MLM or multi level marketing is a method that many direct selling companies utilize for pushing their preset distributors to employ new distributors who are paid a commission amount of their recruits’ sales.
The recruits are called the “downline” of the distributor. The distributor earns money via direct sales of the goods to consumers. Amway is a perfect example of a direct sales company. It sells beauty, health, and home care products.
There can be thousands of members in a multi-level marketing system, but only a few make meaningful earnings from their attempts, demonstrating a likely pyramid scheme. Since MLM is legal, the FTC has been inspecting MLM companies for many years and has found a lot having uncertain legal practices like operating pyramid schemes.
How is commission calculated in an MLM weight loss system?
When it is about making money through multi level marketing, many programs handle their downline commissions and status by the estimate of personal volume (PV) points. The majority of MLM schemes handle it this way in that commissions are given on the basis of points allocated to a product instead of the whole sales total. For instance, if a product sells for $100 and has 50 PV, then the commission amount is estimated on the $50 acquisition only. Hence, if a commission rate for a product is 20 percent, then it would produce a $10 payment to the sponsor that is 20 percent of the $50 commission.
Let us now talk about some businesses that utilize the weight loss MLM strategy.
- First Fitness Nutrition
FNN was established in 1989 in Texas, United States. Lee Causey and Nigel Branson were the founders of the company. First Fitness Nutrition provides a wide range of weight loss supplements and CBD Oil based products plus a petite range of body and skincare goods.
Their key offerings in the weight loss category comprise packs, capsules, drinks, and meal replacement shakes.
Shaklee is another weightloss multi level marketing business. It was established in 1956. The company claims to offer 100 percent quality and safe products to its customers.
They offer tea, meal replacement bars, weight loss shakes, and metabolic boost capsules.
- Forever Living
Forever Living has been around since 1978. It was founded by Rex Maughan, who wanted to provide the most excellent consumable goods to the people. Forever Living produces and distributes their aloe vera products that they endorse as being 100 percent environment friendly.