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 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.
 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.
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.
 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.
Traditional companies (non-MLM) use “Multi-Width” Marketing.
 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.
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.
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.
 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
 Unilevel Plan


  Matrix Plan


 Stairstep Plan


  Binary Plan
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.
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.
•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.
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.
 Attitue Trading (P) Ltd.
 Amway
 FLP
 Tupperware
 DXN
 RCM
 Modi Care
 Oriflame
 HLL
 RMP
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
RMP has Binary Plan
 Look for a prospect

 Attending Business Meeting/Seminar

 Convince prospect for the business profits

 Take the joining

 Give training
 Commission


  Incentives


   Ceiling


  Car Loan
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
 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
Commissions based on the ongoing sales volume of your downline
   group. Lots of personal recognitions, public recognition and
              encouragement from the entire team.
 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
 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.
MLMforINDIA.blogspot.com

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Value Proposition canvas- Customer needs and pains
 

Network Marketing - Basic

  • 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.
  • 6. Traditional companies (non-MLM) use “Multi-Width” Marketing.
  • 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.
  • 17.  Attitue Trading (P) Ltd.  Amway  FLP  Tupperware  DXN  RCM  Modi Care  Oriflame  HLL  RMP
  • 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
  • 20.  Look for a prospect  Attending Business Meeting/Seminar  Convince prospect for the business profits  Take the joining  Give training
  • 21.  Commission  Incentives  Ceiling  Car Loan
  • 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.