m



HISTORY
Ú 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.

Ú They believed that they should be paid relative to the

benefit the company continued to get from their
original work.
  
Ú Multi-Level Marketing(sometimes called Network
Marketing, Referral Marketing or Direct Marketing),
multiple levels of people are marketing a product to
consumers.
Ú 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.
Ú The products and company are usually marketed directly
to consumers and potential business partners by means
of relationship referrals and word of mouth marketing.
 Yales rep gets customers and trains another sales rep to get customers.
ëRefer a friend and youǯll receive a discount on your next
purchase,dz this is multi-level marketing.
 THE TRDITIONA CO
ANY

Ú |n a non-MLM company, a sales manager and sales

reps are hired by the company.

Ú Once a sales manager is overwhelmed, the company

can hire another manager or convert a sales rep into a
manager.
praditional companies (non-MLM) use DzMulti-Widthdz Marketing.
 p



 
Ú An MLM company ëstartsdz by recruiting one person
who gets customers and recruits sales reps with the
option to become a manager.
Ú The MLM company only pays commissions, not
salaries.
Ú This is beneficial to the company because of rapid
expansion by the number of trained sales reps.
Ú This is also beneficial to the sales reps because their
income isnǯt limited to only what they can sell - they
can also earn commissions for having trained other
sales reps.
   is Organic
Organically, the MLM industry is a fantastic model. Hereǯs
why:

Ú |n its organic state one person shares a valuable product

or service with another
Ú A person shares a business idea with another
Ú phe person who shares the business with another ONLY
profits | 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.

 Criticism Of  
Ú 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.
Ú AMWAY was found guilty of price fixing and making
exaggerated income claims.
Ú MLM's are also criticized for being unable to fulfill
their promises for the majority of participants
Ú The exploitation of personal relationships for financial
gain
  Compensation
an
D Unilevel Plan

D Matrix Plan

D Stairstep Plan

D Binary Plan
¬NI EVE
an
[As the name suggests, the plan allows a
person to sponsor one line of distributors,
called a "frontline.ë

[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.
STAIRSTE

an
rSales volume is created by recruiting and
by retailing product.

rVarious discounts or rebates may be paid

to group leaders.

r Once predefined personal and/or group

volumes are achieved, a representative
moves up a commission level.

rThe original upline usually continues to

be compensated through override
commissions and other incentives.
ATRIX
an
ÎMatrix plans often have a
maximum width and depth.

ÎWhen all positions in a

representative's downline
matrix are filled a new matrix
may be started.

ÎRepresentatives in a matrix
earn unlimited commissions on
limited levels of volume with
minimal sales quotas.
ÕINARY
an
’|t allows distributors to have
only two front-line
distributors.

’This "spillover" is one of the

most attractive features.

’The primary limitation is

that distributors must
"balance" their two downline
legs to receive commissions.
   Companies in INDIA
å Attitue Trading (P) Ltd.
å Amway
å FLP
å Tupperware
å DXN
å RCM
å Modi Care
å Oriflame
å HLL
å RMP
 ^ORKING Of  

V
V 


Choose your product among 12 different products

[ Get the Demand Draft

[ Choose your sponsor
[ Get your sponsor id

¬Y
 | Ȃ vij0003id
pACK|NG | Ȃ RMPLKJH14098
V



 SA ES TECHNIQ¬ES
Ú Look for a prospect

Ú Attending Business Meeting/Seminar

Ú Convince prospect for the business profits

Ú Take the joining

Ú Give training
R
Õ¬SINESS
O ICIES
ÚCommission

Ú|ncentives

ÚCeiling

ÚCar Loan
Inteectua Distribution Of
roducts
Because intellectual distribution represents the best
opportunity for network marketing companies and
their sales forces to succeed, what it is called the METS
Formula
Ú Motivate,

Ú Educate,

Ú Train,

Ú Support
 ^ at͛s wrong wit  
Ú MLM Yales pechnique: umors, Ylander,
efamation
Ú Math and Common Yense
Ú Learning the Hard Way(exploitation of personal
relation)
Ú High-pressure Yelling
Ú "Mother, Let Me pell You About a antastic
Opportunity..."
Ú ubious Claims
Ú Motivation: Powerful but Misguided
Ú
xaggerated income claims
 RE^ARDS

Commissions based on the ongoing sales volume of your downline

group. Lots of personal recognitions, public recognition and
encouragement from the entire team.
 CAREER GRO^TH IN  
Ú Most MLM companies provide career growth in terms of
Levels and Target is ceiling.
Ú Commission earnings are weekl
Ú These levels are, like:

S|LVER GOLD STAR D|AMOND

PRES|DENT CLUB DOBLE CROWN CROWN

C eck points for t e ega  
Ú Company must have their own branded products.

Ú A good residual plan is must.

Ú Value for money should be there at the time of joining.

Ú Products should be of daily use or must have repurchase power.

Ú Quality should be good as it is word of mouth business.

Ú Management should not be a part of some past illegal things.

Ú At least a Private Limited firm should be there.