MLM- Multi level Marketing or network marketing or direct sellling in his famous term is a kind of marketing strategy in which the sales force is compensated not only for the sales they personaly generate but also through the sales of the other that they have recruited. Creating a downline of distributors and a hierarchy of multiple levels of compensation.
Commonly the member well going to sell a product directly to the consumer by means of relation referral or word of mouth marketing. Most or some people called MLM as “Direct selling”, although MLM is only one type of a direct selling.
This kind of business started centuries ago with peddling, a term mostly used for travellers hawking some goods to country sides and villages. MLM companies has been always subject to criticism and also a target of lawsuits.Criticism is focused on their similarity to illegal pyramid schemes,price fixing of products and etc. In short when we say MLM or network marketing this two to three word business is totally been criticized due to some cases of pyramid schemes and price fixing, and that is why some called this business a fraud.
It has been accepted that in 1945, the california vitamin company (shortly became Nutrilite )first introduce multi-level marketing.Some other companies such as tupperware, Amway,natura,avon,herbalife followed. In contrast for those who critizise MLM, this companies who had the same type of selling strategy made many people become successful.
It only means that not all MLM companies are fraud, or belongs to a pyramiding scam .To know if a MLM company is a legit company, you should check first the background of the said company.Who are the owners of the company,is it registered at SEC(Security and Exchange Comission) In BIR(Bureau of Internal Revenue) Is it a member of DSA(Direct Selling Assocaition) or other legit association.
Of-course before you deside to join to an MLM company,after checking all of the above mention,
the next thing to do is to check the company profile,the marketing strategy, marketing plan the system the vission and mission of that company and the goal of that company and the most important is the product that you are going to distribute to your target consumers.Is it consumable?Is it really needed? Is it effective?is it made by the no.1 manufacturer?Is it Unique?Because with this all knowledge, you will already know if you’ll became successful in this Multi-Level Marketing Industry.
