MULTI LEVEL MARKETING

                   MULTI LEVEL BUSINESS 

                            MLM SUCCESS 

     1 THE MULTILEVEL MARKETING CONCEPT

What is Multi-Level Marketing?

     MULTI-LEVEL MARKETING, or MLM, is a marketing strategy which

creates a down line of distributors and a hierarchy of multiple 

levels of compensation. The sales force is compensated not only 

for their own sales but also for the sales of the people they help 

recruit. Firms, having a large product base, often cannot employ 

equivalent sales force; and believe they would be better off 

without the traditional approach. Hence, they implement MLM to 

survive competition from multi-nationals.

MLM is also known as Network Marketing because it utilizes 

a network of individual customers to hit other potential 

customers. In other words, every individual customer serves as 

a sales repre-sentative.

Multi-Level Marketing Vs. Pyramid Marketing

People often confuse MLM with pyramid marketing; however 

there is very clear distinction between the two approaches: 

pyramid marketing is about getting your money and then using 

you to recruit other distributors; MLM, on the other hand, is 

about moving the product through a larger network of 

distributors so that the business can increase sales volume.

Another difference between MLM and pyramid marketing is 

that Pyramid marketing requires each level to DOUBLE before a 

new level is created so it isn't fair to people lower down in the 

levels and also unethical. MLM, however, awards a commission 

based upon the volume of product sold through own sales 

efforts as well as that of the down line organization.

Since MLM faces the risks of initiating a business that has 

not been tested by the customers is not recognized, people 

prefer to wait a coupe of years before joining. Hence, they also

witness the compa-ny’s track-record and reliability.

STRUCTURE OF MULTI-LEVEL Marketing

Multi-level Marketing follows a significantly different structure 

than Pyramid marketing: the network is divided into parts 

comprising of different number of people. Some parts of the 

network may comprise of lesser people because the initiator 

might not have been able to sign-up more people; however, 

other parts may have flourished due to a hard-working marketing 

genius have good resources. Hence, MLM turns out to be a

fairer approach to income generation.

GROWTH WITHIN MULTI-LEVEL Marketing Firms

An MLM opportunity, having a wide-spread network, brings 

greater growth prospects as members become eager to introduce 

more people. Furthermore, those present higher up in the network 

are encouraged to share their experiences with those subordinating