Multi-level marketing (MLM) is a controversial marketing strategy in which the sales force is compensated not only for sales they generate, but also for the sales of the other salespeople that they recruit. This recruited sales force is referred to as the participant’s “down line”, and can provide multiple levels of compensation.
Other terms used for MLM include pyramid selling, network marketing, and referral marketing. Many pyramid schemes attempt to present themselves as legitimate MLM businesses.
Some sources define all MLMs as pyramid schemes; even if they are legal.MLM is illegal in mainland China. According to the U.S. Federal Trade Commission (FTC), some MLM companies constitute illegal pyramid schemes which exploit members of the organization.
MLM is one type of direct selling. Most commonly, the salespeople are expected to sell products directly to consumers by means of relationship referrals and word of mouth marketing. MLM salespeople not only sell the company’s products but also encourage others to join the company as a distributor.
- MLM Software will be Stable, Reliable and will support your growing business needs.
- Our MLM Software will greatly integrate with other application such as Ecommerce Portal, accounting software, billing software and will provide substantial ROI.
- This software will help you to improve Member Loyalty and Retention.