GIG-OS ENGLISH: What is MLM? Learn to avoid mistakes when choosing a company!

What is MLM? Learn to avoid mistakes when choosing a company!

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Now that you are interested in MLM business, you must want to learn the basis to choose a reliable company for yourself.

Then, you have come to the right place.

What is MLM?

This abbreviation stands for “Multi-Level Marketing”. It is also well-known as network marketing.

What is the basis of MLM?

It is based on the promotion of goods and/or services, on direct selling, or both. In other words, people working in an MLM company sell the product and/or expand the company's customer portfolio.

Despite the belief that MLM is about aggressive selling, that is nothing but a stereotype. The main idea of a network marketing company is to sell or to promote its products and services.

What types of MLM are there?

There are three basic types of MLM companies: on-site, online, and a mix of both. While the first involves personal meetings with potential clients/buyers; the second is developed in the Internet (social networks, forums, etc). The third one would include both options.

How can you earn?

You get remunerations for making successful recommendations of the product and/or services of the company; or receive a profit which derives from direct sales.

We can find similar systems in traditional companies such as: “Bring a friend and get a discount".

How to recognize MLM companies?

MLM companies offer high-quality products and services apart from a well-developed marketing plan or program.

How to distinguish between MLM and a pyramid scheme?

Pyramids are fraudulent schemes that can include multilevel structures, but don't follow the same characteristics.

They are based on funds accumulation among a small group at the top of the pyramid at the expense of new people who pay their sponsors for the opportunity to “climb” higher.

Most often than not, these schemes damage the reputation of MLM companies. Both systems are often confused, but there are very clear signs to distinguish them:

Signs of a pyramid: