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Inventory Loading

Inventory loading is a term describing a practice some distributors in the MLM industry use. In inventory loading, distributors purchase large amounts of company output. This is done to achieve sales goals and incentives goals, and to retain both levels and status within a given MLM business. In the network marketing industry, the practice of inventory loading is widespread and elicits mixed responses. The act of inventory loading may be beneficial to distributors with regards to ranking and bonuses, but risks great financial loss if the stored products are not sold swiftly enough. The process of inventory loading can cause distributors to purchase company output that cannot be sold, returned, or consumed.

See Also: Front-End Loading, Garage-Qualified

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