What is MLM ? Multilevel marketing is a strategy some direct sales companies use to encourage existing distributors to recruit new distributors who are paid a percentage of their recruits’ sales. The recruits are the distributor’s “downline.” Distributors also make money through direct sales of products to customers. Amway, which sells health, beauty, and home care products, is an example of a well-known direct sales company that uses multilevel marketing.

MLM Terms: Upline: The upline consists of the representative sponsors who came in before you. For example, if rep A recruited rep B, who recruited rep C, who recruited you, your upline is C, B, and A.

One reason that direct selling gets a bad rap is that many representatives use hype and sometimes deception to lure in new recruits. This leads many to believe that the MLM companies themselves encourage this behavior, when in truth, they don’t. Legitimate MLM companies want you to be honest in your dealings with customers and potential recruits. If you love your product, your enthusiasm is enough to promote it. Just make sure you’re not over-the-top or making exaggerated or false claims.

In terms of economic background, MLM customers profile according to the products or services being offered, but generally trend toward a middle-class audience. Most people can afford to purchase Tupperware or Mary Kay, and may want attend a party to check out the products regardless.

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How does the Board MLM Plan work? The way the Board MLM Plan works is simple. You, however, have to understand it for you to be able to maximise it efficiently. A blank board is usually given to you when you join this Cycle Plan and is required that you fill in your associates. The Board plan is limited in both width and depth depending on your choice of a cycle. You might be allowed sponsorship of just two members on the first level and then with only a depth of two levels, you will have a completed matrix of six members and you will be compensated.

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