Network Marketing Company Example
Administration / / July 04, 2021
It is known as Network Marketing company or multilevel company, (MLM) are companies that market and conduct business in two main senses, Direct Selling and Networks of independent sellers or partners
Sale:
This type of sale sells the products directly to the interested parties, they present themselves to the clients offering them the products, services.
Here the company sends e-mails offering its services or is in person with its clients offering its products, catalogs and other means of promotion.
Partner networks
This consists of the invitation of people or clients to collaborate as sellers, distributors, but independently of the initial company.
The profit is acquired by selling the products at a lower cost than the commercial one but with a profit for the first company. The collaborators work independently.
The promotion is carried out by each collaborator at the cost or effort of it, thus reducing commercial expenses and focusing the promotion on digital media such as the internet.
Thus, multilevel companies or Network Marketing companies, sell the product to their customers inviting them later to be part of said company, having as a supplier of merchandise the initial company.
The profit of the main company is acquired by selling the product at a lower cost, leaving the associates (chain links) to acquire a sufficient profit.
Thus the first seller is on a first level, the second seller is on the second level, the third seller is thus on a third level; thus successively it is advancing until arriving at the last buyer that is the one that will use the product; thus deriving the name of the multilevel company.
It has become a way to sell and promote jobs among people as well as a new marketing system focused on services and products for everyday use.
Example of a Network Marketing or Multilevel company:
The photosiliconic light cell company began to sell imported cells, due to the low cost sells them to a person who is interested in making domestic use of the light system ecological. Later he invites this person to sell cells to his acquaintances, asking her to offer said happiness. invitation to another person who is in a position to do business with plants photovoltaic.
As products begin to be sold, the chain is increasing, both in the sale of installation services and in the sale of products and spare parts for the plants.