MLM Network Marketing Plan

This is actually a vital question while considering to setup a network marketing or MLM Company now first we understand what quite Marketing System we have in MLM:

The oldest and therefore the most successful method of MLM Commission Distribution System which is being adopted by most of the consumable product selling network marketing or MLM companies like Amway, Oriflame, Avon, Herbalife etc. during which company fix some target selling to realize some fixed percentage of commission. It’s an open width program during which a customer can open as many legs as he wants and achieve more and more percentage fix-up by the corporate till he achieves the last level of promotion.

The most successful and therefore the only system in most of the European countries and adopted by Tupperware during which a customer organize a kitty party reception and call his/her friends and relatives during which he/she showcase the products and check out to sell products to them and to show into a distributor of the corporate via Kitty party. This modal of company offers Discounts and Free Gifts to party organizer also within the party.

This process continues to unlimited levels or depths. Also, the plan is easy to understand which helps distributors attract more people to the network. Thus the recruitment or sales increase which also improves growth and business opportunities.

Every MLM company has a plan of action, and a lot of them use a binary compensation plan. Most of the popular companies choose this basic plan with precise planning and proper strategy. The binary MLM plan is a simple strategy, but it only works with a plan and proper organization. This is why companies need MLM software like the intelligent Multi-level marketing software to organize and manage their company and MLM marketing campaigns.

Having had the problem of not making the payouts quickly enough, an Australian telecom giant in 2001 offered a new marketing system called Australian Binary in which a customer can open 3 legs and first two legs will give profit to his/her up line member and the third one will give profit to the sponsored member. At first, the company seemed to be on the right track. The demand for their product was high and it looked like it was going to break all the records that had been set in the past. This made more people to sign up and sell the product. They offered more to new members and less to the old ones and the earlier system offered the reverse. A company could use this system to become more competitive and reach out to a new audience. This system was further adopted by one product selling small MLM Companies to become competitive to earlier setup MLM Giants.

Ever since 2005, many companies have been promoting this system, which has helped many people get rich quick. There are two ways of earning commission - the first one is when a person qualifies and they get the commission of all the people they work with; the second one is when a person breaks the board and they get the commission of all the people they work with.

Most of the marketing systems I looked at were not suitable for one time product selling companies because they either do not work well with small profit margins or they are difficult to understand. Binary system is the only marketing system that is compatible with one time product selling companies because it is easy to understand and easy to explain.