Mechanisms for Multi-Level Marketing

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,



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MLM Leader’s Database Packages

MLM Leader’s Database Packages
Objective of the Proposed Service:
· Any MLM Company can Promote its Products and business Plan though this Database
· To provide him the facility to get the enhancement of the Business Sales
· To provide better way to create brand name in the market
· To keep track of the users
How to use:
·
Top MLM Leaders Mobile No. All India Qty: 10,00 (Name, Mobile, Location)


Discounted Package Cost: Rs. 1500

Phone: +91-9809722999|

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MLM‟s powerful appeal

People join an MLM for a variety of reasons. Most are recruited by a family member or friend – or from contacts as work.. Some learn about a program over the Internet.
The products may seem to answer some unmet need, such as protection from illness or aging. They may be very unique and offer benefits that promoters claim are not available elsewhere.
The opportunity to be self-employed from home appeals to many who are tired of depending on fickle employers who can lay them off at any time. They see their work as dead-end jobs with no real long term potential. Others are unemployed and find in MLM the chance for at least some income. Even some professionals tire of trading time for money and like the option of owning a business that promises passive income.
MLM offers an inexpensive alternative to more expensive options for owning a business. It can cost a small fortune to buy a franchise or an established business from someone else, and starting a business from scratch may take months to get off the ground. MLM is easy to get into and appears to be a good way to be your own boss.



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Best MLM

defining MLM
I conclude with what I believe is the only accurate, research-based, and consumer-friendly definition of the business model labeled ―multi-level marketing‖: It applies to approximately 500 MLMs I have analyzed:
Multi-level marketing (MLM) is a purported income opportunity, in which products are sold by recruitment of persons who are incentivized to buy products and to recruit others in endless chains of participants, who must buy products to qualify for commissions and to advance upward through multiple levels in company-sponsored pyramids of participants.
Further – With unlimited recruitment, MLM assumes an infinite market, which does not exist in the real world. It also assumes a virgin market, which cannot exist for long. MLM is therefore inherently flawed, unfair and deceptive. It can also be extremely viral and predatory.






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Are MLMs legal? If not, what explains the inaction by law enforcement

Are MLMs legal? If not, what explains the inaction by law enforcement
1. The case can easily be made that virtually all MLMs are violating some federal and state laws, although law enforcement seldom acts against them – partly because victims of endless chains rarely file complaints. For the same reason (as well as financial support from MLMs and the DSA – see #3 below), the Better Business Bureau seldom issues a negative report on major MLMs. The media are also largely silent.
2. The DSA (Direct Selling Association, the major MLM lobbying group), together with major MLMs, work together as a cartel to weaken laws and regulatory efforts against product-based pyramid schemes. Through promised votes and carefully placed political contributions to Attorneys General and other key politicians, they have been successful in getting laws passed in Utah and other states that exempt MLMs from prosecution as pyramid schemes. They have donated to the political campaigns of presidential candidates and to those with oversight responsibility for the Federal Trade Commission to assure that no action is taken on the federal level by the FTC or any other agency.
3. Even the Better Business Bureau is corrupted by support from the DSA/MLM cartel, members of which are ―corporate sponsors‖ of the BBB. Amway, for example, gets an A+ rating from the BBB – which says more about the BBB than it says about Amway.
4. Law enforcement officials, the media, and MLM victims, have become conditioned to focus on the question of whether or not an MLM is a pyramid scheme. Since the DSA/MLM lobby has successfully obfuscated this issue with the indeterminate question of what percentage ot products are consumed,, nothing gets done. The issue of whether or not an MLM is an unfair and
Intro-4
deceptive practice is more easily determined, as this report proves.
5. Most MLM participants spend no more than a few hundred dollars in products and services and then drop out. They are the lucky ones. Despite having spent more than they received, few blame the company for their losses – even large losses. They have been taught that they (not the company) are responsible for any failures. Except for the first ones to join an MLM, generally those who invest the most, lose the most. New recruits are being sold a ticket on a flight that has already left the ground.
6. The silence of victims of MLMs is also explained by the fact that in every endless chain, major victims are also perpetrators, having recruited as many people as possible to at least recover costs of participation. So they fear self-incrimination if they file a formal complaint, and they fear consequences from or to those they recruited – which often include close friends or family






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As a business model, is MLM legal and ethical

As a business model, is MLM legal and ethical?1
1. MLMs depend on unlimited recruitment of a network of endless chains of participants.
2. Participants secure and advance to ranks or positions in a pyramid (―downline‖) of participants based on timing and recruitment, rather than on merit or appointment.
3. As endless entrepreneurial chains, or ―opportunity‖ recruitment schemes, MLMs assume an infinite market, which does not exist in the real world. They also assume virgin markets, which don‘t exist for long. They would be doomed to eventual market saturation and collapse, except that some avoid this by expanding – or ―re-pyramiding‖ – to other countries and/or through the same markets with new product offerings and divisions.
4. Therefore, as endless chains, MLMs are ihherently flawed, unfair, and deceptive – profitable primarily for those at or near the top, or TOPPs (top-of-the-pyramid promoters) – who are often the first ones to join.
5. Worldwide feedback suggests that MLMs can be extremely viral and predatory. As endless chains, MLMs quickly spread from state to state and often to vulnerable foreign markets.
6. I have challenged any one to identify any ―business opportunity‖ that is systemically more unfair and deceptive, and more viral and predatory than MLM. No one has met the challenge





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Support systems
One of the reasons franchising has become so popular today is
that people buying into a franchise do so with a sense of confidence
from knowing there is a system in place and that they
are not on their own. Network marketing also provides this
sense of confidence—although you are in business for yourself,
you’re not in business by yourself.
Many network marketing companies, particularly the larger
ones, have a substantial support system in place to assist the
business owners. In some cases these support systems are run
by some of the more successful business owners and leaders
from within the network, people who understand the value of
sharing their experience and knowledge in order to assist their
own organisation grow quicker.

Another major benefit of having a support system in place
is the opportunity it gives you to again further leverage your
time—by directing people within your organisation to the
support system and letting it do most of the work for you,
rather than you being solely responsible for the training and
support of those in your team.

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mlm is partime business

Part-time commitment still works
One of the major advantages of being involved in network
marketing is the opportunity to establish it part-time alongside
your current occupation or business. For those whose dream
has been to own a business but who have feared taking the
plunge due to the risk involved in giving up a secure job and
income to delve into the unknown, this part-time aspect
reduces that risk.
For those already running a traditional business who feel
trapped and can’t risk simply walking away from it, the opportunity
to develop something on the side with a view that some
day it will replace their current income stream is also very
attractive.
After building the network marketing business part-time
to a point that the income derived from it can safely replace
that from the job or traditional business, one can then
comfortably move into working the network marketing
business full-time.







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MLM is Low capital investment

For many of those who dream of owning their own business, a
major hurdle to be overcome is the costs and risks associated
with buying an existing business or setting one up in the first
place, often representing hundreds of thousands of dollars and
a lot of risk. One of the attractive features of building a network
marketing business is the low capital, or low entry cost, required
to get started. The majority of network marketing companies
require very little upfront money to join; what moneys are
required cover start-up costs and some initial product purchase.
If a person goes on to successfully develop their network
marketing business, the return on such a low initial capital
investment can be significant.








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MLM Passive income versus active income

Passive income versus active income
Active income is best described as having to continually work,
trading hours for dollars, in order to maintain that income.
Passive income means that, in time, you don’t have to physically
do the work but you can still maintain the income.
Given the choice, most people would prefer passive income
over active income. The majority of people think of passive
income in terms of the royalties paid to recording artists and
authors, or the returns on investment of property owners
and shareholders. Further to these are the entrepreneurial
business owners who derive large passive incomes from their
businesses. In some cases passive income can be established
without much effort; in other cases a certain amount of work
may be required to maintain the flow of passive income. There
are different models, but the concept is the same—do the work
now to build a long-term income stream.
Passive income gives the recipients choice; they are not tied
down to working hours for dollars but are in the unique
position of having control over what it is they want to do with
their time. Passive income provides the opportunity to have
greater control of what you want to do in your day—if you
want to play golf, you can play golf; if you want to do some
work, do some work; if you want to go off on a holiday on a
whim, then go. Passive income represents control, freedom and
lifestyle.
Network marketing is a great opportunity to establish
passive income. Many people who built successful network
marketing businesses now enjoy the passive income they bring.
To get to that point required effort and commitment, but the
end result is worth it.







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MLM Leverage and duplication

Leverage and duplication

Leverage and duplication are simply the ability to leverage

your time and to duplicate your efforts. If you are working

in a traditional business, your income is largely governed by

the number of hours you can physically work in a week.

In network marketing, as your network grows, the time

collectively invested within the network is dramatically

increased, and your efforts are greatly duplicated and multiplied.

Simply put, you yourself, one person, can continue to work

40 or 60 hours per week, or you can build a network where

collectively, for example, 1000 people are working only 10 hours

each per week, meaning your earning hours now total 10 000.

You need to understand that this concept is not unique to

network marketing, but is a key ingredient in most successful

entrepreneurial enterprises. Most successful entrepreneurs

use it to build their wealth. For example, those who have

established large franchising businesses base their success on

duplication and leverage of one successful store, repeating it

nationally and, ideally, globally.

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MLM- Working smarter, not harder

Working smarter, not harder
There was a time when simply working hard meant that you
had the opportunity to get ahead of the average person who
perhaps had a more relaxed approach to work. Today that is
simply not the case. Although a strong work ethic will always
be important, it is no longer the only ingredient.
Success is about being smarter and often doing things
differently to the way we would have done them in the past.
Network marketing allows you to do just that, while at the
same time giving you the opportunity to associate with very
successful people who understand this principle and who have
made it work for them.














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

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Why network marketing?

Why network marketing?

It is important to remember that you are going into business first

and foremost; in this instance, the type of business you are

Considering is a network marketing business.

Network marketing businesses each have their own idiosyncrasies

and opportunities. They can be incredibly rewarding

on many levels and as challenging as any mainstream business.

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what is Network Marketing / MLM

In simple terms, network marketing is a network of people

who have access to a range of products and services that are

distributed through that network.

Rather than operating via a shop front, people can buy these

products and services for personal use or to sell to others.

Further to this, people can assist in expanding the network

by inviting others to join the network, thus extending the

concept to their sphere. Over time, and with more people

Introduced, the volume of products and services being distributed

Increases. Along the way, a portion of the profits on

those products and services are paid to you and people in your

‘Down-line’ (we’ll explain some of this terminology later). In

time, the opportunity to create a regular income from a team

of people using and selling products becomes a reality.

Over the years, network marketing has attracted some

less than favorable perceptions. The industry’s image was

tarnished in its early days of development, when there

were no systems in place to educate those involved to go

about their business in an ethical and professional manner.

Additionally, there were many disreputable companies around

who took the attitude of selling products at any cost, to

anyone, with no long-term strategy; there were also some

illegal pyramid schemes that entered the market disguised as

network marketing companies.

Today there are well over 20 million people around the

globe involved in network marketing, also known as multi-level

marketing (MLM) or direct selling, and this figure is growing.

Manufacturers, many of them Fortune 500 companies, now

see it as a viable and credible alternative for distributing their

products and services. Reaching consumers directly through

traditional retailing methods and/or outlets is not only difficult,

it is extremely costly. Today, almost everything—

including health supplements, cosmetics, cleaning products,

training materials, clothes, cars and travel—can be and is being

sold through network marketing. Some of the most famous

names in the network marketing industry include Avon,

Usana, Melaleuca, Mary Kay, Quixtar, Herbalife, Amway,

Tupperware, Juice Plus, Nu Skin and AIM.

Technology, especially the Internet, has had a dramatic

impact on the industry, and more and more it is seen to be

moving into the marketing mainstream. The industry is

rapidly maturing and those becoming involved in network

marketing are now more often than not coming from professional

backgrounds.

Network marketing has certainly come of age. It is an

excellent way to get into business, it has a lot of appealing

aspects that cannot be found in mainstream businesses (we

discuss this throughout the book), and many of the 20 million

people involved are making a lot of money, for not a lot of

work. They did the hard yards when they started but now they

enjoy the fruits of their labour with a solid passive income

stream and residual income.

Previously, many people saw network marketing as something

you did on the side to make a little extra cash. This option

is still available today, but for most people now involved in it,

network marketing is an opportunity to establish a business that

is, and will continue to be, their main source of income.

One of the biggest mistakes made by people becoming

involved with network marketing is failing to treat it as a real

business right from the start. Because there is normally a

relatively low start-up cost, and a high degree of flexibility,

some people treat it more as a hobby. That said, this concept

does work for some people. They manage to set up a great little

business which supplements their income and helps them to

acquire the things they want out of life. But for many others,

their lack of conviction ultimately results in the business slowly

fading into the background—materials, books and products are

left to gather dust on a shelf and the words ‘network marketing

simply isn’t for me’ are uttered whenever the concept is raised.

The main purpose of this book is to make you, the reader,

aware of the similarities between building a network marketing

business and building a traditional business. Even though the

way each one works, and the end results, are different, many of

the principles, fundamentals and attitudes behind making each

business a success remain the same. If you can see your network

marketing business as just that, a business, right from the start

and give it the respect and focus required, and at the same time

recognise that many of the principles and challenges are no

different to starting up a pet shop, for example, then you are a

long way towards achieving success.

Numerous network marketing companies are now established

around the world. The way they do business, their

structure and the terminology used varies from company to

company. While our discussion has been kept as generic as

possible, to encompass the industry overall, most observations

are based on experiences with a particular network marketing

company. If the references and examples we use don’t always

seem relevant to the particular network marketing company

you are involved in, you can bet that the principle of treating

it like a real business still applies.

MLM Business is doing People Helping People

In the competitive workplace, when you work for someone else, and you do a great job, you can become a threat to others around you. Or if you gain knowledge about that specific business and teach that to someone else (duplicate yourself), many times that person may “take your job” or leave your company and start one of their own— in either case, what you have essentially done is “trained your competition”. In network marketing, when you duplicate yourself, and those who are working with you make money… you make money. When they win…you win. Zig Ziglar says, “I believe that you can get anything in life you want, if you will just help enough other people get what they want”. Network Marketing is a fun business. It’s the only business in the world where by going out and helping others get what they want, and changing the lives of others for the better, you can get what you want in the process. The saying goes it’s lonely at top, but that’s only true when you have to step on other people to get there. Yet that just isn’t the way to do it—the best way to succeed comes from helping others, and network marketing allows you do just that.

MLM is not an Employee/Employer Relationship

As a network marketer, you do not work for the company; you work with the company. The business relationship is a tangible and dynamic partnership where the company provides: the products and packaging, research and development, capitalization, financial management, legal and regulatory compliance, data processing, administration, order taking, purchasing and production, quality control, product satisfaction guarantees, warehousing, shipping, creation and production of marketing materials, and so on. So even though you are in business for yourself—you are not in business by yourself.

i am a Networker But I’m Not a Salesperson

If you can push ‘play” on a tape/CD recorder, refer others to a website or 1-800#, you can succeed in this business. Previously, network marketing tended to work best for aggressive, sales oriented entrepreneurs. Today new technology offers the every day non-sales type person a realistic promise of financial freedom. Through new systems and technology, the average man or woman—not just the super salespeople—can enjoy the fruits of entrepreneurship while avoiding many of its hardships.

Network Marketing the System Do the Work

Advancements in technology have streamlined the way network marketers do business. This new technology takes away the need for extraordinary sales people, which in turn levels the playing field for ordinary people looking for an above average opportunity. The system simplifies, standardizes, and automates the most difficult aspects of the business. No longer do distributors need to stockpile inventory and keep track of all the paperwork. Most companies have you simply direct customers to a toll-free 800 number or company website. The company fulfills the order, credits the distributor for the sale, and generates a computerized commission check and detailed report at the end of the month. What makes network-marketing work is the division of labor between distributor and parent company. A good company takes care of everything except sponsoring. Network Marketing has evolved so that the distributor functions mainly as a human contact through which the company’s communications or information stream is channeled. Someone who doesn’t have strong communication skills, strong selling skills, or strong management skills can still prosper. The idea is “you do what you do best, and the company will do the 4rest”. Voice mail, fax machines, electronic mail, Internet, videotapes, satellite links, and conference calls have made communication rather simple and effective, which allows each distributor to focus on learning and growing the business. Ironically, some of the same technologies that have allowed traditional business to cut millions of jobs are also allowing an innovative marketing method to offer hope and opportunity to people from all walks of life. Network Marketing uses this technology to support people, rather than replace them. As computers take over more and more of the work that people used to do, they free us up to focus on those things that people do best—to dream, plan, strategize, solve problems and interact with other people.

next in Multi-level Marketing

In line with global economic trends, Multi-level Marketing (MLM) companies have shifted their focus from the West towards Asia and Emerging Markets. Asia’s MLM market is estimated to be the world’s largest. With Green and “healthy-lifestyle” products poised to become the next big thing in MLM, do the best days of Asian MLM lie ahead?

Multi-level marketing (MLM), otherwise known as network marketing, evolved to reach out to customers who were either beyond the reach of conventional bricks and mortar retailers or who needed to be convinced face-to-face by someone they trusted to buy pricey, high involvement products. The world’s most successful MLM firms have been equally successful at two things. The first is creating products that people want to buy through network sales rather than other channels. The second is perfecting a process for recruiting, training and motivating sales representatives. From Avon to Tupperware, and Tahitian Noni Juice to Diamond Filtration, the reach of multi-level marketing has been astounding.  A well-established industry in OECD countries like the United States, United Kingdom and Australia, the industry has evolved and is becoming increasingly hard to ignore. In 2010, sales figures

Multi-Level Marketing in Asia and Emerging Markets  Encouraged by the success of multi-level marketing in OECD countries, MLM firms have shifted their focus to Asia in recent years. Their efforts have paid off. Asia registered USD 37 billion in MLM product sales in 2007, and is now the world’s biggest region for multi-level marketing3. Trailing behind are North America (USD 32 billion including Canada), Europe, Africa and the Middle East (USD 27 billion), Central America, Southern America and the Caribbean (USD 17 billion), and Australia and the Pacific (USD1.4 billion).

NETWORK MARKETING A SMART CHOICE FOR TODAY’S ENTREPRENUER

What Exactly is Network Marketing?

Network Marketing (also known as multi-level marketing-MLM) is an efficient method of distributing aproduct or service to the end consumer, through word of mouth, or friend -to-friend referrals. Network Marketing is a marketing method where each person is an independent distributor with his or her own business, not a company employee. It is an effective and powerful marketing system, and a perfect vehicle for home based business and the decentralization of business, which is rapidly approaching. There are approximately 10 million distributors currently in the United States, who sell between $15 to $20 billion dollars in products and services annually. Yet, while more and more people are enjoying its benefits, most are still very unfamiliar with it.

A Brief History of Network Marketing

Who actually pioneered this business? When did network marketing actually start? In 1945, Carl Rehnborg was known to be the first person to introduce a compensation plan to market his nutritional products. His company was originally called the California Vitamin Company, but later renamed as Nutrilite Products Inc. Using a multi-tired plan, it allowed any Nutrilite distributor to get a 3 percent commission from a downline on top of the regular commissions from his own sales. With this system, Nutrilite achieved stunning success compared to the old “direct-selling” method. In 1959, two good friends- Rich DeVos and Jay Van Andel- started a new company called Amway Corporation selling biodegradable all-purpose cleaner. By using a network marketing compensation plan, the tiny enterprise achieved remarkable success with a sales force all over the United States. Dr. Forrest Shaklee did the same with nutritional products in 1959 with Shaklee products. Over the years, network marketing has evolved and diversified into a wide range of products and services as more companies have adopted this marketing method.

Network Marketing is not an Employee/Employer Relationship

As a network marketer, you do not work for the company; you work with the company. The business relationship is a tangible and dynamic partnership where the company provides: the products and  packaging, research and development, capitalization, financial management, legal and regulatory compliance, data processing, administration, order taking, purchasing and production, quality control, product satisfaction guarantees, warehousing, shipping, creation and production of marketing materials, and so on. So even though you are in business for yourself—you are not in business by yourself.