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What Is MLM

MLM stands for Multi Level Marketing. An MLM company “starts” by recruiting one person who gets customers and recruits sales representatives. But each sales representatives is also given the option to become a manager, who can also recruit sales representatives. The MLM company only pays commissions, not salaries; therefore, there are no limitations on the number of sales representatives or managers an MLM company can recruit. This is beneficial to the company because of rapid expansion by the number of trained sales representatives. This is also beneficial to the sales reps because their income isn’t limited to only what they can sell - they can also earn commissions for having trained other sales representatives. All companies (MLM or traditional companies) have one main characteristic in common: they provide a product or a service that hopefully makes a consumer’s life better. Once a company has such a product or service they need to make it widely known. They do this by distributing it. Distributing a product involves finding customers and getting the product in their hands.