Explaining Multi-Level Marketing!

What is the MLM business model?

Multi-Level Marketing (MLM) is a system of direct sales business in which independent representatives offer a company’s services and products to the customer. This unique system of business allows a representative to promote the business and sales by recruiting and training the representative to promote the business by making good sales, thus, earn revenue through the commission of sales made by the representatives. In India, there are many companies that offer the best MLM software in India.

The concept of MLM can more deeply be understood by understanding some of the following terms, which are used in the context of this business system:

Pay Model

This business concept can fetch your revenue in many ways. You’d be able to earn through the sales made by you. You are eligible to earn commissions on sales made by you and you are downline. Numerous companies based on the model of MLM pay their representatives rewards, increment commission, and many extra benefits depending on the sales carried out by you. The MLM provider companies cater to satisfy your need of accessing effective MLM software in Delhi.

Sponsor

The sponsor is an existing representative who invites another representative into the business. Example: Old representative ‘X’ invites ‘Y’ and him as a part of the business, then ‘X’ is the sponsor and is liable for preparing ‘Y’ for conducting and handling business. 

Downline

Your downline refers to the representatives recruited underneath you. This includes individuals you've recruited as well as the ones your downline has recruited into the business. 

Recruit

It's a representative brought into the business by support as another representative. The representatives are prepared by their support called members of his "upline”.

Upline

The upline comprises the agent or representatives who came into the business before you. For instance, if agent ‘X’ enrolled the representative ‘Y’, who further recruited representative ‘Z’, who later recruited you. Then your upline would comprise of X, Y, and Z.