Lapin HJL Blog

MLM as a business model

Companies follow different business models.  A business model is the process in which an organization generates revenue and profits.   It is ideally how a business operates.  Although the network marketing industry has received some flak over the years, it is a legitimate and lucrative business model.  It operates just like a franchise.  The MLM company’s distributors are given the freedom to build their own businesses.  They are non-salaried but get paid according to the volume of their personal sales and the total volume of sales of their respective networks.  These representatives are responsible for moving the goods from the source to the end consumers.

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