Kansas City Missouri Multi-level marketing
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Multi-level marketing (MLM), also called network marketing,, referral marketing, and pyramid selling, is a marketing strategy for the sale of products or services where the revenue of the MLM company is derived from a non-salaried workforce selling the company’s products/services, while the earnings of the participants are derived from a pyramid-shaped or binary compensation commission system.
Although each MLM company dictates its own specific financial compensation plan for the payout of any earnings to their respective participants, the common feature that is found across all MLMs is that the compensation plans theoretically pay out to participants only from two potential revenue streams. The first is paid out from commissions of sales made by the participants directly to their own retail customers. The second is paid out from commissions based upon the wholesale purchases made by other distributors below the participant who have recruited those other participants into the MLM; in the organizational hierarchy of MLMs, these participants are referred to as one’s down line distributors.
MLM salespeople are, therefore, expected to sell products directly to end-user retail consumers by means of relationship referrals and word of mouth marketing, but most importantly they are incentivized to recruit others to join the company’s distribution chain as fellow salespeople so that these can become down line distributors. According to a report that studied the business models of 350 MLMs, published on the Federal Trade Commission’s website, at least 99% of people who join MLM companies lose money. Nonetheless, MLMs function because downline participants are encouraged to hold onto the belief that they can achieve large returns, while the statistical improbability of this is de-emphasised. MLMs have been made illegal or otherwise strictly regulated in some jurisdictions as merely variations of the traditional pyramid scheme, including in mainland China.
The Kansas City metropolitan area is a bi-state 14-county metropolitan area straddling the border between the U.S. states of Missouri and Kansas, anchored by Jackson County, Missouri, and Johnson County, Kansas. Its most-populous municipality is Kansas City, Missouri (KCMO). With a population of 2,487,053 (2018 estimate), it ranks as the second-largest metropolitan area in Missouri (after Greater St. Louis) and the largest metropolitan area in Kansas. Alongside KCMO, the area includes a number of other cities and suburbs, the largest being Overland Park, Kansas; Kansas City, Kansas; Olathe, Kansas; and Independence, Missouri; each over 100,000 in population. The Mid-America Regional Council (MARC) serves as the Council of Governments and the Metropolitan Planning Organization for the area.