Belong to direct selling ``

MLM:

MLM, also known as multi level marketing, is a marketing strategy to achieve sales through interpersonal communication. This is especially effective in places with vast territory and low population density. Therefore, MLM is very popular in North America and Oceania. Generally speaking, MLM company adopts the membership system, by introducing new users to become members, directly or indirectly calculating the remuneration according to the number of development personnel or sales performance, or obtaining membership on the condition that the development object pays a certain fee.

As a marketing method, MLM is often confused with "hierarchical marketing" (commonly known as "mouse club"), so it has become a Chinese word for piracy or hierarchical marketing in China. The most famous case abroad is Ponzi scheme.

Direct selling:

Direct selling is not "direct selling". According to the definition of the World Direct Selling Alliance, direct selling refers to selling goods and services in a face-to-face and unfixed way, also known as "door-to-door sales" or "person-to-person sales".

Direct selling does not need intermediate channels and fixed sales places, which can reduce the sales cost in theory, but it is often not the case in practice because it reduces the transaction cost and increases the information search cost of both parties.

In single-level marketing, the income of direct sellers comes directly from the retail profits they get from selling goods to the final consumers. Avon has long adhered to this system.

In multi level marketing, direct sellers can not only make profits by selling goods, but also recruit and train other direct sellers themselves. Their income sources include not only their own sales income, but also the income calculated according to a certain proportion of the sales generated by the network under their name, which is the most significant difference from single-level direct sales. At present, most direct selling companies in the world adopt this method.