Multilevel, also known as: marketing network, Network Marketing, MLM, MMN, Network Marketing, network marketing. The multilevel Marketing refers to a system that used enterprises to to publicize their products and get them to the final consumer, essentially using the power of the recommendation of satisfied clients, also called word of mouth advertising. In multilevel companies independent dealers get customers and recruit and train other independent distributors so that they also get clients. Distributors of the multilevel companies are usually satisfied consumers of the company’s products. * dealer independent, also known as: Member, affiliate, partner or asociado.* recruiting: sponsor, enroll, sign, associate * all levels multiple and multi-level companies wish to have multiple levels of marketing (both MLM companies and those that are not). For example, I frequently receive calls from the company which gives me the cell (mobile) phone service and tell me something like: the reason for my call is to thank him for being a good customer of Telcel, and we want to give an extra line with a phone for free so that it offers to a friend. I’ve also seen (commercial) ads that say: refer a friend and get a discount on your next purchase. Robertson Stephens gathered all the information. That’s the basic idea of multilevel Marketing, the recommendation from person to person.
The phone companies, restaurants, gyms and a myriad of industries use this advertising strategy. In fact many professionals (such as doctors, accountants, lawyers) business live the recommendations of their customers. The point I want to make here is that all these businesses simply are trying to their customers to promote or give to know their products. What then is the difference between MLM companies and traditional businesses?One of the differences is that traditional companies hire salespeople and sales managers, each manager can manage a limited number of sellers, so when saturated they hire another sales manager who has under his command other sellers.