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What Is MLM?

Tips and Resources to help you be successful! What is MLM?
Multi-Level Marketing is a system of sales distributorship, where you profit not only from your own commissions, but also receive a commission on the sales of other salespeople you recruit. It is this refered commission that makes MLM such a profitable business plan.

Let's have a quick look at an example;

If you are a sales representative for a company, say XYZ Inc., and sell a $1000- of product a month. Commission of 10% will give you a $100- bonus each month. To make more money, you have to sell more product. But if XYZ Inc. work as an MLM, and still paid 10% but broken up as 5%, 3%, & 2%, then for your commission would be $50- per month on the $1000- sale. Don't Panic!!! Yes we are making less, but now we have two ways to increase our commissions, we can sell more product, OR recruit other salespeople. If you manage to recruit just three other salespeople, and they also sell a $1000- of product a month, then your commission will be $50- from your sales, and $30- each from your downline(recruited salespeople) sales, or $90-, for a total of $140-. So we are better off already, and still only selling a $1000- of product a month ourselves, but now the fun bit starts. The salespeople you recruited also decide that they would like to increase their monthly income, and each of them recruit three salespeople as well(for this example we will assume that all distributors sell a $1000- of product a month). Now your monthly bonus is $50-, plus $90- from your recruits, and we also get 2% of each of their recruits sales, in this case $20- by nine salespeople, or $180-. Thus each month you will receive $320- for selling only the original amount of product, better than 3 times what we got under a direct commission system.

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