MULTILEVEL MARKETING

BUSINESS  MARKETING ESSENTIALS

 Multilevel Marketing

 BY SANDRA LIM

 Updated May 1, 2019

 What Is Multilevel Marketing?

 Multilevel marketing is a strategy some direct sales companies use to encourage existing distributors to recruit new distributors who are paid a percentage of their recruits' sales. The recruits are the distributor's "downline." Distributors also make money through direct sales of products to customers. Amway, which sells health, beauty, and home care products, is an example of a well-known direct sales company that uses multilevel marketing.

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 Multi-Level Marketing

 Understanding Multilevel Marketing

 Multilevel marketing is a legitimate business strategy, though it is controversial. One problem is pyramid schemes that use money from new recruits to pay people at the top rather than those who perform the work. These schemes involve taking advantage of people by pretending to be engaged in legitimate multilevel ornetwork marketing. You can spot pyramid schemes by their greater focus on recruitment than on product sales.

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