While we deal in MLM software, let us look into the definition of MLM, direct selling/ sales.
MLM stands for Multi-Level Marketing. Other terms used for it are “Direct Selling”, “Network Marketing”, “Word-of-mouth marketing”, “Referral Marketing” etc. And a person who sells/markets products using such marketing methods is known as MLMer, network marketer, affiliate, distributor, direct seller etc.
This is Wikipedia’s definition of MLM: “MLM is a marketing strategy in which the sales force is compensated not only for sales they personally generate, but also for the sales of the other salespeople that they introduce”.
MLM marketing has been tremendously successful and made big waves since it penetrated the business world. As a lucrative business tactic, it has helped business owners attain their goals and dreams. Multilevel marketing has gained more popularity among entrepreneurs in the current economy. This is no wonder, thanks to the wide level of MLM marketing opportunities available these days – online, in colleges, schools as well as offices. In fact, committed business owners lobby their small business through multi-level marketing.
Some business enterprises that have gained with multi-level marketing include Tupperware, MaryKay, Avon and Amway among others. Small business owners have incorporated this marketing strategy into their overall marketing plan to achieve more success. With MLM as a major force, these businesses benefit from increased brand recognition, which boosts their sales.
If you practice MLM in your business, you will realise that you incur very minimal or no overhead expenses. As a matter of fact, small businesses that practice MLM do not need employees, as the business structure requires people to work together independently. In that case, you do not need to pay salary and employee benefits. Thus, you will have the benefit of an abundant business life. In addition to this, MLM will also help you use and promote your products simultaneously.
Direct Selling defers slightly from MLM. World Federation of Direct Selling Associations (WFDSA) defines it as “Direct selling is a dynamic, vibrant, rapidly expanding channel of distribution for the marketing of products and services directly to consumers”. Direct Selling can be uni-level – meaning only person selling to the consumer receives commission for the sales generated, and can also be multi-level, whereby more than one person receives commission for the sales generated. This marketing strategy where more than one person receives commission is termed as multi-level marketing or network marketing.
There are many facets to direct sales industry. We promote a non-profit industry education portal called Let’s MLM™.
Instead of repeating all details again here we recommend that you visit Let’s MLM™ portal or its related social pages.
Watch our overview of MLM industry – Let’s MLM