MLM is the abbreviation of Multi Level Marketing. This is a marketing strategy or a marketing plan where the sales force is not only profited on the sales, they made, but also on the sales that is made by other representatives, recruited by said representative. The origin of MLM starts from late 1800s, when the concept of travelling salesmen came into existence in 1860s. and the first time J.R.Watkins, a medical company, allowed their sales person to establish their own business. This is where, the MLM that we know today, came from. Multi level Marketing strategy composed of down line distributors recruited by representative; these new recruits make the organization for the representative with hierarchy of multi levels.
There are some other terminologies used for MLM, i.e. Network Marketing and Referral Marketing, not the same traditional referral marketing, because in MLM the representatives are compensated for selling the products. MLM is the way of direct selling.
At many occasions, the MLM is being criticized for certain reasons. The main focus of the criticism is the similarity to Pyramid Schemes, Price fixing of products and initial start up cost. The criticizers also claim the exaggerated compensation plan. Against all these criticisms, the MLM Companies have their thoughts to proof the criticisms are false. For example, according to MLM, the distributors or representatives are paid for selling the products, not for the recruits, and this makes the MLM a legitimate business opportunity.
MLM companies are working all around the world. MLM is attractive due to the freedom they offer to live a life of your choice. MLM is considered attractive for different classes of people and is recommended for a number of reasons by MLM Companies. Some are the here below
MLM offers an opportunity for a person to create an income as an alternative retirement plan or to supplement their current retirement plan. MLM is found attractive for the individuals getting retired from their jobs.
People who are looking for establishing their own business are also attracted by MLM opportunities, MLM offers the representatives to develop their own Organizations under MLM Companies.
There are many people who joined MLM as social activity, where they enjoy a social interaction between different people for the business matters, along with good source of earning.
Many people like to live a life of their own will, they like to get engaged in an earning activity where they are not bound for anything, they are free to go and live anywhere without any issues with their livelihood.
The MLM is also attractive because of the associated rewards. People can earn as much as much efforts they make, by monitoring the Organization under any MLM Company.