Multilevel Marketing is often confused with a pyramid scheme. It happens when a reseller earns a portion of the profits from the reseller they referred. Thus, they form their own network of resellers. It developed as an evolution of sales models, created by Carl Rhenborg in the 1940s.
Some say that Multilevel Marketing is the formula for wealth because it promises rapid expansion of your business. However, it takes time to be efficiently implemented.
What is Multilevel Marketing?
This type of marketing requires the reseller to have direct contact with the end customer. The success of this new model occurred due to the high profitability for all involved. Because of this, it efficiently attracts new distributors to the company.
However, the reseller receives a recruitment limit. This occurs to prevent them from stopping selling products and earning money only from the percentage of their recruits.
Incentive for resellers
The incentive for current resellers occurs due to the perception of a promotion. Thus, when a reseller attracts another, they put themselves in a leadership or sales manager position. Furthermore, it increases their remuneration.
The freedom that multilevel marketing offers the reseller is one of the most attractive advantages. Because, they can choose how many hours per day they will dedicate to work, the product they wish to sell, and the audience.
Advantages for the company
You may have already noticed that multilevel marketing has the power to leverage your company's growth. It can multiply the number of resellers. Therefore, it also increases the reach of your brand.
In addition, it increases the credibility of the company and its products/services, as the company expands and the number of resellers increases. Companies like Amway, Jequiti, and Herbalife are nationally known for clearly implementing Multilevel Marketing.