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naveed t | What is the meaning of the term MLM in marketing...? |
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I agree with the 2 answers I've seen and would like to add, that it all depends on the area you're in, the number of the population, is there a need for the products to be sold and how good you are as a sales person to push the merchandise.
Many have gotten incredibly rich with this, but even more lost everything. I'd be very careful getting into something like this. |
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Pamela G
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From Wiki:
Multi-level marketing (MLM) is a business model that combines direct marketing with franchising.
Multi-level marketing businesses function by recruiting salespeople (also called Distributors, Independent Business Owners, IBOs, Franchise Owners, Sales Consultants, Beauty Consultants, Consultants, etc.) to sell a product and offer additional sales commissions based on the sales of people recruited into their downline, an organization of people that includes direct recruits, recruits' recruits, etc. This arrangement is similar to franchise arrangements where royalties are paid from the sales of individual franchise operations to the franchisor as well as to an area or region manager, but in some MLM programs, there can be seven or more levels of people receiving royalties from one person's sales.
The Federal Trade Commission advises that multi-level marketing organizations with greater incentives for recruitment than product sales are to be viewed skeptically. In April 2006, it proposed a Business Opportunity Rule intended to require all sellers of business opportunities—including MLMs—to provide enough information to enable prospective buyers to make an informed decision about their probability of earning money. FTC trade regulation rules usually take 1-1/2 to 3 years before a final rule is established.
Criticisms have been raised against MLM programs for being cult-like in nature. Many MLM programs feature intense motivational programs, which can be hard to distinguish from cult propaganda. Criticism of Amway as a cult have been regarded as largely baseless, though some of the "Independent Business Organizations" within Amway have been accused of operating as cults |
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Tony T
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Multi-Level Marketing.
This has sometimes been referred to as 'pyramid' marketing. |
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Beach bum
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Multi Level Marketing or pyramid marketing.
MLM is actually more of a recruiting job instead of selling products. The more members you hire, the more income you'll get.
To be part of MLM, it is best to right at the top of the hierarchy and you also must be good at recruiting.
But be aware, MLM has been banned in many countries due to scams. They'll recruit you by making you pay membership fee and buying their products. The next thing you know, that company no longer exists. |
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JCBahr
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Multi- Level Marketing is a term used for pay, comission or chain of command scales to identify certain tears or levels when people reach new benifits, income or authority. The marketing part of it is a trickle down kinda. Where information is deseminated from the upper ownership levels through the least comon denomonator. This can insure the same information is used in the same manner across the company. So when someone finds something that really works they can tell everyone and the whole company wins.
Some people confuse this with a term pyramid. Now a pyramid is an illegal form of MLM. In a pyramid all levels of the company are incentified just to get people to join, start or sign up in their "business". The federal trade comission has very specific defintion of these two things and their criteria. |
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energyblast
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I definitely agree with Pamela, MLM or multi-level marketing is a form of marketing actually taught in business school. If you really want to understand the principle CORRECTLY go to the library and look out the book I'm not sure of the title in english but it should read like "the school of business" it is written by Robert T. Kiyosaki a multi-billion dollar business owner whom at first did not believe nor understood the principle associated with it but did extensive research and wrote a very comprehesive book on the subject. I would say that this kind of marketing is great I have personnally grown both personnally and financially from this business but I would also say that there is only 2 major problems with it. First the fact that the franchise is so low that mostly anyone can start a business, resulting in many people absolutely not prepare for a business life, been very disappointed not because the system does not work but because they only wanted to make money without actually learning the how to be a succesful person (that starts in your how you think and not the other way around) when you hear of people failing in these business they pester and complaint that it doesn't work ask them if they did ANYYTHING else prior... and 9 time out of 10 you will be surprise of their answer!!! The second is related to the first: In MLM leadership is VERY important. Before you join ANY companie that it is MLM or traditionnal you MUST look at the leaders. If what they say and do don't correspond DO NOT join the business. Hope that will answer your question.
Take care. Oh and by the way you should know one thing about me: My first language is french so excuse any spelling or grammar mistake!!! |
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