MULTI LEVEL MARKETING

Prepared By:By:BHANU PARTAP SINGH IMS PGDM(MM)

HISTORY 
MLM started in the US, in 1959, by business partners Rich

DeVos and Jay VanAndel, originally with just one single product and a new and unique business vision. 

They believed that they should be paid relative to the

benefit the company continued to get from their original work.

member.MLM  Multi-Level Marketing(sometimes called Network Marketing.  The products and company are usually marketed directly to consumers and potential business partners by means of relationship referrals and word of mouth marketing. multiple levels of people are marketing a product to consumers. Multi- Referral Marketing or Direct Marketing). . affiliate.  A sales representative (also referred to as a distributor. partner or associate) gets customers and recruits and trains another sales rep to get customers.

Refer a friend and you ll receive a discount on your next purchase.Sales rep gets customers and trains another sales rep to get customers. multi- . this is multi-level marketing.

. a sales manager and sales reps non- are hired by the company.  Once a sales manager is overwhelmed.THE TRADITIONAL COMPANY  In a non-MLM company. the company can hire another manager or convert a sales rep into a manager.

(nonMulti- .Traditional companies (non-MLM) use Multi-Width Marketing.

 This is also beneficial to the sales reps because their income isn t limited to only what they can sell .they can also earn commissions for having trained other sales reps.The Multi Level Company  An MLM company starts by recruiting one person who gets customers and recruits sales reps with the option to become a manager.  This is beneficial to the company because of rapid expansion by the number of trained sales reps. . not salaries.  The MLM company only pays commissions.

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These three steps are the organic concepts of MLM and are absolutely brilliant. Here s why:  In its organic state one person shares a valuable product or service with another  A person shares a business idea with another  The person who shares the business with another ONLY profits IF the person they shared the business with succeeds. the MLM industry is a fantastic model. .MLM Organically.

2.Manufacturer of Product should have good reputation. 4.Health Products are sold most in MLM.Price should not be over for repurchases. 3.Products should have a authentic presence other than mlm system also.What kind of products are sold most in MLM? 1. .

Criticism Of MLM  The Federal Trade Commission(FTC) issued a decision.  MLM's are also criticized for being unable to fulfill their promises for the majority of participants  The exploitation of personal relationships for financial gain . in 1979 in which it indicated that multi-level marketing was multinot illegal in the United States.  AMWAY was found guilty of price fixing and making exaggerated income claims.

MLM Compensation Plan  Unilevel Plan  Matrix Plan  Stairstep Plan  Binary Plan .

The common goal of this plan is to recruit a large number of frontline distributors and then encourage them to do the same.UNILEVEL Plan As the name suggests. Use only one commission type. . called a "frontline. the level commission type. There are no width limitations. meaning there is no limit to the amount of people one can sponsor in the frontline. the plan allows a person to sponsor one line of distributors.

a representative moves up a commission level. .STAIRSTEP Plan Sales volume is created by recruiting and by retailing product. Various discounts or rebates may be paid to group leaders.  Once predefined personal and/or group volumes are achieved. The original upline usually continues to be compensated through override commissions and other incentives.

MATRIX Plan ‡Matrix plans often have a maximum width and depth. ‡Representatives in a matrix earn unlimited commissions on limited levels of volume with minimal sales quotas. ‡When all positions in a representative's downline matrix are filled a new matrix may be started. .

BINARY Plan oIt allows distributors to have only two front-line frontdistributors. oThe primary limitation is that distributors must "balance" their two downline legs to receive commissions. oThis "spillover" is one of the most attractive features. .

MLM Companies in INDIA Attitue Trading (P) Ltd. Amway FLP Tupperware DXN RCM Modi Care Oriflame HLL RMP .

WORKING Of MLM RMP(Resource of Money & Power) Choose your product among 12 different products    Get the Demand Draft Choose your sponsor Get your sponsor id USER ID vij0003id TRACKING ID RMPLKJH14098 .

RMP has Binary Plan .

SALES TECHNIQUES  Look for a prospect  Attending Business Meeting/Seminar  Convince prospect for the business profits  Take the joining  Give training .

RMP BUSINESS POLICIES  Commission  Incentives  Ceiling  Car Loan .

 Educate.Intellectual Distribution Of Products Because intellectual distribution represents the best opportunity for network marketing companies and their sales forces to succeed.  Train. what it is called the METS Formula  Motivate.  Support .

Let Me Tell You About a Fantastic Opportunity."  Dubious Claims  Motivation: Powerful but Misguided  Exaggerated income claims . Slander. Defamation  Math and Common Sense  Learning the Hard Way(exploitation of personal relation)  High-pressure Selling High "Mother..What s wrong with MLM ??  MLM Sales Technique: Rumors..

public recognition and encouragement from the entire team.REWARDS Commissions based on the ongoing sales volume of your downline group. . Lots of personal recognitions.

CAREER GROWTH IN MLM  Most MLM companies provide career growth in terms of Levels and Target is ceiling. like: SILVER GOLD STAR DIAMOND PRESIDENT CLUB DOBLE CROWN CROWN .  Commission earnings are weekly  These levels are.

 Products should be of daily use or must have repurchase power.  Value for money should be there at the time of joining.  At least a Private Limited firm should be there.  Quality should be good as it is word of mouth business.  Management should not be a part of some past illegal things.  A good residual plan is must.Check points for the legal MLM  Company must have their own branded products. .

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