Multi-Level Marketing can be defined as a methodology of marketing in which the sales force within an organization is not only compensated for the sales they generate on a personal basis but also for the sales generated by the sales people recruited by them. Multi-Level marketing alias MLM is said to have originated way back in the 1920s and is carried out in many companies across the globe even till date.
MLM is also known by the names of Pyramid Selling, Network Marketing and Referral Marketing. The form of MLM has been widely criticized by many marketing experts across the globe since some companies are known for exploiting the members of these MLM Networks and also indulge in designing illegal pyramid schemes. At times, many people use the term Direct Marketing as a synonym for MLM but MLM is only a kind of Direct Marketing.
Textbooks on Multi-Level Marketing
There are a variety of textbooks that are available over the shelf in the market regarding MLM. Here are some details as follows:-
Guerrilla Multilevel Marketing by Jay Conrad Levinson, James Dillehay & Marcella Vonn Harting (Published by Warm Snow Publishers – Year 2008).
Your First Year in Network Marketing: Overcome your fears, Experience Success, and Achieve your Dreams! By Mark Yarnell and Rene Reid Yarnell (Published by Crown Publishing Group – Year 2010).
Examples of Multi-Level Marketing
Example 1: An interesting example of MLM is when brands like Tupperware originally used Single Level Marketing but later on by around the year 2009, they started using MLM Technique. Now more than a thousand such companies in the USA alone have started this MLM System.
Example 2: Another interesting example of MLM is that of the brand called Amway. The Federal Trade Commission of the USA issued a decision in 1979 that indicated MLM being Legal within the USA. Yet, Amway was found to be involved in Price Fixing and made huge income claims when in reality they have been alleged of effectively requiring independent distributors to sell their products at the same fixed price.
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