A Project Work on Multilevel Marketing System

A Project WorkonMultilevel Marketing System

Under the guidance of Mrs. Smita PallaviSubmitted By:

Ankit Jain(BE/15221/11)Animesh Kumar(BE/15232/11)Introduction to MLMMultilevel Marketing(MLM) is one of the fastest growing yet most misunderstood methods of moving products in use today. It has been termed by many as the Wave of Eighties.MLM has been in our midst for about 45 years now. Some companies that have been around for 20 years or so are already doing a billion dollars per year by themselves.Marketing simply means moving a product or service from the manufacturer or provider to the consumer.Multilevel refers to the system of compensation provided to those persons who are causing the product to move or the service to be provided.

What is MLM?Multi-Level Marketing(MLM) is amarketing strategyin which the sales force is compensated not only for sales they generate, but also for the sales of the other salespeople that they recruit. This recruited sales force is referred to as the participant's "downline", and can provide multiple levels of compensation.Other terms used for MLM includepyramid selling,network marketing,andreferral marketing, i.e, MLM firms sell their goods not through a conventional distribution system and through retail outlets but through individual people selling to their friends and aquaintances.

Multi-level marketing (MLM), is a business-distribution model that allows a parent company to market its products directly to consumers by means of relationship referrals and direct selling.

Concept of MLM

PURPOSEMulti level marketing or MLM business is one of the most powerful business concepts that we have ever come across in the history of world business. However, despite the thousands upon thousands of people that have used this product distribution model have helped live a lifestyle that they would have only dreamed about, there is still a significant amount of people that have some absolutely terrible things to say about multi level marketing.

Multi level marketing, MLM, is without question, in my opinion a business model that has changed lives for the better. I guarantee you that many people who have been successful in creating a full time income in this industry would have never been able to create that type of income using traditional business or investing. This is because it offers several benefits that traditional business and investing simply do not offer, especially in India where MLM business is still to catch up.

Advantages of MLMThe cost to startup is low.They offer a strong support system.Good examples help lead the way.The company is linked to solid track record and showcases great work ethics.By becoming a member, you can ask questions to more experienced marketers.U dont need experience. Just practice the basic business skills to gain the mastery.Both full time and part time,The competition among peers is non threatening.Decent bonuses and numerous incentives are given to top workers.Disadvantages of MLMWhile planning to create a downline, it can cost.Some companies only pay for recruiting and do not give out a commission based upon total sales. This is pyramiding and it is ILLEGAL.A lot of money is spent on eating out and hotel rooms.Some MLM companies manipulate their productsand coerce the members to use their products.

List of some top MLM companies

Conclusion