Usually, you buy anything you need in a shop, mall or some outlet. Today you can even order for these goods online. But another way of selling goods is through a network of distributors. This is also called as multilevel marketing or simply MLM.
These direct sales or network marketing involves several people by building a chain through recruitment. The first step is you may be invited by some consultant, another distributor or the maker of some product to become a distributor.
Once you join the scheme you will be told that you can earn money through the sales of the different products as well as through recruiting other people. This new distributor becomes a member by buying a product and in turn sells a few products and recruits new distributors.
You can take a share from the money generated by the distributors recruited by you. These are called you’re downline. Whatever business they do in the future will be shared with you as your profit. These recruits, in turn, bring in more distributors and they can take a share of the profit that these new distributors make by selling products and/or recruiting more people.
There is an up line too in this MLM scheme. Your upline will be the people who recruited you and the ones above that who recruited that person.
The income is not only from selling products but also through recruiting of new people. This chain continues and higher the number of people joining as distributors higher the amount of money you can earn.
Hard work is needed in any kind of job or business. So here also you need to work hard in both selling your products as well as recruiting more people. You do not have to invest much for joining this scheme. Whatever fee you pay for joining may be compensated by way of the products you are given for personal use or sale.
So you do not lose much unless you do not sell things or recruit new distributors.