If you are frequently short with money at the end of the month, joining a business that requires you to sell product is one good option. You earn commission from the sales you make, and the more products disposed the larger income you will get. But the problem with this kind of business marketing is, unlike in multi level marketing business, earning substantial amount of money is not possible for the most dealers, especially those who are in the lower levels.
The reason is products pass through a number of distributors that by the time commissions are to be paid, there are many who need to share the income sales. In business methods like this, the products that come from the manufacturer have to go to the warehouse distributor and then to the area distributors.
They would eventually go to the sub-distributors who will pass them to the dealers and finally to the retailers. The retailers buy the products from the higher level, which in return, buys their stock from their upper level, and so on.
In this type of business, the emphasis is always put on selling. Each level has to fill an order and replenish an inventory by purchasing the products from the next upper level. If the sub-distributors of the distributor did not sell enough products, the distributor still has to purchase stocks from their higher level in order to keep their distributor's status – otherwise, they would lose it. So, even if there are still products in the inventory, the distributor needs to use money from their own pocket to buy stocks for their future sales.
The Multi Level Marketing Experience
The multi level marketing business concept was taken from the above marketing method. However, the emphasis was not on selling products but more on recruiting sales people. It was more than 50 years ago when the first multi level marketing strategy was launched where the products used were nutritional supplements.