Recruiting people to become members of a sales force, whilst giving each new recruit freedom to build his own sales force is a multi-level marketing strategy. Actually, there are workshops that offer learning tools, insights and training on how to effectively become a multi-level marketing or MLM sales agent. Mainly because the advent of digitalization has broadened the available opportunities with which to apply well-honed skills as an MLM agent.
Still, for the benefit of those who are not familiar with the MLM concept, let us first have a clear understanding of what multi-level marketing is all about.
What Exactly is Multi-Level Marketing?
Developing one’s multi-level marketing or MLM skills can help you build not only the business you are working for; it will also enable you to grow your own sources of revenues.
Multi-level marketing is also known as network marketing in which a duly licensed business organization sells a product but employs sales agents who can build their own network of sales teams via a recruitment process. This marketing strategy is an alternative to the conventional method of creating a sales department and employing a team of sales representatives,
While the traditional team of sales agents are incentivized by way of sales commission only if they meet the required sales quota, the MLM strategy adds a different twist.
As a networking strategy, there is no specific count on the number of sales agents that the business will employ. Here. the sales teams of a business can grow exponentially, with each member working to sell a product, whilst earning direct commissions from the sales they generated. Albeit the commission is stipulated at minimum rates, the size of their commissions can grow as they will also earn from the sales generated by their network of sales teams.
This denotes that as one’s network of sellers branch out into different levels, sales agents in each level can also grown their revenue sources by continuously recruiting members.
MLM is a Popular Marketing Strategy In India
In India where there’s a huge population of people who can become potential customers, having multiple networks of sales agents working to sell a product is the best marketing approach. That is why a career as an MLM agent is rewarding, since it gives an individual the freedom to sell different kinds of products sold via MLM strategy, whether offline or online.
Still, when looking to sell products online, the government of India requires all types of businesses to comply with the Know-Your-Customer or KYC mandate. Online businesses particularly those that employ MLM as a selling strategy can be vulnerable to criminal elements and their illegal activities, which makes it important for them to institute proper KYC verification processes.
An Example of a MLM Business Website with a Strict KYC Verification System
A website, called JAA lifestyle is offering Indian consumers the opportunity to earn extra income just by watching the ads of different products being sold in Indian markets. This is one way by which marketers make sure that their advertisement are seen by consumers, instead of relying on viewership generated by product-related websites. The strategy is in fact more economical and effective in terms of sales conversions.
In order to grow the size of the audience to which the ads are exposed, the website uses the MLM approach. Moreover,, JAA Lifestyle incentivizes users to build teams of ad viewers by by earning extra from recruiting people they know as team members.
However, the website is KYC compliant and requires a one-time payment of a KYC verification fee. Ir’s important therefore for users to recruit people with valid IDs whose photograph and information will pass KYC verification.