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Offshore Merchant Accounts for Multi-Level Marketing

Multi-Level Marketing or Network Marketing is a term related to a marketing structure used by some companies as a part of their overall marketing strategy. In this system emphasizes are put more upon the recruitment of distributors than on the sales of products. Multi-Level Marketing forces the marketing of any product by assigning promoters who also assign other promoters for that product. Thus a downlink of distributors and a hierarchy of multiple levels of promotions can be established. Multi-Level Marketing is a combination of direct marketing and franchising. This is based on a top down fashion in which the parent company produces independent distributors and sub-distributors.

The promoter is usually a salesperson who usually gets commission upon the volume of sales by his own effort or by the effort of his downline organizations. Thus, distributors can make money both from their own sales and from sales of those people they recruit. Additionally, the distributors can also earn a profit by retailing products they purchased from the company at wholesale price. Different companies adopt different compensation plans like Stairstep Breakaway plans, Unleveled plans, Matrix plans, Binary plans, Hybrid plans etc.

This Multi-Level Marketing is accused of being illegitimate. In most cases in is seen that a company makes misleading statements that could frighten and force people to take any other product that they do not need. Again the distributors may use unsubstantiated claims about their products to gain higher sales. Moreover they are proved to be guilty of price fixing. Even they exaggerate the probability of making significant income.    

In this Multi-Level Marketing system Motivation is the key factor for a distributor. The success depends on the enthusiasm of its participants. Another factor is emotional attachment of the distributors to their buyers. This is a process of sharing which deals with the direct involvement between the distributors and the buyers. As it is a direct process, the company also gets convenient information about their product through the feedback of the buyers.

Now a days the those Multi-Level Marketing operations are in existence which are offering a decent profit to their members. However, it is now in the verge of ruin because of bad reputation due to the many scams related to Multi-Level Marketing. Another reason for the downfall of Multi-Level Marketing is the crises between the company and its distributors. Many companies encourage their distributors to aggressively purchase products from their catalog which do not have demand in market. Eventually, the company collapses because of its poor marketing strategy leaving behind many unsatisfied distributors with an overstock of poor selling products. 

Still the Multi-Level Marketing industry is operational because of some innovations the business model. In e-commerce this Multi-Level Marketing is now being used with success. Still several products are marketed directly to consumers and potential promoters by means of relationship referrals and word of mouth marketing.

There are 7 key points to follow to successfully do Multi-Level Marketing. They are -

  1. One has to find his passion in marketing.
  2. Then he has to choose his opportunity
  3. Next he has to invest in a prospecting system
  4. After that he has to keep working hard
  5. He needs to develop his skills.
  6. He should generate new ideas.
  7. He has to teach his subordinate promoters to do the same.

Contact one of our helpful account representatives to assist you in the setup of a high risk merchant account or offshore merchant account for a high risk merchant.