Multi-Level Marketing - Tips to Success.


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                         Introduction


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 traditionalpproach. 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 representative.


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.

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