MULTI LEVEL MARKETING

Prepared 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.

MLM
Multi-Level Marketing(sometimes called Network Marketing,

Referral Marketing or Direct Marketing), multiple levels of people are marketing a product to consumers.
A sales representative (also referred to as a distributor,

member, affiliate, partner or associate) gets customers and recruits and trains another sales rep to get customers.
The products and company are usually marketed directly to

consumers and potential business partners by means of relationship referrals and word of mouth marketing.

Sales rep gets customers and trains another sales rep to get customers.

Refer a friend and youll receive a discount on your next purchase, this is multi-level marketing.

THE TRADITIONAL COMPANY

In a non-MLM company, a sales manager and sales reps

are hired by the company.

Once a sales manager is overwhelmed, the company can

hire another manager or convert a sales rep into a manager.

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

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.
The MLM company only pays commissions, not salaries. This is beneficial to the company because of rapid

expansion by the number of trained sales reps.

This is also beneficial to the sales reps because their

income isnt limited to only what they can sell - they can also earn commissions for having trained other sales reps.

MLM
Organically, the MLM industry is a fantastic model. Heres 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.

These three steps are the organic concepts of MLM and are absolutely brilliant.

What kind of products are sold most in MLM?

1- Products should have a authentic presence other than mlm system also.

2- Price should not be over for repurchases.

3- Manufacturer of Product should have good reputation. 4- Health Products are sold most in MLM.

Criticism Of MLM
The Federal Trade Commission(FTC) issued a decision, in

1979 in which it indicated that multi-level marketing was not illegal in the United States.
AMWAY was found guilty of price fixing and making

exaggerated income claims.

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

MLM Compensation Plan

Unilevel Plan Matrix Plan Stairstep Plan Binary Plan

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

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, a representative moves up a commission level. 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.
When all positions in a representative's downline matrix are filled a new matrix may be started. Representatives in a matrix earn unlimited commissions on limited levels of volume with minimal sales quotas.

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

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

Intellectual Distribution Of Products

Because intellectual distribution represents the best opportunity for network marketing companies and their sales forces to succeed, what it is called the METS Formula
Motivate,

Educate,

Train,

Support

Whats wrong with MLM??

MLM Sales Technique: Rumors, Slander, Defamation

Math and Common Sense

Learning the Hard Way(exploitation of personal

relation)

High-pressure Selling "Mother, Let Me Tell You About a Fantastic

Opportunity..."

Dubious Claims Motivation: Powerful but Misguided Exaggerated income claims

REWARDS

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

CAREER GROWTH IN MLM

Most MLM companies provide career growth in terms of Levels and

Target is ceiling.

Commission earnings are weekly

These levels are, like:

SILVER

GOLD

STAR

DIAMOND

PRESIDENT CLUB

DOBLE CROWN

CROWN

Check points for the legal MLM

Company must have their own branded products.

A good residual plan is must.

Value for money should be there at the time of joining.

Products should be of daily use or must have repurchase power.

Quality should be good as it is word of mouth business.

Management should not be a part of some past illegal things.

At least a Private Limited firm should be there.