Multi-Level Marketing (MLM) in Malaysia

Business is a way of living. It has been proven that business has been there for centuries. It shall be continued for longer and there to stay. 


What Is Multi-Level Marketing and The Explanation Behind It

Generally, multi-level marketing is a marketing strategy where the distribution of business has two or more levels of high commissions. It is up to the company where the commission is set on the par. These people offer the opportunity for you to be involved in selling goods directly to consumers. MLM is also known as network/referral marketing.


MLM actually is an abbreviation for Multi Level Marketing or in Bahasa Malay, is named pemasaran secara rangkaian/rujukan. Then multi level marketing is also known as network marketing where we market products and at the same time we can grow our own business network.


Using Agents and Salesperson

MLM software development

In other words, MLM companies build and manage a sales force by recruiting independent distributors/agents and motivating them to sell products to consumers.


Examples of Multi Level Marketing Brands

Typically, there are items sold and recognized with MLM are food supplements, kitchen utensils, some equipment and beauty products. Among the MLM brands you may know are Avon, Mary Kay, Herbalife, Amway, Cosway, and Tupperware.


Real Purpose of Multi Level Marketing

The real purpose of MLM is to sell products using distributors. So, the company does not have to incur any additional cost for marketing purposes. Supposedly, the business will progress if many MLM distributors succeed in selling products.


How Does Multi Level Marketing Work 

MLM software development

Typically, companies will hire or appoint individuals either as members or distributors to distribute their company’s goods. Next, the member (distributor) will appoint another individual (down line) to form a network selling the company’s goods. The process of recruiting new members (distributors) can be continued up to a pre -determined stage. Members will receive commissions or bonuses or incentives from their personal sales and member (distributor) sales under its network (overriding-bonus). 


What About Non Multi Level Marketing Companies? 

Generally, it appears that in a non multi level marketing company, a sales manager and sales force are hired by the company. Companies are often limited in hiring sales force depending on the financial resources the company has. The development of the company is also limited because it has to depend on the amount of sales that can be generated and handled by the sales force. 


As a result there are neglected customers in product marketing. If the sales force does not reach the set target or does not meet the performance specified by the company, the company can hire another sales force or change the sales force to a manager. This is called “Multi-Width” marketing because the organization is expanded horizontally compared to “Multi-Level” marketing that is expanded vertically.


In Conclusion 

For myself, I have no problem with the MLM business, as long as it is done ethically and in the right way. That’s right, out there there are a lot of bad stories to hear related to the MLM business. But in the end, it’s not all the fault of the MLM business, instead it is because of the greedy human hands and manipulating the MLM system that has been put together fairly. Here is MLM software development


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Mathew Peck

Mathew Peck

Mathew Peck