One of the business trends that is currently emerging in the world is the Multilevel Market, Marketing Networks or MLM after its acronym in English. What is a Network Marketing? Also known as direct sales or network marketing, where companies offer their products directly to the consumer, eliminating the chain of intermediaries that in a traditional distribution system make the product more expensive without any added value. The line of products and services offered by this type of company is very varied, from cleaning products for the home, beauty products, nutrition, to long distance services and credit cards. Even well-known brands create agreements to distribute their products through these companies. Why the Multilevel and Marketing Networks Has Become So Popular?
Although the marketing networks exist several decades ago, the current economy is leading ordinary people to look for other ways to supplement their income or replace them completely. This is where people are discovering that Multilevel is the answer to their concerns. One of the advantages is that an ordinary person without any training or business specialization, can start their own business as an independent entrepreneur from the comfort of your home without a large investment, unlike a traditional business that requires commercial premises, inventory, employees, etc. On the other hand, the independent entrepreneur has immediate access to the entire line of products that the company offers, with a discount to generate a profit from sales. But the most important feature of a Multilevel is that the business opportunity does not end in sales. An independent entrepreneur can share this opportunity with other people and generate a distribution network with family and friends, where both the people involved in the business and the person responsible for creating the flow of products and services will benefit. This characteristic of generating levels is where the name of Multilevel Market is derived from and makes this type of business resemble a PYRAMID. But it is important to highlight the differences between MLM and a Pyramid. The Differences of a Multilevel Program to a Pyramid
The Differences of a Multilevel Program to a Pyramid The pyramid is an illegal business, where the people who entered first will earn more money than those who entered later. In the Multilevel the profits will not depend on the level in which the person entered, but on the amount of goods and services that their work generates. This is why the business opportunity will be as good for a person who gets involved today, as for a person who gets involved within one or five years. In the pyramid, a multiplier effect is generated where a person says two and then those two they say two more, and so on. This generates a large flow of money up the pyramid but no product or service is generated from this money. The profits are generated from the registration of the persons and not from the sale of any good or service. In the Multilevel, money goes to the distribution network and products and services go down. The pyramids are sporadic and are destined to end suddenly, leaving the last people who got swindled. In Multilevel, the most solid companies have decades in the market, with a proven track record of growth. So if you are interested in joining a MLM it is important that the company has a recognized reputation.
