Multi level marketing

Multi-level marketing (MLM) is a 
marketing strategy in which the sales force is
compensated not only for sales they personally
generate, but also for the sales of others they
recruit, creating a downline of distributors and a 
hierarchy of multiple levels of compensation.[1]
 Other terms for MLM include network
marketing,[2][3][4] and referral marketing,[5] not to
be confused with the actual referral marketing.
Differences between MLM and
Traditional marketing
Role of the marketer
Authority to get customers
Unlimited sales reps can be hired unlike
tradiditional marketing
MLM expands vertically and traditional expand
horizontally
 Disadvantages of Traditional Business vs
Network Marketing
• a) Traditional business you will meet all the advertisement cost whether
people buys or not while network marketing it's very simple "
word of mouth advertisement" you only pay when people buys your
services and products.
• b) Traditional business are faced with counterfeit products competing with
original products hence the producer might compromise the price of the
products to compete with the counterfeit goods, while network markeitng
you deal directly with the producer of that product or service you want to
buy. No middlemen or conemen.
• b) In traditional business there is no residual income compared to
Network marketing whereby the compensation plan allows you to earn
after building a large organization.
• c) In traditional business there is less emphasis on personal development,
if there is then this is tilted to support the growth of the organization not
an individualcompared to network marketing where personal
development is the major ingredient to success.
• Based on my experience with network marketing, here are what I consider it's
general advantages/disadvantages: 

Advantages: 

1) You are your own boss and you get to set your own working hours. 

2) Very minimal startup costs compared to starting a franchise/brick and mortar

business. 

3) Established infrastructure/plan. 

4) Regular motivation in form of seminars/cassetes/success stories (depends on

the company). 

5) Presence of a sponsor/mentor to guide you throughout. 

Disadvantages: