ArticlesBase.com - Free Articles Directory
Free Online Articles Directory
26.07.2008 Sign In Register Hello Guest
Email:
Password:
Remember Me 
forgot your password?


What is Multi Level Marketing?

Author: Marcus Schroefel Author Ranking Blue | Posted: 11-05-2006 | Comments: 0 | Views: 136 | Rating:  (50) Article Popularity - Green (?) Got a Question? Ask.
Sign Up Now!

Multi level marketing is known as network marketing. This is a kind of business where franchising and direct selling are combined. This business makes a person associated to a company in an independent transaction approach. It is an approach where the company creates a contactor relationship to the person who wants to expand his business.

The members make their earnings based on the sales they have reached in that particular product or service. It also includes the sales of the person that they have recruited to join the business. Most of the time the individual who has recruited more members and provided a good sales output on the product compensate higher because of the effort to transact in two different fields.

There are "pyramid schemes" or Ponzi schemes, which are considered illegal. Most people associate multi level marketing to these kind of schemes because they also recognize themselves to be a legitimate networking business. Because of the bad image brought up by these schemes, many prefer to use their names for their businesses as "home based business franchising" or "affiliate marketing".

Commissions are earned in the process of selling a particular product or service in a legitimate network marketing. There can be no earnings in what they call as a "sign up fee" or for just recruiting yourself alone. This kind of marketing is always criticized because of the questionable recruitment process where they get their revenue and profit. They get their sales from members and new members, which are considered the end users of the product and as the distributors.

These criticisms led to the major changes in the multi level marketing in the early 1980s when many companies have started to allow their members to concentrate only on marketing and not on distributing or stocking the product. Most multi level marketing firms nowadays perform as fulfillment firms by taking the tasks of shipping the product, paying the commissions and taking orders from their clients.

Many people who are victims of the illegal schemes in multi level marketing are required to buy expensive products, but most of these schemes do not last long because most of the sales are not easily resold.

Rate this Article: Current: 0 / 5 stars - 0 vote(s).

Article Source: http://www.articlesbase.com/business-articles/what-is-multi-level-marketing-27494.html

Print this Article Print article   Email to a Friend Send to friend   Publish this Article on your Website Publish this Article   Send Author Feedback Author feedback  
About the Author:

Marcus Schroefel is a contributing editor for the Money Community. For more information about this topic or/and other topics, please visit http://www.MoneyCommunity.biz.

Submitting articles has become one of the most popular means of generating quality backlinks and targeted traffic to your website. Join us today - It's Free!

Article Comments

Comment on this article Comment on this article
Your Name
Your Email:
Comment Body
Enter Validation Code: Captcha


Related Articles

MLM Secret
By: Chris Kosman | 22/04/2008 | MLM
Most of the distributors when they join a Network Marketing company they start searching for the ultimate secret that will transform them into MLM superstars. They believe that there is a forbidden knowledge known to few and well guarded by them so it won't spill to the average marketer out there that struggles to build his business. But is this true?

Nutritional Products - the Ideal MLM Product Line
By: Aziz Jangbar | 26/09/2007 | MLM
Nutritional products are the ideal product line for an MLM business, because baby boomers are getting older and turning to different supplements, nutritional products are replenish able, and people want the convenience of having the nutritional products delivered to their door.

Is an MLM or Network Marketing Business the Right Choice for Me?
By: James Guffey | 28/04/2008 | MLM
Given the state of the economy and where it's on track to be headed, more people than ever are looking to home-based business to supplement or even replace their income. Given the credit crunch and already over extended position many find themselves in, what is the right next step? Have you been approached by someone in an MLM or Network Marketing company and you find yourself asking if it's the right choice?

Home Business Opportunity
By: pateluday | 11/07/2008 | Business Opportunities
An article on key concept behind home business and affiliate marketing.

Home Business and Affiliate Maketing Myths
By: pateluday | 11/07/2008 | Home Business
An article on hard facts on home business facts and affiliates

The Right MLM Opportunity - How to Choose One
By: Aziz Jangbar | 03/09/2007 | Business Opportunities
Picking the right MLM Opportunity involves understanding what MLM is and how to recognize a company that can help you achieve your long-term goals.

Two Important Steps to Network Marketing Success
By: Mal Keenan | 07/09/2006 | Home Business
Is Your Network Marketing Company a Dressed Up Pyramid Scheme? These points will help your find out.

Network Marketing Success Secrets
By: Carlo Cabrera | 29/01/2007 | Marketing
What you are about to learn is what I do to be a Successful Network Marketer. I'm not saying it's the best way, It's just the way that works best for me and I hope it helps others. In order to be successful in Network Marketing you must make a 1...

Got a Question? Ask.

Ask the community a question about this article:

Frequently Asked Questions

Plastic Covered Sun Visor No Brim
By: Karen | 21-07-2008
Help, I am looking for a ladies plastic sun visor that is covered with a knit like material, that does not have a brim,  I have several old ones, Dorfman Pacific used to make them and I have a Grand Strand Myrtle Beach, but I cannot find them anywhere.  thanks karen

I will like to know
By: cpapisgrl | 21-07-2008
where can i find a hawaiin clothing store around downtown Los Angeles?  

Any information on how to start auto recycling ...
By: bestcrown | 20-07-2008
Any information on how to start auto recycling business ?

Why japanese firms tend to be so competitive
By: merry thu | 20-07-2008
why japanese firms tend to be so competitive

Renter with no air inside temp is 90 is this illegal
By: smiley | 20-07-2008
I live in SC and am a renter I went without air for a week with the temp inside my home 90 they fixed it finally after i had to rent two 110 units to cool the home.  Now it is broke again 4 days later. what are my rights?

I am trying to find a dress shirt venti/bugelfrei ...
By: Curtis | 19-07-2008
i am trying to find a dress shirt venti/bugelfrei,the color is berry

Q&A Powered by:
Powered by Yedda 

Latest Business Articles

Water Damage & Solano County Flooding
By: Mark Decherd | 26/07/2008
If you live in Solano County, it's imperative that you are aware of the flood potential and understand the risks. The wet months run from November through April. During these months, you are more likely to experience flooding.

Is it Time to "reset" Your Business?
By: Linda Feinholz | 26/07/2008
When is 'too much to do' finally enough? I mean enough to have you reach out and slap your personal and business 'reset' button? Do you ever feel like you're buried under overwhelm? Sometimes prioritizing the to do list isn't what needs to be done.

15 Ways to Improve Your Closing Ratios and Sales Presentations
By: Katrina Sawa | 26/07/2008
It is not enough to do launching effective marketing campaigns to obtain new customers and to continually market to your existing database for more referrals and repeat business. In addition, you must be able to ask for and close the sale. Otherwise, it is a waste of time and money!

In Searching for Cost Reducitons, Look at Total Cash Flow Costs Rather Than Accounting Costs
By: Donald Mitchell | 26/07/2008
If you are a privately held company, look to reduce overall cash costs when considering alternative cost reductions, rather than the impact of reported earnings.

The More Trust, the More Time to Succeed
By: Andrew Cox | 26/07/2008
Bill Oncken, in his book Managing Management Time, says that the more trust you have with your "universe " of people, the more time you have to do the things that lead to success. Trust is hard to earn. Once lost it's hard to regain. It's the most precious asset in any relationship - at any level - at any time. Read on to see how a successful Division President builds trust.

10 Tips on the Issues With Selling Professionals
By: Drew Stevens | 26/07/2008
The world of professional selling is rich with information related to selling skills, sales training and techniques to assist professionals. However, after much rhetoric and information I am finding something completely different...a problem with selling professionals.

India - the Next Economic Powerhouse
By: Paul Hata | 25/07/2008
India is one of the fastest-growing countries in Asia. In 2006, India recorded a 1.2% of world trade share overall. The stat was picked out from WTO. The growth is mainly due to the liberalization that took place in India way back in 1991. Ever since then, there's no looking back.

Customer Service Toolkit
By: Drew Stevens | 25/07/2008
All businesses make money, yet those that are customer focused are more profitable.

More from Marcus Schroefel

What is Podcast Video?
By: Marcus Schroefel | 25/09/2006 | Online Business
A growing trend online is podcast video. While podcasting was originally only for audio files, more and more people are beginning to send video, especially with broadband connections more accessible.

The latest Internet Buzz: Keyword Sites?
By: Marcus Schroefel | 17/07/2006 | Business
Can you remember when the MillionDollarHomePage.com launched last year? Just a few days after the page got online, it received loads of traffic and soon became one of the sites on the internet!

Definition of Whole Life Insurance
By: Marcus Schroefel | 16/06/2006 | Finance
Whole life insurance, also known as "cash-value" insurance is a basic and consistent type of permanent life insurance which remains in effect your entire life at a level premium. This life insurance is a good choice got you if you do not expect your life insurance needs to diminish over time.

Small Business Grant Tips
By: Marcus Schroefel | 06/06/2006 | Business
If you are looking to open a business of your very own, you are not alone. Every year more and more people make the decision to stop working to make other people rich and to start their own businesses. For most of them, having the start-up capital that is needed is harder than one might think.

Discover How To Make Money From Home
By: Marcus Schroefel | 13/05/2006 | Home Business
In 21st century, Internet is becoming a revolutionary media and also potential candidate for earning money. It opens up many opportunities to be rich. Paid survey is one of the arenas in Internet, where you can definitely earn good amount of money.

Article Categories






Give Feedback

Sign up for our email newsletter

Receive updates, enter your email below