I want to make an assignment on network marketing-direct selling,what should be the data for that?

Answer 1

Not too sure. There's probably quite a bit of anecdotal evidence.

Anyway I have a suggestion. Why not ask your students work in small groups and to come up with a product that can be sold by the network marketing method and to devise their own compensation plan.

Then, each group will present their plan and product to the rest of the class, who will then adjudge it according to its practicality and usefulness, whether it is legal, or they have come up with a pyramid or Ponzi scheme.

The general gist of these schemes is to have a highly reputable company selling a unique product at a premium price, which is an essential component in paying for the compensation plan.

Although sales are made directly to the public by distributors there is little cost saving passed on by doing so, as the traditional middle man has been replaced by an army of distributors and the supporting administration.

When these schemes were first set out there was no Internet. The Internet has introduced a whole new ball game, particularly in the sale of non tangible products like 'information' or dubious 'positions' within an 'organisation', as well as promoting the traditional type of product.

Certainly your students would be advised to research the history of the industry, examine its major players, emulate the good points and avoid the bad. They ought to consider carefully their marketing strategy, and their promotional methods. By appraising each others efforts you will probably get as close to a real life situation scenario as you are likely to get in the classroom.