Network marketing is actually a business model. It depends on person-to-person sales by independent representatives, often working from home.
Online marketing businesses need business partners or salespeople to assist with lead generation and closing sales.
An MLM business can sometimes be a one-tier program. Online marketing is for people with strong sales skills, high energy, and those who can make a profitable business with a modest investment.
Before joining any multilevel marketing company, make sure you have researched the company thoroughly.
Multi-level marketing, affiliate marketing, cellular marketing, referral marketing, home-based business franchising, and consumer-direct marketing are all terms used to describe Multi-Level marketing.
There are a lot of marketing operations, some of which have turned into pyramid schemes. Here, the people on the top tier can be able to make a profit from their downlines.
Profit for the salespeople depends on product sales as well as recruiting new members. There are three types of network online marketing:
- Single-tier network marketing
- Two-tier network marketing
- Multi-tier network marketing
Single-tier network marketing
You do not need to recruit other distributors in single-tier network marketing. Income is derived solely from direct sales.
Single-tier network marketing includes pay-per-lead(PPL) and pay-per-click(PPC) affiliate schemes. A well-known cosmetic firm, Avon, employs single-tier marketing.
Two-tier network marketing
Two-tier marketing needs some recruitment. Your compensation does not depend on it. Here, you get compensated for direct sales and for the traffic generated by distributors or affiliates.
Multi-tier network marketing
Some direct sales organizations encourage existing distributors to recruit new distributors in exchange for a portion of their recruits’ sales.
The new recruits will be the downline of the distributor. Distributors get a profit from direct product sales as well.
A well-known multi-level marketing organization like Amway which offers beauty, health, and home care items is an example of multi-tier marketing.
Software Integration in MLM
Software integration means the process of bringing together various types of software subsystems related to multi-level marketing into a single system.
Businesses will work more efficiently by using software integration in MLM. It links various IT systems together.
Software integration will help you to reduce manual tasks, eliminate errors from manual entry, save business time and money, etc.
Some of the MLM software integrations include the following:
The multi-currency option is used by most MLM software companies.
Integration of an e-commerce portal into MLM software.
- Commission Manangement:
Commission management is used to give clear and up-to-date information about incentives and commissions earned and expected.
- Acceptance of multiple payment modes:
In most MLM software, there are a large number of payment options like net banking, cash, DD, cheques, e-wallets, etc.
- Payment gateways:
To make the process easy, use pre-integrated payment gateways.
An e-wallet facilitates payment.
- Whatsapp integration:
You can give customer service by integrating Whatsapp.
You will be able to spread the business globally using multi-language provision.