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- Definition of multi-level selling or multi-level business: is a form of multi-level

selling to bring products directly to consumers, through a network of participants


including many branches and levels. In which, participants will receive commissions,
bonuses and other economic benefits from the profits of themselves and other members
in the same system.

- Features of multi-level selling:

+ As a form of retailing of all kinds of goods: A multi-level business company will find
a way to retail the amount of goods through the marketing network system that it has
built.

+ Participants will carry out the process of marketing and selling products under
different levels and branches: goods will be introduced directly by distributors and sold
to consumers in need.

+ Participants enjoy commissions and bonuses: Multi-level sale participants will


receive commissions from two sources: from their own sales and the bonuses of others in
the network they organize.

- The strengths of multi-level business

+ Reduce intermediate costs for manufacturers.

+ Solving the job requirement.

+ Consumers are approached to quality products at cheaper prices than products from
other business forms.

+ No constraints on time or working environment.

+ Unlimited income.

+ Diverse, convenient products for buyer and seller.


- The weaknesses of multi-level business

+ It is very easy to be deformed.

+ Difficult to control in law.

+ Familiar relationships can be broken.

Amway - is a successful multi-level company in Vietnam, most people know about


Amway quite high but only 5 years of establishment in Vietnam. Why is Amway so
successful? The business in the past, present or future always continues that is Health and
beauty. Today we also know that consumers are no longer what they used to be, they
already know certain non-original products they will not buy and which products are
harmful to health, all of which are being advertised. We all know that Amway always
advertises with information such as Vitamins & Minerals... Amway's products are always
aiming for perfection in such products. Secondly, Amway does not follow traditional
business because traditional business is no longer what it used to be, nowadays people
want to buy something or something usually through the recommendation of friends and
relatives. Amway direct sales are retailers that go “talk” to people about their experience
with Amway products. Third, the type of business where we see huge profits is opening
shopping malls and supermarkets. All the people who are succeeding Amway have a
huge consumer base. So if retailers want to be successful, what they do is build a huge
network. Retailers must start from the customer themselves and they must pay more
attention to the product instead of recruiting distributors.

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