Tuesday, 22 October 2019

MLM - Multi-level marketing


MLM czy piramida finansowa?


MLM or pyramid?

MLM is the English Multi Level Marketing, sometimes also known as network marketing. Both multi-level and network perfectly reflect the essence of marketing, because it involves building a network of distributors based on a network of nodes at multiple levels without tradition.

How does MLM in practice?

The company produces a product that sells its partners at wholesale prices. Partners distribute it among their friends or in the immediate vicinity. Such a distributor can create a network of people directly under him thereby extending audience goods, and then the node receives a commission on each sale transaction subordinate sellers.

Does MLM is a pyramid scheme?


Network marketing is not a pyramid scheme, because these are forbidden in Poland legally. The difference between MLM and pyramid is that the manufacturer does not impose restrictions on the possession of nodes own customers, in addition node earns on its sale and subordinate nodes, but do not get remuneration from each newly recruited node.