![]() ![]() ![]() When a distributor makes a sale, they receive a commission. The company’s sales manager has a small team of salaried employees who recruit freelance distributors, who in turn recruit new partners. The term multi-level marketing refers to the different levels within the pyramid-like organizational structure. Word of mouth is as important as it is in influencer marketing or viral marketing. ![]() Like micro-influencers in online marketing, distributors in MLM influence their friends. Independent distributors are often better brand ambassadors than celebrities are. The idea behind multi-level marketing is to use the distributors’ personal networks for targeted referral marketing, according to the principle: “You’re more likely to believe a friend than an advertising agency.” Most of these recruits are satisfied customers themselves, who are offered bonuses, favorable purchase conditions, and high commissions. In contrast to traditional direct sales, where sales representatives are employed by a company, the multi-level marketing model uses freelance distributors who work full- or part-time. ![]()
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