What is multi-level marketing business

Multilevel Marketing is a business plan where the company sells its products through non-salaried employees. The company earnings will be on product sales and the earnings of their workforce will be based on the commissions from the sales and through Binary compensations system.

Every MLM company have their own marketing plan, but to brief it, all of them work on the same revenue plan that the income to the workforce will be generated by two channels. One is from the commissions on the product sales, secondly from the commissions of other distributors who joined the company recently.


When you join as a new person, you will be given some guidelines from the company, as to the minimum number of products you need to buy every month. It is important to maintain a constant percentage of purchases from the company to be called as an active member. Once you start growing your customer base, you will then have the advantage of joining new members under your sponsorship which will further increase your income from their purchases.

For anyone to start the MLM business, he/she has to join the company through the company’s website or by an existing member’s sponsorship. Though some companies offer free registration, some may charge a nominal fee for the membership. Now, Let see some features of MLM.

Features of MLM

This marketing plan has the main advantage of work from home at the individuals own convenience. There is very small amount of risk involved in doing Multi Level Marketing than owning or starting your own business. The member will only have to invest a small amount to join and to start selling the products. There is no need to maintain large piles of stock thus you don’t need to incur any operational cost.

MLM Marketing also gives the members a chance to earn high positions such as regional or sales manager after gaining a significant amount of sales figure. Which means a house wife or a person with minimum or no educational background can now call him/herself as a manager.

The success in MLM Business lies in your own skills, which means the ability to communicate will increase the chances of success. There will be no Boss over you and hence you’re not answerable to anyone. As it is a direct marketing i.e. meeting the buyer face to face and explaining about the product and why they have to buy it, it is necessary that you need to develop good communication skills. This step is important during the first few months of the business. Once you start to have the customer base you can then choose to be in touch with them over phone. since your buyers are now confident on you, they will feel comfortable to choose products online and place order with you.

You now know What is MLM business, but the prerequisite for you to enter into it is to have contacts which you can turn as buyers. The many contact base you have, the more the possibilities to gain more profits. Also remembers to check the background of the company and to trust the companies which are well established and are not involved in Ponzi Scheme. Check whether the company is legal operated in India with the compliance of the law or not. By taking these minimum precautions, you can be successful in MLM business.

Related Articles

Now you can see website in Hindi

Click here to see in Hindi