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How does multilevel marketing work?
In multilevel marketing, a direct sales or a B2C (business-to-consumer) company sells products or services to individual sales representatives who often act as their own small business owners. In turn, these representatives focus on selling a product or service directly to consumers, normally without a storefront. The independent distributors within the MLM structure act as sales reps, brand ambassadors or micro-influencers.
Is multilevel marketing legal?
Multilevel marketing is legal in the U.S. and most countries. It is banned in a handful of countries, such as Bangladesh, China and Saudi Arabia. While legal in the United States, the MLM business practice is often considered controversial because it can use predatory recruiting techniques and unpaid labor of its sales representatives. Critics say the MLM business strategy has many similarities to a pyramid scheme, which is illegal in most countries.
Examples of businesses that use multilevel marketing
Even with controversies, several MLM companies have proved to be very profitable. One of the most profitable MLM companies is Amway, which was worth $8.4 billion in 2020.
Some other well-known companies that use multilevel marketing include:
- Mary Kay
Stramasa – The Multi Level Marketing Company For You
There are many reasons why choosing Stramasa as your Multi Level Marketing Company is the best investment you can make. Our combined industry experience and passion to help your business grow is unmatched. Let’s plan a call so we can get to know each other.
We have the right software, tools & solutions to match your needs.
CRM Software & Cloud Computing Solutions
Team Collaboration & Documentation Software Tools
Open Source Marketing Automation Application
Oracle Marketing Automation Solution
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For our company, being a leading ESG Communications & Digital Marketing agency and double minority-owned company, being socially responsible means being a part of meaningful change. We aim to lead the way in Environmental, Social and Governance (ESG) efforts for our clients through CSR & DEI marketing & communications, celebrate diversity in our team and support our entire global community – not just in how we do business around the world but also in how we help other businesses be a good and responsible corporate citizen.
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Our industry experience & market insights make the difference
With any industry, understanding how to most effectively approach the market is crucial to growing a business. If you’re looking for help from a digital marketing agency it pays to choose one that already understands your industry and your customers. Take a flying start with Stramasa as your B2B digital agency partner thanks to our industry insights, local & global learnings and understanding of your ideal brand positioning for your target audience in your sector. We’re always eager to deepen our expertise & learn about new industries so let’s connect!