MLM began in the US in 1959 when two business partners started a company with a unique business model. They believed sales representatives should be compensated for ongoing business generated by those they recruit. MLM involves multiple levels of sales representatives who market products to customers and recruit and train other representatives. Representatives earn commissions from their own sales as well as sales of those in their downline. There are different types of MLM compensation plans including unilevel, matrix, binary, and stairstep plans. Health products tend to be most commonly sold through MLM.

4. 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.

5. 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.

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

7. THE TRDITIONAL 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.

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

9. 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 isn’t limited to only what they can sell - they
can also earn commissions for having trained other
sales reps.

11. MLM is Organic
Organically, the MLM industry is a fantastic model.
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.
These three steps are the organic concepts of MLM and
are absolutely brilliant.

12. 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.

13. 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

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

15. 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.

16. 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.

17. 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.

18. 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.

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

20. 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

21. RMP has Binary Plan

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

23. RMP BUSINESS POLICIES
Commission
Incentives
Ceiling
Car Loan

24. 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

25. What’s 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

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

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

28. 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.

29. For details and bookings contact:-
Parveen Kumar Chadha… THINK TANK
(Founder and C.E.O of Saxbee Consultants)
Email :-saxbeeconsultants@gmail.com
Mobile No. +91-9818308353
Address:-First Floor G-20(A), Kirti Nagar, New
Delhi India Postal Code-110015