Multi-level marketing (MLM) involves multiple levels of salespeople who recruit others and receive commissions from their sales and the sales of those they recruit. In an MLM company, sales representatives recruit others rather than just making their own sales. This allows for rapid expansion as more sales representatives are trained. It also allows sales representatives to earn commissions not just from their own sales but from the sales of those they recruit. While MLM can provide benefits like continuous expansion and low overhead costs, it also faces criticisms like inability to fulfill promises to most participants and potential exploitation of personal relationships.

1. UNIT – IIEntrepreneurial OpportunitiesIn ContemporaryBusiness Environment

2. MULTI LEVEL MARKETING

3. MLMMLM / Network Marketing / Referral Marketing / Direct Marketing - Multiple levels of people are marketing a product to consumers

4. A Distributor, member, affiliate, partner or associate - gets customers and recruits and trains another sales rep to get customers.

5. 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 you’ll receive a discount on your next purchase,” this is multi-level marketing.

6. The Traditional CompanyIn a non-MLM company, a sales manager and sales reps are hired by the company.

7. 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.

8. The Multi Level CompanyAn MLM company “starts” by recruiting one person who gets customers and recruits sales reps with the option to become a manager.

9. The MLM company only pays commissions, not salaries.

10. This is beneficial to the company because of rapid expansion by the number of trained sales reps.

11. 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.

12. MLM is OrganicOrganically, the MLM industry is a fantastic model. Here’s why:In its organic state one person shares a valuable product or service with another

13. A person shares a business idea with another