Multilevel Marketing MLM, A new form of Marketing or Network marketing
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Transcript of Multilevel Marketing MLM, A new form of Marketing or Network marketing
Multilevel Marketing Multilevel Marketing(MLM) or sometimes
called as network marketing is a retail distribution channel form including a manufacturer and a set of registered independent distributors who together distribute the manufacturers products directly to the market.
Features Network Low investment A different compensation system No special skills required to become a
distributor Flexible timings Convenience for both parties
Disadvantages High attrition rate with network
marketers
Reputation for being a scam
Takes time to grow
As an IBO (Independent Business Owner) you get up to 35% discount on Amway products.
When you get customers to buy your products you can charge them full price which puts that 30% into your pocket.
The full price is market-competitive and charging your customers full price is your choice.
Many IBO’s choose to give 10% discount to please the customer
Each product has a value called business value (BV) and a point value (PV).
The Amway exclusive products such as the Artistry, Nutrilite, Legacy of Clean, XS energy and eSpring have higher PV and BV than products from partner stores.
The amount of BV is accumulated within a month determines how much money an IBO makes.
The PV determines what percentage of the BV your bonus will make up
Step One involves producing enough sales monthly to access least 100 PV which is equivalent to about 300 BV to obtain the minimum bonus of three percent.
By telling others of the financial opportunities the Amway compensation plan offers, you sign-up a minimum of 6 new IBOs to your team.
Your team goes through the first step and your team of 7 individuals produces 100 PV each which adds up to 700 PV which qualifies you for that 9% Bonus.
The six IBOs inside your team decide to expand plus they each register a minimum of 4 new IBOs to their team.
The new IBOs in all of their teams undergo step one and which means you will have 31 IBOs inside your team all getting 100 PV every month adding up to 3100 PV which places you in the 18% bonus level.
Established and Emerging Markets
The world’s top 10 countries for network marketing (accounting for 80% of global sales) are the U.S., China, Korea, Germany, Japan, Brazil, Mexico, France, Malaysia, and U. K. Six of these are “Advanced economies” and four are “Developing economies” according to the International Monetary Fund. Network marketing is thriving in both advanced and developing economies.
Reasons for growth Social Selling and Online Team Building
Technology and E-Commerce
Community and Branding
References Scott G. Dacko- The Advanced Dictionary
Of Marketing P. Kotler, K.L. Kelly, A. Koshy, M. Jha-
Marketing Management B. Dutta- Marketing Management
References
http://www.mlmwatch.org/01General/mlmstart.html http://www.reitenbachstaekwondo.com/the-amway-compen
sation-plan/
http://carlosalverto.empowernetwork.com/blog/network-marketing-advantages-and-disadvantages
http://www.successwithsuzie.com/multi-level-marketing-advantages-disadvantages/
https://www.thebalance.com/problems-with-network-marketing-1200532
https://networkingtimes.com/blog/2016/07/12/10-reasons-network-marketing-is-growing-in-the-global-economy/