Investment MLM plan is different from other MLM plans. In this plan, people make an investment in the company and the company pays them a daily based percentage return. This fixed daily percentage return is called royalty. The percentage depends on the amount invested.
It is more or less like stock market investment, except that you do not get a share of the company. This plan offers a great opportunity for people to generate an indirect income. And this is a more suitable plan for people with no experience in the Multi Level Marketing business. Unlike other plans where you have to recruit associates and develop down-lines, this plan lets you earn income by making an investment. The scheme of investment changes from company to company. Some companies have the amount to invest fixed while others have a set minimum amount for investment.
Multi Level marketing companies which follow the MLM Investment Plan offer a daily based percentage to the down line members on the basis of their investment. This is one of the fabulous money earning platforms for new members after investing some money at once.
MLM companies usually offer this plan along with other regular MLM plans. So, a member who opt for this plan first makes an investment.
The company then pays a fixed daily percentage return to the member, i.e., the investor. It is as simple as that. The investment and returns are fixed by the company, but also in accordance with government regulations.
The investment is sometimes called top up and the daily percentage return is called royalty. The company invests the top up payed by the members in its business. So, it does not put a burden on the company to pay back royalties.
It also helps the company in raising the required working capital. This is how it works for the company. As for the member who makes the investment, it works in that it lets him earn a better return than conventional investments or bank deposits.