Why Agency system and MLM are similar to the franchise?

Mechanisms that are often confused with franchises include agency systems and MLM. If you do not fully understand the mechanism, it may be difficult to create a contract that matches the actual situation. Therefore, it is also important to understand the difference between a franchise and an agency system or MLM. 

“multi-level marketing” is a method in which a salesperson joins other salespeople to an organization one after another and sells products by a multi-level organization. When a new salesperson joins an organization, a recruitment fee is given, and received is done between salespeople.

The best MLM software company is similar to a franchise. Applicants for sales staff pay an enrollment/qualification acquisition fee to join the franchise and often use a unified name/mark (trademark) when selling products… However, the franchise differs in that it is not a multi-level organization. Still, only a relationship between the headquarters and affiliated stores (one-level organization) and the subscription/qualification acquisition fee under the MLM is mainly used as a recruitment fee among sales staff. Whereas it is distributed, franchise membership fees are also different. The headquarters, in return, only receive them to use the headquarters’ trademarks and know-how.

MLM (Multi-Level Marketing) is very popular and attracts more and more people. But where to start? What to do to make the most money the fastest with MLM?

MLM: definition

MLM, an acronym for Multi-Level Marketing in English, is an economic system based on a product or service marketing through a sponsorship system between sellers. Thus, in addition to training each other, sellers receive a percentage of sales made by their godchildren. We can then assimilate this system to a lucrative word of mouth.

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Most of the time, MLM is based on group home sales accompanied by product tests carried out by salespeople who will then be called VRP. It is important to differentiate pyramid selling in MLM. Indeed, where pyramid selling is illegal since a seller does not market any product but receives participation in each recruitment or sponsorship, MLM limits the pyramid’s number of levels to allow each to be profitable.

Motivate by reward

The award is the most used technique in the MLM systems. Easy to understand, offer a few gifts, bonuses, or benefits to the referrals who have reached their sales goals. This technique does not risk the godson who will appreciate even this encouragement which will push him to assimilate your wishes.

Thus, there is no need to stay behind each godson who will find the motivation to work himself by thinking of bonuses.


For this method to be really effective, you must offer your referrals a few learning sessions to be ready for their work. If you want to help your referral or are one, many personal development methods allow you to motivate yourself. These methods will help you improve your esteem and confidence.

Ben Smith

Mashhap is Innovation about Trends, Technology, Health, Business, Digital Marketing, Reviews, Sports, Life-Style and many more.

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