MLM Works As
a Chain System Of Distributing Products And Services. But Before Understanding
That, You Have To Learn How The Traditional Marketing System Works. Manufacture
Companies Creates Goods at Their Workplace Or Factory. They Use Different Middle
Man Like The Agent, Whole Seller, Retailer, Sales Persons To Finally Send The
Item To The Consumer/Customer. This Includes a Much More Investment And The More
The Number Of Middle Man, The Item Costs More To Buy. To Boost The Distribution,
Compnies And Middle Men Uses Their Profit On Ad Campaigns Which Increases The
Product Retail Price. In MLM,
Middle Men Are Replaced By Many Customer/Distributors And Consumers Buy Their
Wanted Goods Directly From The Company Or From The Distributors. Advertise Is
Not Used On MLM So The Huge Portion Of Profit Used To Be Distributed Among The
Customer/Distributors.
The Profit Against Each Single Product Is Distributed
According To The Mlm System And Company Rules. This Is a Bynary Profit Sharing
System Shown Above Where Company Keeps 20% Profit & 80% Profits Are
Distributed Among All Consumer/Distributors Involved To The Distribution. This
Is Also Called The Direct Marketing System.