MLM Glossary – M

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Marketing Materials:

Promotional tools that can help a particular MLM business in disseminating information about their products or services. Marketing materials bring awareness to consumers and people looking for viable business opportunities. They may include brochures, flyers, manuals and videos about the company. These may also include seminars, training videos and company websites where people can go for detailed information and product literature.

In starting a network marketing business, marketing materials are crucial tools in company and product promotion as MLM doesn’t involve costly advertisements. It depends solely on the hard work of the members in the organization through effective marketing strategies such as training, conferences and distribution of marketing tools.

These marketing materials are the members’ “weapon” in motivating consumers to utilize the company’s products or services as well as encourage prospects to join the business. New entrepreneurs/members are usually provided with marketing materials they need once they sign up as members.

Matrix:

A matrix is a system used in the network marketing industry where members are restricted to a limited number of members on a downline on each level of their organization. However, it doesn’t necessarily limit the number of recruits a particular member can have. In this case, when a member has fully filled-up his downline, a spillover takes place, wherein new recruits will be assigned to the downline to complete the matrix.

In a 5 x 5 matrix system, a distributor has to complete 5 direct downlines. These 5 downlines have to complete 5 members each to complete the 2nd level and the succeeding levels have to do the same until the 5th level to complete the matrix plan. A completed matrix system can guarantee continuous income.

In the event of enrollment of new members after a distributor has completed his level, new recruits will be placed under the downlines with incomplete level to fill out any blank space in the entire team and qualify for residual income.

Multi-Level Marketing (MLM):

Multi-level marketing (MLM) is a business opportunity that enables people to make money outside of a conventional job. Multi-level marketing, also called network marketing, is a strategy by which a company markets their products through a network of independent distributors. Instead of being paid for the hours they work, each of these MLM distributors are paid on the production of their efforts, usually through a compensation plan. Distributors are able to make money for the sales they personally generate, but also for the sales of the distributors that they recruit.

Organizations often choose the MLM business model as a means to promote a product or service to markets that otherwise would have been unreachable through traditional methods. Most commonly, distributors are encouraged to promote the products and services directly to consumers by means of relationships, referrals, and word-of-mouth marketing.

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