Multilevel Marketing

VIGNAN JYOTHI INSTITUTE OF MANAGEMENT

TERM PAPER ON

MUTI-LEVEL MARKETING

Submitted by

K.P. ASHITHA – 10319

K. SREEBHUSHAN – 10320

SRINIVAS – 10321

K. PRAGNYA – 10323

MAHESH GOYAL – 10324

Table of contents

Contents

Table of contents 2

Objective 3

Executive Summary 3

Introduction 4

Multi-Width Marketing 6

The MLM (Multi Level Marketing) Company 7

MLM is Organic 9

MLM Vs Pyramid selling 10

MLM compensation plan 12

Sunflower Model Vs Binary Model of MLM 14

Internet Multi level marketing 16

Success behind Amway 17

Failure of multi-level marketing 18

The three strategies of selecting number of intermediaries 19

Designing the sales force 19

Conclusion 21

References 22

Objective

The main objective is to study about the multi level marketing, its advantages, and what makes it different from pyramid scheme, various compensation plans, and failure of MLM and how to select the number of intermediaries.

Executive Summary

Multi-level marketing (MLM), (also called network marketing, direct selling, and referral marketing) is a term that describes a marketing structure used by some companies as part of their overall marketing strategy. The structure is designed to create a marketing and sales force by compensating promoters of company products not only for sales they personally generate, but also for the sales of other promoters they introduce to the company, creating a downline of distributors and a hierarchy of multiple levels of compensation. The products and company are usually marketed directly to consumers and potential business partners by means of relationship referrals and word of mouth marketing. Multi level marketing is that it is a method of marketing that utilizes independent representatives to reach potential customers that a company otherwise would not reach with traditional online or offline marketing methods. In order to accomplish this, multi level marketing companies and their associates recruit...