explain briefly, pls.
2007-07-27 01:16:24 · 5 answers · asked by Danial S 1 in Business & Finance ➔ Advertising & Marketing ➔ Other - Advertising & Marketing
Multi Level Marketing, also called Chain marketing where you buy your place in a team and get back your money and more by recruiting others who in turn get their money by recruiting some more....
If you are very ethical, keep away from it.
2007-07-27 01:25:11 · answer #1 · answered by Swamy 7 · 0⤊ 0⤋
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.
2007-07-27 01:32:29 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Multi Level Marketing. Sometimes referred to as "Pyramids" Person A recruits persons B&C to sell product which are provided to them by A. B&C recruit two persons each, D,E,F, and G to sell product that is provided by B&C, which is in turn provided to B&C by A. A realizes profit from B through G, B from D and E, C from F and G, etc. . Diagrammed, it looks like:
A
B C
DE FG
There are strict laws governing this marketing model. Many who use it refuse to call it a Pyramid Scheme, but if you can diagram the cash flow this way that is what it is.
Luck!
2007-07-27 01:28:55 · answer #3 · answered by Intruder5 4 · 0⤊ 0⤋
Multi-level-marketing. You pay money to sell someone else's products. You keep a piece of the profit. But, in the end, you don't sell the product. You try and get other people under you to sell the product. You make money when they pay their signup fee. In reality, the products are not usually better than stuff you can get at Wal-Mart. So, no one sells the products, they just make money getting people to sign up underneath them.
2007-07-27 04:04:14 · answer #4 · answered by Tyler G 1 · 0⤊ 0⤋
Multi Level Marketing
Essentially, you pay inflated prices to subsidize the people who above you in the chain.
Why would you do that? I don't know.
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2007-07-27 02:08:30 · answer #5 · answered by Anonymous · 0⤊ 0⤋