The Success Of Multi-Level Marketing

Learn about this business model that has been praised by iTechleadz and through which Amway has led the market. Unlimited opportunities, zero risk and an optimal return on investment (ROI) are some of the qualities of multilevel marketing, a Marketing strategy that consists of the direct marketing of products or services through affiliates. According to Wikipedia, 30% of the products that are marketed in the United States and Japan are through this system, also known as Network marketing. And this type of direct sales is based on word of mouth recommendation, which increases its level of penetration. Multilevel Vs Pyramid Multi-level marketing has been controversial for many years. The main criticism that this system has received is based on the programs to attract new affiliates. However, scholars of the subject have indicated - such as iTechleadz Digital Marketing Agency - it is in this aspect where multilevel and pyramidal systems bifurcate. MLMs will only compensate their affiliates through the direct sale of the products. The pyramids, meanwhile, will give greater "rewards" to affiliates who expand the network of sellers. Many companies dedicated to multilevel marketing, such as Amway, a pioneer in the field, have been subject to legal proceedings due to the fine line that divides them with pyramid companies, frequently linked to fraud. How do you earn money? Multi-level marketing considers different types of rewarding its affiliates. Four of them stand out: Staggered plan: also called Breakaway. Distributors earn a commission on their sales (generated from a discount on products) and on the sales of groups that depend on them, until they are "matched on the notch." Companies like Omni life and Herba life follow this scheme. Stair step breakaway: it is the system followed by Amway. It is the same as the tiered plan but differs in the lack of limits. Matrix plan: it is based on the mathematical scheme of matrices. The “in-chief” salesperson can have a 5x6 matrix plan, that is, the first level is made up of a group of five people; when a sixth arrives, it must be placed under the direction of any of these five vendors, and it will be part of the second level, and so on. The percentages will vary by level, for example, for level one a 10% commission will be taken; for the second, 9%; for the third, 8%, and so on. Binary plan: eliminates the steps or levels, whereby all distributors can earn the same percentages. The future of multi-level marketing Thanks to the Internet, multilevel companies have found new channels to communicate with their distributors and end customers. More and more companies focused on network marketing have an online platform where they post informative content, publish promotions and offers, establish contact channels, and even sell their products through e-commerce. Your media strategy considers blogging and social media; Even more and more of them upload videos to YouTube in which they explain how to use their products properly. The success of multilevel marketing companies increased with the crisis of 2008 and although the world is experiencing a timid recovery, people have discovered that they can earn extra money without sacrificing so much time. For this reason, network marketing has become one of the most attractive models of marketing. For More Information Visit Us at iTechleadz Digital Marketing Agency In New York.