MLM Script and MLM Software

Multi Level Marketing?

Can you please describe what you mean by this term?

Public Comments

1. Let's say that I sign up as a distributer / salesman for a widget company. I get a percentage of each widget that I sell. In a multi level organization, the goal is not only to sell widgets but to sign up additional distrubutors. If I sign you up, I get a percentage of all your widget sales as well. I may also get a small percentage of the widget sales of all the distributors that you sign up too.
2. MLM is all about selling & dynamic commissions model. Here is the simplest example: (assume that the alphabets are people & its a Top-Down flow) ....................................... You ..................................... ................ | ........................ | .......................... | .............. ............... A ....................... B ........................ C .............. ................ | ........................ | ......................... | ............... ................ | ........................ | ......................... | ............... .... D ...... E ..... F ........ G .... H ... I ....... J ..... K .... L . ..... | ........ | ...... | .......... | ...... | .... | ........ | ..... | ..... | .. ..... | ........ | ...... | .......... | ...... | .... | ........ | ..... | ..... | .. .. M N .... OP . QR ..... ST .. UV WX ... YZ .. ab .. cd. 1) You sell to A, B & C people. You get the commission for that. 2) A sells to DEF, B to GHI andC to JKL. ABC get the commission and you get a part of their commission. 3) D,E & F sell to M,N,O,P,Q,R people. A gets a part of commission of DEF and you also get a part of sale commission made by DEF. Likewise for G,H,I and J,K,L The tree continues and you keep getting commission as the tree keeps on increasing and sales keep on happening. Even if you did not sell directly to the 100th person in the tree, you will still get the sales commission. Cheers! Addendum: Charisma is right in a way. The model may differ from company to company. But its not necessary that in each sale the buyer pays commission. Because if that be the case then the 100th person will pay a whole lot of commission from his pocket for all other people in the chain much more than the cost of the product being sold. However, another company commission strategy is that the MLM company pay you "percentage commission" of the "commission" earned by the people to whom you made the first sale. So its the reverse trickling effect. Anywayz ...like i said.. models differ company to company & their strategy. But yes, beware of the companies MLM policy. A lot of frauds happen in companies like this. They sell products, but they close shops when they see their commission model is going to crash.
3. Beware of this if the case is: Person A gets person B to sell, person B pays the percentage of what they sell to person A. The above would be an example of a piramid scheme, especailly if person B has to purchace the product from person A rather than getting it directly from the company. There are Good places where, the compay would pay person A the perecentage of what person B sells. And the percentage does NOT come out of person b's pocket. Make sense?
4. www.freedomrocks.com/19768. Under the business video it has a sample of what MLM does. It takes about 10 minutes. Each company is a little different way of doing it. I have found this way to be very beneficial.