1. Prepared By:- ABHISHEK KUMAR LBSIM PGDM(EVE.)
MULTI LEVEL MARKETING
Prepared By:-
ABHISHEK KUMAR
LBSIM
PGDM(EVE.)

2. HISTORY
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. MLM
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. THE TRDITIONAL COMPANY
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. The Multi Level Company
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.

9. MLM is Organic
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. What kind of products are sold most in MLM?
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. Criticism Of 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

12. MLM Compensation Plan Unilevel Plan Matrix Plan Stairstep Plan
Binary Plan

13. UNILEVEL 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.

14. STAIRSTEP Plan
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 Plan 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. BINARY Plan
It 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.

17. MLM Companies in INDIA Attitue Trading (P) Ltd. Amway FLP Tupperware
DXN
RCM
Modi Care
Oriflame
HLL
RMP

18. WORKING Of MLM 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

19. RMP has Binary Plan

20. SALES TECHNIQUES Look for a prospect
Attending Business Meeting/Seminar
Convince prospect for the business profits
Take the joining
Give training

21. RMP BUSINESS POLICIES
Commission
Incentives
Ceiling
Car Loan

22. Intellectual Distribution Of Products
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. What’s wrong with MLM…??
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. REWARDS
Commissions based on the ongoing sales volume of your downline group. Lots of personal recognitions, public recognition and encouragement from the entire team.

25. CAREER GROWTH IN MLM
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. Check points for the legal MLM
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.

27. THANK YOU