Mechanisms for Multi-Level Marketing
Multi-level marketing is a marketing approach that motivates its participants to promote
a certain product among their friends. The popularity of this approach increases due to the
accessibility of modern social networks, however, it existed in one form or the other long before
the Internet age began (the infamous Pyramid scheme that dates back at least a century is
in fact a special case of multi-level marketing). This paper lays foundations for the study of
reward mechanisms in multi-level marketing within social networks. We provide a set of desired
properties for such mechanisms and show that they are uniquely satis ed by geometric reward
mechanisms. The resilience of mechanisms to false-name manipulations is also considered; while
geometric reward mechanisms fail against such manipulations, we exhibit other mechanisms
which are false-name-proof.
1 Introduction
Social networks are everywhere: our e-mail and phone address books, our family relatives, and our
business connections, all de ne either explicit or implicit social networks. Social networks have
existed long before the Internet, but their recent web-based form, as exhibited by companies like
Facebook, Twitter, or LinkedIn, made them more tangible. In their new manifestation, social
networks have become an attractive playground for viral marketing: the dream of any marketer
is that her products will be promoted via \word of mouth" (which relies on social networks). In
order to make that dream a reality, various forms of marketing have been advocated. The so-called
a liate marketing, direct marketing, and multi-level marketing all refer to (overlapping) approaches
that facilitate viral marketing. In this paper, we shall adhere to the term multi-level marketing, as
it seems to be the least restrictive one.
The fundamental idea behind multi-level marketing is that Alice, who already purchased the
product, is rewarded for referrals, i.e., for purchases made by Bob as a result of Alice's promotion.
The reward mechanism associated with multi-level marketing may take various forms. In particular,
How To Find out Best Network Marketing ? how to select a fully Legal MLM Company ? What are the criterias for a Company to be a good choice for network marketing ? What is the importance of Management Team & advisory Bord ? Which is the best & Strongest income plan Today in MLM industry ? How to select a stable MLM plan ? How to select a Right MLM company at Right Time With A Leading Team? HERE IS ALL THE ANSWERS OF ABOVE QUESTIONS
www.bestmlm-india.blogspot.in
Multi-level marketing is a marketing approach that motivates its participants to promote
a certain product among their friends. The popularity of this approach increases due to the
accessibility of modern social networks, however, it existed in one form or the other long before
the Internet age began (the infamous Pyramid scheme that dates back at least a century is
in fact a special case of multi-level marketing). This paper lays foundations for the study of
reward mechanisms in multi-level marketing within social networks. We provide a set of desired
properties for such mechanisms and show that they are uniquely satis ed by geometric reward
mechanisms. The resilience of mechanisms to false-name manipulations is also considered; while
geometric reward mechanisms fail against such manipulations, we exhibit other mechanisms
which are false-name-proof.
1 Introduction
Social networks are everywhere: our e-mail and phone address books, our family relatives, and our
business connections, all de ne either explicit or implicit social networks. Social networks have
existed long before the Internet, but their recent web-based form, as exhibited by companies like
Facebook, Twitter, or LinkedIn, made them more tangible. In their new manifestation, social
networks have become an attractive playground for viral marketing: the dream of any marketer
is that her products will be promoted via \word of mouth" (which relies on social networks). In
order to make that dream a reality, various forms of marketing have been advocated. The so-called
a liate marketing, direct marketing, and multi-level marketing all refer to (overlapping) approaches
that facilitate viral marketing. In this paper, we shall adhere to the term multi-level marketing, as
it seems to be the least restrictive one.
The fundamental idea behind multi-level marketing is that Alice, who already purchased the
product, is rewarded for referrals, i.e., for purchases made by Bob as a result of Alice's promotion.
The reward mechanism associated with multi-level marketing may take various forms. In particular,
How To Find out Best Network Marketing ? how to select a fully Legal MLM Company ? What are the criterias for a Company to be a good choice for network marketing ? What is the importance of Management Team & advisory Bord ? Which is the best & Strongest income plan Today in MLM industry ? How to select a stable MLM plan ? How to select a Right MLM company at Right Time With A Leading Team? HERE IS ALL THE ANSWERS OF ABOVE QUESTIONS
www.bestmlm-india.blogspot.in
