What is netork marketing mlm multi-level marketing home-based business 

By Robert Kiyosaki

Robert Kiyosaki author of the Rch Dad Poor Dad books talks about "Why YOU should join a network marketing mlm company.  

Robert Kiyosaki Talks about Network Marketing
 

Multi-level marketing (MLM) also referred to as Network Marketing is a business distribution model that allows a parent multi-level marketing company to market their products directly to consumers by means of relationship referral and direct selling.

Independent unsalaried sales people of multi-level marketing referred to as distributors (associates, independent business owners, franchise owners, sales consultants, consultants, independent agents, etc.), represent the parent company and are rewarded a commission relative to the volume of product sold through each of their independent businesses (organisations).

Independent distributors develop their organisation by either building an active customer base, who buy direct from the parent company and / or by recruiting a downline of independent distributors who also build a customer base, expanding the overall organisation.

Additionally, distributors can also earn a profit by retailing products which they purchased from the parent company at wholesale price.

Distributors earn a commission based on the sales efforts of their organisation, which includes their independent sale efforts as well as the leveraged sales efforts of their downline.

This arrangement is similar to franchise  arrangements where royalties are paid from the sales of individual franchise operations to the franchisor as well as to an area or region manager.

Commissions are paid to multi-level marketing distributors according to the company’s compensation plan.

There can be multiple levels of people receiving royalties from one person's sales.

 

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