s compensation plan. There can be multiple levels of people receiving royalties from one person's sales.

The MLM industry currently consists of well over 20,000 companies worldwide, with sales of more than $2.80 Trillion annually with approximately 130 million participate in this industry as independent sales people, and the number is growing every day as more and more individuals take part in the entrepreneurial explosion that is reshaping every sector of the economy.
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