Multilevel Marketing is also known around the world as direct marketing or network marketing. The model is based on the distribution of goods or services. And the gains can arise from the effective sale of products or the hiring of new sellers. Furthermore, may be other modalities in the market.
Thinker Will Marks defines MLM as “a distribution system or form of marketing, that moves goods and/or services from the manufacturer to the consumer through a ‘network’ of independent contractors.” It means that MLM is a system derived from direct sales. An organizational revolution has been consolidated, and can be much more effective in certain niche markets.
But MLM has its risks, though most companies are showing their confidence and willingness to distribute their products and the personalized attention of their customers.
How does MLM work?
Most of the time Multilevel Marketing is used by companies that are manufacturers, distributors or even importers of products or services. They understand the need for a market strategy as well as financial advantages.
Basically, since it is understood that sales success is limited because of the size of the sales force, companies request representatives to broaden their market presence. These representatives seek other people interested in the same position to sell and distribute even more products or services. As reward, the company offers awards to the people they indicate.
New salespeople are given a commission on the sales of each of the nominees. It provides an incentive to seek out other good professionals and their proper training. If the indicated ones recommend others, the process of formation of this system is initiated.
This way, sellers take an entrepreneurial and fairly independent stance, having control over their networks and businesses. But they sell and/or consume products from the original manufacturer.
How does WAS protect you in this case?
MLM is one of the high risk systems that has lower rates of negative situations, but it is hard to say that you are not at risk of being harmed considerably. With this great network system you are susceptible to problems with people above you and below you, and you may suffer from unexpected situations.
Also, with the number of various networks popping up around the world many may end up going wrong and you come out at a loss with your investment.That’s where WAS comes in!
With the insurance developed especially for investors of this business model you are assured in the most varied cases that can occur when getting involved with multilevel marketing. That way you can start building your network without fear that things can go wrong and thus grow financially!