Multilevel Marketing: maintain the sales force of products and services
Posted: Thu Jan 23, 2025 8:23 am
Carl Rehnborg, a physician, chemist and industrialist, created the California Vitamin Corporation in the United States in 1934. In 1939, this corporation became Nutrilite Products Company, Inc.
However, it was in 1941 that he created a variation of direct sales and applied this new business model to the management he was carrying out in his own enterprise.
The process worked in the same way, without intermediaries, but paid at different levels.
What does multi-level marketing mean?
Multilevel Marketing – also known as MLM or Network Marketing – according to Edmundo Roveri , MLM specialist and author of the book The Evolution of Multilevel Marketing “[…] is a remuneration model used to maintain the sales force of products and services, where the payment of commissions, bonuses or prizes are destined not only to the professional who makes the sale but also to his/her sponsoring line.”
In this sense, the entrepreneur makes a profit by selling bahamas whatsapp data products and services and also by creating his own sales team. In this way, his revenue will be proportional to the revenue generated by the sales made by the resellers who are part of his team.
What are the main features?
Multilevel marketing business model
It is important to present some characteristics of this business model so that you understand it even better:
He works with the sale of products or services
Profit is proportional to effort
Generates continuity
Generates and collects taxes
There is a guarantee of return or cancellation of the deal
Investment in training
It has practices regulated by the Code of Ethics
It plays an important role in promoting new entrepreneurs.
Multi-level marketing vs direct marketing
While in multilevel marketing the distributor can associate with other distributors and thus there is a second remuneration on the part of the company, in direct marketing the remuneration made by the company goes only to the distributor who sells to the end consumer.
Multi-level marketing vs pyramid scheme
A very clear way to understand the difference between them is that, when the profit comes from sales of products or services, then you probably have multilevel marketing.
However, if the profit comes from recruiting people and there is no involvement with the product, it is quite possible that it is a pyramid scheme.
However, it was in 1941 that he created a variation of direct sales and applied this new business model to the management he was carrying out in his own enterprise.
The process worked in the same way, without intermediaries, but paid at different levels.
What does multi-level marketing mean?
Multilevel Marketing – also known as MLM or Network Marketing – according to Edmundo Roveri , MLM specialist and author of the book The Evolution of Multilevel Marketing “[…] is a remuneration model used to maintain the sales force of products and services, where the payment of commissions, bonuses or prizes are destined not only to the professional who makes the sale but also to his/her sponsoring line.”
In this sense, the entrepreneur makes a profit by selling bahamas whatsapp data products and services and also by creating his own sales team. In this way, his revenue will be proportional to the revenue generated by the sales made by the resellers who are part of his team.
What are the main features?
Multilevel marketing business model
It is important to present some characteristics of this business model so that you understand it even better:
He works with the sale of products or services
Profit is proportional to effort
Generates continuity
Generates and collects taxes
There is a guarantee of return or cancellation of the deal
Investment in training
It has practices regulated by the Code of Ethics
It plays an important role in promoting new entrepreneurs.
Multi-level marketing vs direct marketing
While in multilevel marketing the distributor can associate with other distributors and thus there is a second remuneration on the part of the company, in direct marketing the remuneration made by the company goes only to the distributor who sells to the end consumer.
Multi-level marketing vs pyramid scheme
A very clear way to understand the difference between them is that, when the profit comes from sales of products or services, then you probably have multilevel marketing.
However, if the profit comes from recruiting people and there is no involvement with the product, it is quite possible that it is a pyramid scheme.