Multi level marketing system

ABSTARCT :

Multilevel Marketing is a very popular business model in the Western countries. It is a kind of hybrid of the method of distribution of goods and the method of building a sales network. It is one of the safest (Carries a very low risk) ways of conducting a business activity. The knowledge about functioning of this Business model, both among theoreticians (scanty literature on the subject) and practitioners, is still insufficient in Poland. Thus, the presented paper has been prepared as — in the Authors' opinion — it, at least infinitesimally, bridges the gap in the recognition of Multi Level Marketing issues. The aim of the study was, first of all, to describe Multi Level Marketing, to indicate practical benefits of this business model as well as to present basic systems of calculating a commission, which are used in marketing plans of companies. The discussion was based on the study of literature and the knowledge gained in the course of free-form interviews with the leaders of the sector.

EXISTING SYSTEM :

? Innovative trends and concepts occur in many fields of existence, and the marketing industry is no different. ? When the buyer has a certain amount of knowledge regarding a good does trading between the vendor and the consumer on the market exist. ? The key purpose of the research was to explore existing and potential developments in marketing. ? The research concluded that a favorable association existed between goals satisfied in MLM and work satisfaction. ? To be more precise, their targeted or current and existing customers using or will use their goods and services.

DISADVANTAGE :

? This issue remains quarrelsome in many countries and US and Europe government regulators attempt to use it as a primary evidence of a pyramid scheme. ? To an extent, the issues surrounding the practice of multilevel marketing fit within the realm of what Madichie (2009) has called “the gap between the marketing theory train and the marketing practice platform”. ? As long as a product or service (and not just the right to sell a product or service) is being sold, internal consumption should not be an issue for multilevel marketing organisations. ? However, despite the intuition that internal consumption should be a non-issue, in multilevel marketing it remains contentious.

PROPOSED SYSTEM :

• The purpose of this paper is to present an objective view of multilevel marketing as a retailing channel of distribution, and its effect on distributors who also are consumers of products produced by the company they represent. • In the remainder of this paper multilevel marketing is defined and discussed, its legality in terms of pyramid schemes is addressed, and the ethics of multilevel marketing are considered. • To date, criticisms have not presented any empirical evidence to support their claims. • The present paper is similar in that no quantitative empirical data are available. Rather, our comments are based on observation of the marketplace and as such constitute qualitative marketing research.

ADVANTAGE :

? The independent distributors’ performance should be monitored to ensure the sales; Possibly create target sales to be reached by each level of distributors. ? An ethically strong approach is also a guarantor for the overall MLM ecosystem ensuring a better efficiency in maintaining motivation and consultants’ performances. ? This will help having a structured network model with an efficient flexibility in case of a need to change or fill a nod with a new recruit. ? The distributors have to be monitored and given strong incentives and encouragement to fulfill targets efficiently and do what it takes to make profit and increase the value of the company.