Multi-level marketing is the most common form of network marketing. Distributors earn commissions from their own sales and the sales of the people they recruit, creating multiple levels or “downlines”. The idea is that revenue can be generated from the sales activity of your entire team, not just individual sales.
Sales and Recruiting: Distributors are encouraged to sell products and recruit others, earning commissions from both activities.
Downline: You build a downline of recruited members, and you earn from their sales in addition to your own sales.
Commissions: Depending on the structure of the compensation plan, your downline earns income at multiple levels.
Examples: Amway, Herbalife, Forever Living.
Advantages:
Potential for residual income through your downline efforts.
Can create a larger and more sustainable income stream over time.
Strong mentoring and team building opportunities.
Disadvantages:
Recruiting can be very focused, leading to challenges if you don’t enjoy that aspect.
Both personal selling and team management require significant effort.
Complex compensation structures can be difficult to understand.
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