2. MLM started in the US, in 1959, by business partners
Rich DeVos and Jay VanAndel, originally with just one
single product and a new and unique business vision.
They believed that they should be paid relative to the
benefit the company continued to get from their
original work.
3. Multi-Level Marketing(sometimes called Network
Marketing, Referral Marketing or Direct Marketing),
multiple levels of people are marketing a product to
consumers.
A sales representative (also referred to as a distributor,
member, affiliate, partner or associate) gets customers
and recruits and trains another sales rep to get customers.
The products and company are usually marketed directly
to consumers and potential business partners by means
of relationship referrals and word of mouth marketing.
4. 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.
5. In a non-MLM company, a sales manager and sales
reps are hired by the company.
Once a sales manager is overwhelmed, the company
can hire another manager or convert a sales rep into a
manager.
7. An MLM company “starts” by recruiting one person
who gets customers and recruits sales reps with the
option to become a manager.
The MLM company only pays commissions, not
salaries.
This is beneficial to the company because of rapid
expansion by the number of trained sales reps.
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.
8.
9. Organically, the MLM industry is a fantastic model. Here’s
why:
In its organic state one person shares a valuable product
or service with another
A person shares a business idea with another
The person who shares the business with another ONLY
profits IF the person they shared the business with
succeeds.
These three steps are the organic concepts of MLM and are
absolutely brilliant.
10. 1- Products should have a authentic presence
other than mlm system also.
2- Price should not be over for repurchases.
3- Manufacturer of Product should have
good reputation.
4- Health Products are sold most in MLM.
11. The Federal Trade Commission(FTC) issued a
decision, in 1979 in which it indicated that multi-level
marketing was not illegal in the United States.
AMWAY was found guilty of price fixing and making
exaggerated income claims.
MLM's are also criticized for being unable to fulfill
their promises for the majority of participants
The exploitation of personal relationships for financial
gain
12. Unilevel Plan
Matrix Plan
Stairstep Plan
Binary Plan
13. As the name suggests, the plan allows a
person to sponsor one line of distributors,
called a "frontline.“
There are no width limitations, meaning
there is no limit to the amount of people
one can sponsor in the frontline.
The common goal of this plan is to
recruit a large number of frontline
distributors and then encourage them to
do the same.
Use only one commission type, the level
commission type.
14. Sales volume is created by recruiting and
by retailing product.
Various discounts or rebates may be paid
to group leaders.
Once predefined personal and/or group
volumes are achieved, a representative
moves up a commission level.
The original upline usually continues to
be compensated through override
commissions and other incentives.
15. •Matrix plans often have a
maximum width and depth.
•When all positions in a
representative's downline
matrix are filled a new matrix
may be started.
•Representatives in a matrix
earn unlimited commissions on
limited levels of volume with
minimal sales quotas.
16. oIt allows distributors to have
only two front-line
distributors.
oThis "spillover" is one of the
most attractive features.
oThe primary limitation is
that distributors must
"balance" their two downline
legs to receive commissions.
18. RMP(Resource of Money & Power)
Choose your product among 12 different products
Get the Demand Draft
Choose your sponsor
Get your sponsor id
USER ID – vij0003id
TRACKING ID – RMPLKJH14098
22. Because intellectual distribution represents the best
opportunity for network marketing companies and
their sales forces to succeed, what it is called the METS
Formula
Motivate,
Educate,
Train,
Support
23. MLM Sales Technique: Rumors, Slander,
Defamation
Math and Common Sense
Learning the Hard Way(exploitation of personal
relation)
High-pressure Selling
"Mother, Let Me Tell You About a Fantastic
Opportunity..."
Dubious Claims
Motivation: Powerful but Misguided
Exaggerated income claims
24. Commissions based on the ongoing sales volume of your downline
group. Lots of personal recognitions, public recognition and
encouragement from the entire team.
25. Most MLM companies provide career growth in terms of
Levels and Target is ceiling.
Commission earnings are weekl
These levels are, like:
SILVER GOLD STAR DIAMOND
PRESIDENT CLUB DOBLE CROWN CROWN
26. Company must have their own branded products.
A good residual plan is must.
Value for money should be there at the time of joining.
Products should be of daily use or must have repurchase power.
Quality should be good as it is word of mouth business.
Management should not be a part of some past illegal things.
At least a Private Limited firm should be there.