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Prepared By:-

ABHISHEK KUMARLBSIMPGDM(EVE.)

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HISTORY

y MLM started in the US, in 1959, by business partnersRich DeVos and Jay VanAndel, originally with just onesingle product and a new and unique business vision.

y They believed that they should be paid relative to the

benefit the company continued to get from theiroriginal work.

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MLMy Multi-Level Marketing(sometimes called Network

Marketing, Referral Marketing or Direct Marketing),

multiple levels of people are marketing a product toconsumers.

yA sales representative (also referred to as a distributor,member, affiliate, partner or associate) gets customers

and recruits and trains another sales rep to get customers.y The products and company are usually marketed directly

to consumers and potential business partners by meansof relationship referrals and word of mouth marketing.

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Sales rep gets customers and trains another sales rep to get customers.

Refer a friend and youll receive a discount on your nextpurchase, this is multi-level marketing.

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THE TRDITIONAL COMPANY

y In a non-MLM company, a sales manager and sales

reps are hired by the company.

y Once a sales manager is overwhelmed, the companycan hire another manager or convert a sales rep into a

manager.

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Traditional companies (non-MLM) use Multi-Width Marketing.

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The Multi Level CompanyyAn MLM companystarts by recruiting one person

who gets customers and recruits sales reps with the

option to become a manager.y The MLM company only pays commissions, not

salaries.

y This is beneficial to the company because of rapid

expansion by the number of trained sales reps.y This is also beneficial to the sales reps because their

income isnt limited to only what they can sell - theycan also earn commissions for having trained other

sales reps.

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MLM is OrganicOrganically, the MLM industry is a fantastic model. Heres

why:

yIn its organic state one person shares a valuable productor service with another

yA person shares a business idea with another

y The person who shares the business with another ONLY

profitsIF

the person they shared the business withsucceeds.

These three steps are the organic concepts of MLM and areabsolutely brilliant.

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What kind of products are sold

most in MLM?

1- Products should have a authentic presenceother than mlm system also.

2- Price should not be over for repurchases.

3- Manufacturer of Product should have

good reputation.

4- Health Products are sold most in MLM.

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Criticism OfMLM

y The Federal Trade Commission(FTC) issued a

decision, in 1979 in which it indicated that multi-levelmarketing was not illegal in the United States.

yAMWAY was found guilty of price fixing and makingexaggerated income claims.

y MLM's are also criticized for being unable to fulfilltheir promises for the majority of participants

y The exploitation of personal relationships for financialgain

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MLM Compensation Plan

Unilevel Plan

Matrix Plan

Stairstep Plan

Binary Plan

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UNILEVELPlanAs the name suggests, the plan allows aperson to sponsor one line of distributors,called a "frontline.

There are no width limitations, meaningthere is no limit to the amount of peopleone can sponsor in the frontline.

The common goal of this plan is to

recruit a large number of frontlinedistributors and then encourage them todo the same.

Use only one commission type, the level

commission type.

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STAIRSTEPPlan

Sales volume is created by recruiting andby retailing product.

Various discounts or rebates may be paidto group leaders.

Once predefined personal and/or groupvolumes are achieved, a representativemoves up a commission level.

The original upline usually continues tobe compensated through override

commissions and other incentives.

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MATRIX Plan

Matrix plans often have amaximum width and depth.

When all positions in arepresentative's downlinematrix are filled a new matrixmay be started.

Representatives in a matrixearn unlimited commissions onlimited levels of volume with

minimal sales quotas.

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BINARY Plan

oIt allows distributors to haveonly two front-linedistributors.

oThis "spillover" is one of themost attractive features.

oThe primary limitation isthat distributors must"balance" their two downlinelegs to receive commissions.

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MLM Companies in INDIA Attitue Trading (P) Ltd.

Amway

FLP

Tupperware

DXN

RCM

Modi Care

Oriflame

HLL

RMP

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WORKING OfMLM

RMP(Resource of Money & Power)

Choose your product among 12 different products

Get the Demand Draft Choose your sponsor Get your sponsor id

USERID vij0003idTRACKING ID RMPLKJH14098

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RMP has Binary Plan

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SALES TECHNIQ

UES

yLook for a prospect

yAttending Business Meeting/Seminar

yConvince prospect for the business profits

yTake the joining

yGive training

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RMP

BU

SINESSP

OLICIES

yCommission

yIncentives

yCeiling

y

Car Loan

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Intellectual Distribution OfProducts

Because intellectual distribution represents the bestopportunity for network marketing companies andtheir sales forces to succeed, what it is called the METS

Formulay Motivate,

y Educate,

y Train,

ySupport

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Whats wrong wit

hMLM??

yMLMSales Technique: Rumors, Slander,Defamation

yMath and Common Sense

y Learning the Hard Way(exploitation of personalrelation)

y High-pressure Selling

y "Mother, Let Me Tell You About a Fantastic

Opportunity..."y Dubious Claims

yMotivation: Powerful but Misguided

y Exaggerated income claims

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REWARDS

Commissions based on the ongoing sales volume of your downlinegroup. Lots of personal recognitions, public recognition and

encouragement from the entire team.

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CAREER GROW

TH INMLM

y Most MLM companies provide career growth in terms ofLevels and Target is ceiling.

y Commission earnings are weekl

y

These levels are, like:

SILVER GOLD STAR DIAMOND

PRESIDENT CLUB DOBLE CROWN CROWN

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Check points for the legalMLMy Company must have their own branded products.

y A good residual plan is must.

y Value for money should be there at the time of joining.

y Products should be of daily use or must have repurchase power.

y

Quality should be good as it is word of mouth business.

y Management should not be a part of some past illegal things.

y At least a Private Limited firm should be there.

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